[ad_1]
It seems like nearly every industry on the planet is now using artificial intelligence in some way, so why not debt collectors, too?
A new report from TransUnion, titled Seizing the Opportunity in Uncertain Times: The Collections Industry in 2023, reveals that some debt collection companies (also known as 3PC–third-party collections companies) are already embracing AI-powered solutions to improve their success rates and make their jobs more efficient.
According to TransUnion’s report, artificial intelligence and machine learning technologies will have a “significant” impact on debt collection going forward. In 2023, already 11% of 3PC companies were using AI/ML technologies in their endeavors. What’s more, a full 60% of 3PC companies surveyed revealed that they were already “somewhere along the deployment path to use AI/ML-based technology.”
So what exactly are debt collectors using AI for? TransUnion’s survey of 90 companies that are using the technology revealed that:
- 58% are using AI to predict payment outcomes (a person’s ability or willingness to pay a debt)
- 56% are using AI to segment and profile customers for various workflows
- 53% are using AI to act as virtual negotiators with the people who owe the debt
- 47% are using AI to recommend methods of communication
- 47% are using AI to analyze the life cycle workflows of accounts
- 46% are using AI to anticipate the behavior of the consumer
- 37% were using AI to help customers find the correct communication channels
- 32% were using AI to monitor the behavior and performance of their workers
Unsurprisingly, the larger the debt collection company, the more likely they are to be using AI. TransUnion found that 36% of 3PC companies with a million or more accounts already use artificial intelligence in some way.
[ad_2]
Source link