AI adoption is skyrocketing across industries, but trust isn’t keeping pace. For debt collections professionals, this presents a major challenge. Trust is the foundation of repayment behavior, and without it, even the most polished strategies fall flat. What does this growing skepticism mean for debt recovery?

AI adoption is rising, but trust is falling—why?

As consumers’ exposure to AI increases, so does skepticism. A Pew Research Center survey showed that year-over-year, a growing number of people feel concerned rather than excited regarding AI in daily life.  

Mistrust in AI often stems from two key concerns. Customers worry that biases in algorithms lead to unfair treatment. At the same time, many are concerned about how AI handles their personal information and question whether these systems are working in their best interest. These concerns leave delinquent customers feeling vulnerable, which is not a good foundation for building trust.

No trust, no results: What collections teams need to know

Trust is the foundation of customer engagement, and in debt recovery, it’s critical to driving repayment behavior. That’s why mistrust of AI isn’t just an abstract issue—it directly affects debt recovery operations.  

Past-due customers who distrust AI are less likely to engage with automated tools such as chatbots, even when those options are faster and more convenient. Instead, they may turn to more conventional, human-focused channels, like inbound phone support. This in turn strains resources and drives up response times.  

For instance, a customer avoiding chatbot interactions might opt to call customer support to “talk to a human” instead of leveraging an AI self-service app. However, longer hold times and complicated “press 1 to...” navigation systems often frustrate and alienate customers further. This can erode trust even more and reduce the likelihood of repaying.

Even worse, some past-due customers may avoid communication altogether out of concern that the process is biased or not secure enough. This makes repayment more challenging to achieve—plus, it damages customer relationships, increasing the likelihood of charge-offs and reducing customer LTV.

What it takes to make AI a true asset in collections

Despite growing concerns, AI holds immense potential for debt recovery—especially when we pair it with human insights. Transparency about how we use AI, along with efforts to address biases and ensure robust data protection, is key to building the trust we need for effective strategies.  

By bridging the gap between technology and human understanding, we can create solutions that engage past-due customers, inspire meaningful repayment behavior, and deliver measurable outcomes.  

Read our next blog to discover how enhancing AI’s strengths with human insights creates collections strategies that build trust and drive results.

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