Artificial intelligence (AI) is rapidly transforming nearly every aspect of our daily lives — from how we shop to how we communicate. While the benefits of AI are undeniable, its growing presence also introduces new risks that are often overlooked, especially in regulated industries like debt collections.

Imagine this: You’re a debt collection agency and an AI bot calls in presenting itself as the consumer. Let’s add another twist… the AI bot doesn’t disclose itself and it sounds like a person, so the collector begins to work with the bot as if it is the actual consumer. Are you beginning to form a series of questions? I know I did.

Current Regulation

The Federal Trade Commission (FTC), Equal Employment Opportunity Commission (EEOC), Consumer Financial Protection Bureau (CFPB), and Department of Justice (DOJ) do have laws in place that address AI. In fact, they have issued a joint statement clarifying that their existing authority covers AI. Additionally, various state regulators are also likely to have competence to regulate AI.

Laws such as the Federal Trade Commission Act (FTCA), Gramm-Leach-Bliley Act (GLBA), Americans with Disabilities Act (ADA), Fair Debt Collection Practices Act (FDCPA), Copyright Laws, and Telephone Consumer Protection Act (TCPA) all have something to say about the use of AI technology.

These laws tend to focus on protecting consumers from inaccuracies, bias and discrimination. They discuss how to clearly and conspicuously disclose to consumers when AI is being used and how AI is sharing and handling the privacy of a consumer’s data. They even discuss getting proper consent from the consumer before interacting with them using AI.

What’s Missing?

What seems to be missing is direction for how agencies can protect consumer data if they don’t know they are interacting with an AI bot.

Let’s consider the following;

• How does a collection agency know it has the authority to speak to an AI bot on behalf of the consumer?
• Is speaking to an AI bot third-party disclosure?
• Should the organization authenticate an AI bot?
• How can a collection agency protect consumer data from bad actors when the bad actor uses AI?
• Does existing law suggest that protecting a consumer’s data requires that an AI bot must clearly and conspicuously disclose itself to the agency?

While current laws seem to offer limited guidance on these emerging questions, you can stay compliant by proactively adopting best practices when using AI.

Recommendations

If your agency suspects it may be interacting with an AI bot acting on behalf of a consumer, start by asking the caller directly if they are a bot. Most AI bots will disclose their identity when asked, and recording this response helps establish transparency and traceability.

Should your agency choose to continue the conversation, it’s essential to obtain explicit consent from the consumer beforehand. This demonstrates a commitment to compliance and consumer protection.

Alternatively, if your agency’s policy prohibits engaging with AI bots representing consumers, collectors should clearly state this policy during the call and respectfully end the interaction.

Conclusion

Guidance to these questions will continue to evolve through regulations, court cases and industry best practices. In the meantime, if your agency chooses to interact with an AI bot acting on behalf of the consumer, be sure to discuss it with your legal counsel and take steps to verify that you have the consumer’s explicit consent before continuing your discussion with the AI bot.

Disclaimer: Finvi is a technology company and provides this post solely for general informational and marketing purposes. You should not rely on the content of this material for any other purpose or as specific guidance for your company. Finvi’s advice, services, tools, and products described herein do not guarantee compliance with any law or industry standard. You are ultimately responsible for your own company’s actions and compliance efforts. Because everyone’s situation is different, you must consult your own attorneys, accountants, and/or other advisors to obtain specific advice on your company’s compliance, legal, tax, regulatory and/or other business needs. Despite Finvi’s efforts to provide current and up-to-date information, you need to recognize that the information contained herein may become outdated quickly and may contain errors and/or other inaccuracies.