Customer demographics play a role in AI-driven chatbot adoption at financial institutions. 

“Having a one-size-fits-all strategy [for AI deployment] is not the best strategy to have,” Rahul Kumar, vice president and general manager of financial services at AI-driven customer experience provider Talkdesk, told Bank Automation News. “Getting a better understanding of the segments that you are serving and then tailoring these experiences intelligently” is the way to go. 

According to Talkdesk’s Future of Finance: AI Consumer Trends poll, which surveyed 1,500 U.S.-based consumers over the age of 18 in August, client age plays a role in AI chatbot adoption and acceptance. 

The study found 71% of millennials use chatbots monthly compared to 43% of baby boomers. 

“It’s the appetite for the younger generation because of the way they run their day-to-day lives,” Kumar said. “They want answers quicker, easier, [while] the older generation still has the patience.”  

According to the survey: 

• 64% of consumers trust AI for account queries; and 

• 63% trust AI for general customer support.  

Similarly, a J.D. Power and Associates poll this month found that 72% of chatbot users are younger than 40, again indicating that understanding and trust in AI-driven technology play a role in adoption. J.D. Power surveyed 2,000 financial services customers in the U.S. about their use of AI.  

AI-driven chatbots in action

Financial institutions including Bank of America, Bank of Montreal and TD Bank have implemented AI-driven chatbots and are seeing a rise in adoption. 

• Use of Bank of America’s AI-driven chatbot, Erica, increased 7% year over year to 19.6 million in the second quarter;  

• BMO’s AI-driven chatbot, BMO Assist, had 3 million customer interactions, up 50% sequentially, in its third quarter, which ended June 30and 

• TD Bank’s chatbot, TD Clari, had 8.3 million customer interactions in its third quarter, up 2% YoY. 

The banks are seeing an uptick in chatbot adoption and continue to invest in their digital capabilities. Bank of America, for one, is “using AI to accomplish that,” Chief Executive Brian Moynihan said during the bank’s Q2 earnings call in July. 

Said Talkdesk’s Kumar: “Different segments, based on the demographics, want to engage with AI differently,” and financial institutions need to have a flexible and personalized strategy to meet consumer needs.