AI adoption surges in payments amid readiness & risk concerns
New research from HCLTech finds growing adoption of artificial intelligence in payments, but highlights widespread concerns over risks and readiness.
AI in payments
According to the research, the payments industry is quickly moving towards increased automation and the use of AI technologies, but this shift is accompanied by significant challenges. Industry executives identify key obstacles including issues of trust, regulatory preparedness, and the limitations of existing systems and infrastructure.
The report finds that 99% of organisations have implemented AI in some aspect of their payment operations. Despite this widespread uptake, 91% of surveyed executives express concern about the possible risks associated with AI. Among the most common worries are hallucinations-where AI produces misleading results-synthetic fraud, and risks to data security through potential leakage.
Gaps in governance
A central finding of the research is a mismatch between the adoption of AI and the readiness of organisations to use it effectively and responsibly. Nearly half of the surveyed respondents (49%) indicated their organisations do not have a formal AI policy in place. The lack of concrete governance frameworks raises questions about the industry's overall preparedness to handle AI-powered systems, particularly as these systems become more autonomous.
"Payments leaders are embracing innovation, but the gap between ambition and readiness is stark," said Srinivasan Seshadri, Chief Growth Officer and Global Head, Financial Services at HCLTech. "This research underscores the need for Responsible AI governance, infrastructure modernisation and strategic clarity to thrive in the evolving payments landscape."
Limits of current tools
The report identifies a lack of confidence in existing AI fraud detection technologies. Sixty percent of participants in the study said that current AI-based fraud detection tools are ineffective. This concern compounds with 91% of executives stating apprehensions about the broader risks posed by AI in day-to-day payments activities. The challenge of balancing seamless customer experiences with robust fraud protection was repeatedly highlighted, as AI is viewed as vital for achieving this balance, yet the right tools and guardrails are often missing.
Autonomous payments on the horizon
Many organisations expect their payment operations to become autonomous in the short term, with 52% of those surveyed anticipating autonomous capabilities within the next 18 to 24 months. However, only 17% report operating in a fully autonomous mode at present, signalling a clear divide between future expectations and current levels of operational maturity. This suggests a considerable amount of work remains before these businesses can achieve their ambitions in automation.
Modernisation and innovation
Organisational commitment to transformation is high, with 52% of executives stating that they are currently pursuing transformation strategies, and 58% expressing a preference for adopting innovative approaches rather than optimising legacy technologies. However, the research points to deficiencies in organisational infrastructure; only 20% of organisations have cloud-native, real-time data systems that underpin ongoing innovation. This infrastructure gap is likely to be a central focus for firms seeking to move beyond experimentation into robust, scalable operations.
Customer demands and regional differences
The urgency to adapt is underscored by customer expectations, with 87% of executives stating they fear losing business if instant payment solutions are not available. This competitive pressure appears to be a significant driver of current and planned investments in payments technology.
Regional analysis within the report shows continental Europe trailing behind in some measures of readiness. Only 19% of European executives feel fully prepared for the future of payments, while 12% are sceptical about the long-term value of Agentic AI. Also, 57% in this region would rather update existing products than deploy new ones. These findings suggest a more cautious approach in parts of Europe compared to other regions.
Need for responsible AI
The report repeatedly emphasises the necessity for organisations to develop robust governance for AI use. With a large share of participants expressing doubts about current tools and their own preparedness, the industry faces a pressing task: to build both the infrastructure and the policies needed to use AI safely and effectively within payments operations.
