Dan Carlton on how artificial intelligence is changing the face of debt collection
- Debtors increasingly use generative AI to draft credible-looking disputes containing factual and legal errors.
- Creditors should identify genuine issues, avoid protracted exchanges and seek early legal advice.
Much of the discussion around generative artificial intelligence (AI) has focused on the opportunities it creates for businesses. From automating routine tasks to improving productivity and streamlining communications, the technology is transforming the way organisations operate.
Less attention, however, has been paid to the impact AI is having on debt recovery and credit management.
As AI tools become increasingly accessible, it is now possible for anyone to generate a professional-looking letter, detailed complaint or seemingly legal response in a matter of seconds. A debtor who might previously have sent a short email disputing an invoice can now produce a lengthy response filled with legal terminology, references to legislation and confident assertions about why a debt is supposedly unenforceable.
For businesses attempting to recover unpaid debts,
