Artificial intelligence in banking
Consumer alert from the Competition Bureau
What is artificial intelligence
Artificial intelligence (AI) is where a computer performs a task that typically requires human intelligence, such as reasoning or learning.
AI models can solve problems, learn from experience, understand language and interpret visual scenes.
Many organizations could be using AI with a view to improve processes, help analyze data or improve customer experience.
AI already plays a big role in our everyday lives.
For example, AI provides recommendations and information:
- when shopping online
- through voice assistants on our mobile device or smart speaker
Learn more about artificial intelligence.
Possible risks related to artificial intelligence
AI technology also comes with risks.
Using AI may create risks in areas such as:
- privacy: your data is being collected but you may not know how it’s being stored and used
- cybersecurity: someone may steal the personal information you share with AI technology
- misinformation: you may get inaccurate answers to your questions or answers that don’t meet your needs
- fraud and scams: scammers may use AI to pretend they’re someone you know and ask you for funds
Learn how to avoid artificial intelligence voice scams.
Learn what to do if you’re a victim of fraud.
How artificial intelligence may be used in banking
When banking, you may have encountered AI. For example, when interacting with a virtual assistant, also called a chatbot.
This chatbot may have answered your questions or provided personalized recommendations for a product or service.
It may even have helped you with tracking your expenses or checking your account balance.
Other ways banks may use AI include:
- for fraud prevention by detecting unusual behaviour in the use of financial products and services
- to improve wait times for customer support
- to offer 24/7 availability of service
Limitations of artificial intelligence protection in Canada
There are currently no AI-specific laws in Canada. The Government of Canada is proposing to regulate the design, development and deployment of AI systems in Canada.
Learn more about the proposed Artificial Intelligence and Data Act.
Various measures that protect your financial rights also apply to certain uses of AI.
For example, banks must offer and sell you products and services that are appropriate for your financial needs.
They must also provide you with information in a manner, and using language, that is clear, simple and not misleading.
The Financial Consumer Agency of Canada (FCAC) supervises federally regulated financial entities.
Learn more about who FCAC supervises.
FCAC supervises their compliance with the consumer protection measures that apply to them.
Learn more about what FCAC supervises.
You can file a complaint with a federally regulated entity if you feel that it isn't respecting your banking rights.
Learn how to file a complaint about financial products and services.
Federally regulated financial entities must also follow Canadian privacy laws when collecting and using your personal information.
Learn more about federal privacy laws.