As technology advances, artificial intelligence, or AI, is quickly becoming a powerful and important tool for businesses to innovate and scale. In the collections industry, AI can be leveraged in a number of ways to increase efficiency, streamline processes, and resolve more accounts. Here are a few ways collections firms can use the power of AI.
Analyze complex data
AI is revolutionizing the way businesses handle data, allowing them to identify trends and patterns quickly and accurately by analyzing large amounts of data. With the help of AI, collections firms can use data to make operations more efficient and remain compliant with state and federal regulations. For instance, data analysis can help firms determine the most effective communication time and channels for each consumer.
Automate repetitive tasks
Routine and repetitive tasks can be time-consuming and resource intensive. Machine learning algorithms can help analyze customer data and predict customer behavior, allowing the firm to identify high-risk accounts and prioritize collection activities. AI can also be used to send automated consumer communications, like emails and text messages. Firms can introduce agentless, real-time communications by using AI-powered chatbots for customer service and account inquiries.
Create better payment predictions
Not only can AI help firms gain valuable insights into which files are more likely to be paid, it can also help customize communications based on its predictive models. Low-risk consumers, for instance, may only need a gentle reminder and instructions for taking care of their balance. Sending the right communications at the right time can reduce complaints and increase account resolutions.
Offer personalized payment plans
Speaking of customizing communications, AI can be used to customize payment plans that meet the needs of the firm while also reducing financial burden for consumers. AI can quickly analyze customer data, like income and spending habits, and suggest payment plans based on the consumer’s ability to pay. AI can also help identify customers who may be struggling to make payments and suggest alternative options.
Digitize paper documents
AI can scan and store information on documents, reducing manual document processing and storage constraints. AI-enabled solutions can help reduce the amount of manual labor needed to digitize paper documents and help ensure accuracy, consistency, and security. Firms can also leverage AI to automatically generate standard legal documents, such as collection letters, to streamline the collections process. AI solutions can also help detect errors, anomalies, and fraudulent documents, enabling firms to quickly identify issues and take corrective action.
The use of AI for collections firms is very helpful, and those that use it will benefit greatly. The technology can make work easier, improve customer service and increase profits. To stay ahead of the competition, collections firms should consider ways to add AI solutions sooner rather than later.