How AI is taking over the financial side of travel for consumers

In the realm of financial travel services, artificial intelligence (AI) is making significant strides. A traveller looking to book a four-day trip to Dubai with a $2,000 budget can rely on AI to handle all aspects of the transaction. The AI researches various options, reserves flights and accommodations, manages currency risk in real-time, splits costs among companions, and maximizes cashback on every transaction.

Daumantas Grigaravicius, head of Middle East at global payments platform Adyen, explains that travel is a complex payment environment for consumers. A single trip can involve bookings, purchases, and charges across multiple currencies, countries, and systems. This complexity often remains invisible until issues arise, such as a declined card due to unfamiliar markets, an unavailable payment method, or a price displayed in an unfamiliar currency.

Travel payments are being revolutionized by AI in several ways, including fraud detection, foreign exchange optimization, real-time budget monitoring, and personalized payment experiences. Abdulhamid Ahmed, founder and technical director of Halala Plus, a UAE-based fintech specializing in travel payments, states that AI is transforming travel payments from a reactive task to a proactive, automated background experience.

Smart micro-budgeting engines analyze spending patterns on the fly, alerting users before they overspend or dynamically setting aside micro-savings during their trips.

AI has already proven effective in fraud prevention, a significant issue in the travel sector. Adyen has replaced traditional static models with dynamic identification, using AI-driven risk engines that analyze behavior patterns over time to verify transactions. This approach reduces both fraud and false declines.

Before a card is used, AI plays a crucial role in shaping the payment process. Predictive hedging forecasts currency fluctuations, advising travellers on the optimal time to pay for hotels or large purchases. Invisible checkout, an emerging technology, uses AI to verify identity biometrically and complete multicurrency payments without presenting a card.

At Arabian Travel Market in Dubai, Trip.com and Mastercard showcased AI travel assistant TripGenie, which acts as a full-fledged travel assistant connected to the Trip.com ecosystem, providing personalized assistance throughout the journey.

As per Daumantas Grigaravicius, AI agents that can handle end-to-end traveller experiences are on the horizon. By 2027, 80% of UAE organizations plan to use AI agents, and the government has also set plans to integrate agentic AI across 50% of its services within two years. For travellers, these AI-driven tools can eliminate financial anxiety from travel, making the entire process smoother and more secure.