Banks warn AI shopping bots raise scam, fraud and data-privacy risks

British banks have issued warnings that using artificial intelligence agents for online shopping could heighten the risk of scams, fraud and data-privacy breaches, according to a report released on Tuesday. NatWest, Bank of America and other major financial institutions are among those to voice concerns as tech giants such as OpenAI, Anthropic, Google and Meta push AI chatbots for use in shopping.

The report, co-authored by NatWest, Bank of America, ING, ASB Bank, Capital One and Commonwealth Bank of Australia, notes that consumers are enthusiastic about the potential of AI-powered commerce, but warn that the technology is evolving faster than existing standards and consumer protections. Consumers may not fully understand whether AI agents will act in their best interests, the report states, expressing worries that AI agents might make purchases that are unsuitable, spend beyond a customer's means, or even facilitate scams and fraud.

Additionally, customers are uncertain about the level of protection they would receive in case of issues and who they would need to contact if problems arise.

The banks propose several measures to address these concerns, including requiring disclosure when an AI agent is involved in a transaction, increasing transparency around how AI agents make decisions, and implementing safeguards to protect customer data. They also advocate for consumer choice in selecting AI-powered e-commerce services and for different systems to be interoperable.