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

Leading banks have raised concerns that AI-powered shopping agents could expose consumers to increased risks of scams, fraud and data breaches, while the technology firms developing the bots push forward with their ambitions. NatWest, Bank of America and other major banks issued a joint report on Tuesday outlining principles for safe development of the agentic commerce technology.

The banks acknowledged that consumers are excited about the potential of AI agents to streamline online shopping, with searches originating from such bots rising to 2.5% of total searches from 0.3% a year ago, according to John Lewis, a prominent British retailer. However, the banks warned that the rapid pace of AI technology development outstrips existing industry standards and consumer protections.

Consumers are uncertain whether AI agents will act in their best interests, and they worry that AI agents might make purchasing mistakes, overspend or fall victim to scams. The banks also expressed concern that AI agents may request card details directly from customers and enter them into websites, or steer users toward payment methods with weaker consumer protections.

To address these risks, the banks have proposed several measures for policymakers, including requiring clear disclosure when an AI agent is involved in a transaction, greater transparency about how AI agents make decisions, and safeguards to protect customer data. The banks also emphasized the importance of allowing consumers and merchants the freedom to choose AI-powered e-commerce services, and ensuring that different AI systems can communicate with each other seamlessly.