Limitations of Conversational AI in Banking Transactions
The use of conversational AI—such as chatbots and voice assistants—is rapidly growing in the banking sector, promising convenience, faster service, and 24/7 availability. While these systems excel in handling routine tasks and inquiries, several key limitations remain that prevent conversational AI from fully replacing human customer service, particularly in banking transactions, where accuracy, security, and personalization are crucial. 1. Challenges in Handling Complex Queries A primary limitation of conversational AI in banking is its inability to manage complex or nuanced transactions. While AI can easily handle straightforward tasks like checking account balances, transferring money, or providing general information about products, it often struggles with more intricate queries. For instance, resolving issues related to fraud, guiding customers through the mortgage or loan application process, or explaining investment products with variable risk levels often requires a dee