Speaking at the British Mortgage and Protection Senate (BMPS), Barry Connolly, managing director of home buying and ownership at NatWest, said AI capabilities had been put in the hands of everyone with a digital device, opening up the opportunity for people to innovate and capitalise on it.
He said this was creating a “fear of missing out”, with organisations under pressure to show the adoption and use of AI, but added: “The truth is, no regulated business has so far figured out how to safely use agentic AI at scale… because nobody has so far solved for the fact that when you get digital agents speaking to each other, there is a risk that they deliver outcomes you have not predicted. But generative AI is progressing well, and the control issues associated with broader use of AI will be resolved over time.”
Connolly noted that generative AI tools had bypassed all the usual rules followed around products coming to market by putting these powerful tools in the hands of customers for free, and the industry was playing catch-up.
“It’s much harder to use these tools when you’re a regulated person who has to demonstrate good outcomes than when you’re an unregulated person,” he added.
He said people were right to be concerned about AI and its risks because of how much information people have shared on social media and other platforms, which brought about safety concerns.
The changing role of the Bank of Mum and Dad
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“In a world where this is happening and our business relies on trust, we should be thoughtful about how this technology will make people feel,” he added.
He said he was optimistic about the need for human advisers alongside AI, because if concerns about how data was used made many people less trusting and more sceptical, “that I think is a healthy tension”, saying it would be important to many customers to speak to a trusted person to validate their research.
Connolly added that there was an opportunity arising from people turning to digital agents for information, saying this was the start of people getting advice that made them more confident and motivated to achieve their goals.
“There’s going to be a space where information is going to be consumed through a digital agent.
“How is this going to play out in our world? Particularly when we are in a discussion with the FCA about the boundaries for advice. Whether that’s on mortgages or investments, we’re going to be dealing with customers who are more informed than they’ve ever been because they have asked questions of their digital agent,” he added.
Connolly said this could affect how the sector designed the customer experience.
Brad Fordham, head of distribution and customer servicing at NatWest Group, followed this up with consumer surveys from its customers about how they used AI.
He said the data showed that around half of customers looked up information on price comparison websites before interacting with firms but questioned whether they trusted technology fully and without the input or assurance of a human expert.
Potential generational differences
During the audience question segment, one delegate asked if opinions around AI would change as people grew up with the technology and adapted to it.
Connolly said research suggested that younger generations were appropriately concerned about it, as they experience many of the darker aspects of social media.
“They’re comfortable to use the tools and it’s kind of fun, but you have to remember they also live in a world where this stuff hits them in reality all the time,” he added.
He said this could end up with the next generation valuing more professional human support as they seek to build financial independence.
