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During this week’s Research Assistant Peer Group meeting, as always, we discussed our member’s recent thoughts and observations for compliance and all happenings in our industry. One which stood out is the noticeable surge in AI vendors at recent conferences and expos.
If you attended ACA International’s Annual Conference in July, you likely couldn’t miss the wave of AI vendors promoting cutting-edge tools and automation solutions. Artificial Intelligence is quickly becoming a major force in the debt collection space, offering powerful new capabilities. But here’s the caution: slow down before diving in, especially if you don’t fully understand what you’re implementing.
AI tools are evolving fast, and many of them are impressive. Virtual agents today can interact with consumers in real time, responding intelligently to emotions, tone, questions, and concerns—not just running through static scripts. These Virtual Agents can be amazing.
Some have tech products that can do internal data scoring along with looking at your own data and score in your own database, not just using external algorithms. They can think enough to figure out possible remedies at a higher level than before. The automation we didn’t even think of is on the horizon. We’re seeing automation capabilities emerge that we couldn’t have imagined just a few years ago.
So, what about being vigilant?
Some of the most advanced AI vendors are just now beginning to understand the complexity of the debt collection industry, particularly our intricate web of federal and state compliance obligations. These vendors may bring exceptional technology, but they don’t always fully grasp the regulatory landscape governed by the FDCPA, Regulation F, state AGs, and oh so many more acts, laws and requirements that our collectors must deal with every day, that could be handled differently with every call. It’s a beast that they have not fully grasped… yet.
Some agencies have adopted AI and experimented only to find deficiency issues with some software, or lack of capabilities that were thought to be understood by the vendor and simply were not.
Here are a few key reminders:
- Avoid long-term contracts—for now. What’s cutting-edge today may become standard (and more affordable) in just a few months. Flexibility allows you to pivot if a better or more compliant solution becomes available. Also, you may be tied to a product that is not capable of something crucial that another product will have standard very shortly. This is moving that fast.
- Get clarity on functionality. We’ve likely all been there when you onboard new software or products, talk to the salespeople that believe they understand exactly what you are asking for, just to find out afterward that they cannot do a crucial task or need to partner with another vendor you are not contracted with to perform it. The headache that follows is frustrating and usually ends up costing more, a longer implementation ramp-up, and less of what you were hoping for. Don’t assume the vendor understands your expectations, make sure they can deliver them. Confirm what’s built-in vs. what requires third-party tools or additional integrations.
- Vet thoroughly. Do multiple demos. Ask specific questions. Simulate real collection scenarios with your collectors. Test again. Then test again.
- Be skeptical of the “wow” factor. Keep that in mind when you get excited over an AI vendor promising you the world and it sounds so wonderful and groundbreaking. It may be, but it may not. A flashy demo can be compelling, but it doesn’t always translate into long-term success. Stay focused on what’s practical, compliant, and sustainable for your agency.
Implementing AI thoughtfully and strategically will position you to take advantage of its benefits—improved efficiency, better consumer engagement, and enhanced compliance. But rushing in without a clear understanding (or a backup plan) can be costly.
AI is the future of our industry and can help us in ways we haven’t even had time to think of. But avoid the pitfalls of jumping to a conclusion without doing your homework about your vendor partner. It will be a wonderful partnership if you take the time.
Documents and Crowdsourced Materials:
Top Reads:
Upcoming Webinars/ Other Announcements:
- Upcoming Webinar: RA Compliance Corner: Fighting Fraud in 2025 on September 4 at 2PM Eastern. Register here.
- Important Announcement: All AI Notetaking Bots will be removed from Research Assistant Peer Group Meetings. This is to maintain the confidentiality of our peer members.
- Have topics you want to discuss during the peer call? Please send them to Sara_Consultant@roundtables.us by Thursday to ensure it makes it on our agenda!
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