AI can automate collections and recovery by prioritizing delinquent accounts, recommending next-best actions, personalizing borrower outreach and monitoring repayment behaviour. Vendor and industry sources describe productivity and efficiency benefits, but these should be treated as external benchmarks rather than guaranteed outcomes. Banks should use AI in collections with clear compliance controls, fair treatment rules and human review for sensitive cases.

Want to know about AI in commercial lending? See How does AI automate commercial lending workflows?