AI in payments: efficiency vs transformation debated

Volante hosted a recent webinar where industry figures debated whether payments firms use artificial intelligence mainly to cut costs and improve operations rather than redesign how payments are routed. The session also examined who is accountable when an AI-driven routing decision causes financial loss, delay or compliance breaches. The event was moderated by Teresa Connors and included Nadish Lad, Volante’s global head of product and strategic business.

Participants pointed to measurable benefits already in use across the payments chain: fewer manual steps, reduced exception rates, faster handling of errors and stronger fraud detection. They described these effects as concentrated in back-office processes and routine operations.

Panelists described structural changes in payments: new networks and rails, instant payment schemes, stablecoins and central bank digital currencies. Multiple routing options and a mix of legacy infrastructure and new payment paths make route selection more complex than in the past.

Speakers discussed dynamic payment orchestration, where algorithms assess transaction value, currency, corridor, required speed, cost, liquidity and risk to select a route in real time. The approach moves beyond automating back-office tasks to using AI as an operational layer for routing decisions.

The webinar addressed governance and accountability. With AI influencing routing and payment choices, participants questioned who should bear liability if an AI-recommended route causes financial loss, regulatory penalties or unacceptable delays. They outlined the need to record decision logic, set oversight processes and establish dispute and remediation procedures.

Regulatory and compliance requirements were raised as constraints on deploying AI for higher-value decisions. Participants said firms must demonstrate control, explainability and audit trails to meet internal policies and regulator expectations. They expected boards and regulators to press for clearer governance as AI takes on more decision-making tasks.

The discussion contrasted immediate operational benefits with broader uses of AI to manage routing across multiple rails and assets. Panelists advised that firms developing AI for routing should implement documentation, monitoring and accountability mechanisms before wider deployment.