The Consumer Financial Protection Bureau released a warning Tuesday regarding the use of generative AI chatbots by banks. The agency claims it has received “numerous complaints” from customers who have interacted the chatbots but have not received “timely, straight-forward” answers to their question.

In a press release, the agency stated that “working with customers to solve a problem or answer questions is an essential function for Financial Institutions – and the basis of Relationship Banking”.

CFPB warned that AI chatbots may provide inaccurate financial information or compromise customer privacy.

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The CFPB warned that artificial intelligence chatbots may provide inaccurate financial information or violate customer privacy. They could also cause a lack in trust for the financial institution and their services, and decrease customer satisfaction.

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The CFPB has named two generative AI bots, Capital One Eno and Bank of America Erica. Both were algorithmically trained using customer conversations and chat logs.

Capital One and Bank of America did not immediately respond to requests for comment.

According to the CFPB, around one third of Americans interacted with a bot in 2022. This number is expected grow as more companies integrate AI in their operations.

In a statement, Rohit Chopra, Director of the CFPB, said that a poorly implemented chatbot could lead to customer frustration, lowered trust, or even legal violations.

AI isn’t just for banks. In recent months, a flood of new services powered by generative AI has been released following the launch OpenAI’s ChatGPT.

AI chatbots can be helpful for a variety of tasks, but some bots do more harm than good. One eating disorder prevention organization removed its AI chatbot after it encouraged users to lose weight when they called the helpline seeking advice. The bot also offered “harmful” or “unrelated” suggestions.

The CFPB is monitoring the AI chatbots market and encourages customers who have complaints about chatbots in banking to contact them via their website or by calling (855) 412-CFPB (2372).

Here are some more tips on how to save money and earn higher interest. You can also learn how to open an online bank account.

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