Automated Payment Assistant: Streamlining Transactions with AI Agents

Artificial intelligence is rapidly advancing towards the ability to take action rather than just provide advice. A recent pilot program conducted by DBS Bank demonstrates how this shift could soon impact everyday transactions, as financial institutions explore systems that enable AI agents to make purchases on behalf of customers.

DBS has partnered with Visa to test Visa Intelligent Commerce, a platform designed to facilitate transactions initiated by AI software rather than humans. This system allows digital agents to browse for products, select options, and complete purchases using payment credentials issued and managed by the bank. According to reports from Asian Banking & Finance and Fintech Futures, the pilot has successfully processed real transactions, including food and beverage purchases using DBS or POSB cards.

Transitioning from recommendations to actual transactions

This trial underscores how banks are gearing up for what some in the industry refer to as “agent-driven commerce.” In this model, AI tools operate based on rules established by both the customer and the issuing bank.

Visa’s approach places the bank at the core of the process. Payment details are tokenized, and transactions go through issuer-controlled approval processes designed to verify identity and spending limits. This ensures that the bank still has the final say on whether the agent’s actions align with the user’s permissions before any money is transferred.

The DBS pilot forms part of a broader initiative to explore the role of AI in financial infrastructure. Instead of viewing AI solely as a customer-facing tool, banks are increasingly considering how it could revolutionize payment processes, fraud detection, and authorization. Observers note that this represents a shift from AI as a mere productivity tool to AI as an active participant in transactions.

Initial use cases focus on routine transactions

Early applications of agent-based commerce involve mundane purchases such as grocery orders, subscription renewals, travel bookings, or household essentials restocking. In these scenarios, the agent follows pre-set instructions from the user, such as budget constraints or preferred brands. DBS and Visa plan to expand the pilot to encompass broader online shopping and travel reservations as the testing progresses, as reported by Fintech Futures.

The concept of AI executing purchases presents both opportunities and challenges for financial institutions. While banks supporting agent-based payments could strengthen their role in digital commerce by overseeing consent and security, they also face new considerations regarding liability and dispute resolution if an agent makes a purchase that the customer disputes later on.

Security and governance will play a crucial role in determining the pace of adoption of this model. Analysts suggest that customers may be more accepting of AI recommendations before they feel comfortable with AI making financial decisions. By retaining approval processes within the issuing bank’s systems, Visa’s framework aims to reassure users that human oversight remains integral to the process.

A broader shift in the deployment of AI agents by enterprises

Many companies have progressed from testing chatbots or internal assistants to integrating AI into workflows that directly impact revenue, operations, or customer transactions over the past year. In the banking sector, this includes activities like fraud monitoring, credit scoring support, and automated customer service. Allowing AI to trigger payments could represent the next phase in this evolution.

DBS has made substantial investments in digital banking systems, and the pilot aligns with its ongoing efforts to incorporate automation into financial services. The bank has previously focused on leveraging data analytics and AI tools to enhance operational efficiency and personalize services.

The widespread adoption of agent-based payments will hinge on customers’ comfort levels with delegating financial decisions to software and how clearly banks define the boundaries of AI agent capabilities. Industry experts suggest that initial adoption may start with low-risk, repetitive purchases before expanding to more complex transactions.

(Photo by Patrick Tomasso)

See also: How financial institutions are embedding AI decision-making

Want to learn more about AI and big data from industry leaders? Explore the upcoming AI & Big Data Expo events in Amsterdam, California, and London, part of the TechEx series. These events are co-located with other leading technology expos like the Cyber Security & Cloud Expo. Visit here for further details.

AI News is presented by TechForge Media. Discover additional upcoming enterprise technology conferences and webinars here.