AI Investment Accelerates as Financial Institutions Battle Ongoing Credit Risk and Fraud Issues

LONDON - Aug. 19, 2025 - PRLog -- A global survey conducted with nearly 200 financial services leaders reveals persistent challenges in managing credit risk and preventing fraud. Nearly half of respondents cite ongoing difficulties, even as artificial intelligence (AI) becomes increasingly central to risk decisioning in 2025.

The survey, commissioned by Provenir, a global AI decisioning solutions leader, found that 55% of financial executives see AI as key to optimising strategy and operational performance through intelligent recommendations. Another 53% praised AI's ability to automatically improve models for greater accuracy.

Investment in AI and embedded intelligence for risk decisioning is rising, with over half of respondents planning new deployments within 12 months. However, nearly 60% report challenges in implementing and maintaining effective risk models.

Customer and account management priorities focus on speed, simplicity, and value, with 65% aiming for real-time decisioning, and 44% each focused on reducing customer friction and increasing lifetime value.

Data integration remains a major roadblock—over 50% struggle to incorporate diverse data sources. This fragmentation contributes to operational inefficiencies, reported by 52%, and inconsistent customer experiences, noted by 28%.

Fraud prevention capabilities also lag; 37% face challenges orchestrating data for application fraud, and 36% have difficulty applying AI/ML for fraud detection. Nearly one-third say siloed credit risk and fraud teams hinder a unified approach.

"Financial institutions are keenly aware of today's increasingly complex threat landscape and must adopt new approaches for improved risk decisioning and fraud prevention across the customer lifecycle while providing frictionless and personalized customer experiences," said Carol Hamilton, Chief Product Officer at Provenir.

"With an AI decisioning platform more closely aligning credit and fraud risk teams, financial services executives can ensure holistic, end-to-end decisioning with a complete view of customers across the entire lifecycle."

Further information can be found at the Provenir website. (https://www.provenir.com/2025-global-risk-decisioning-sur...)