#India #Noida #HCLTech #AI Implementation #Payment Industry

The Shift Towards AI in the Payments Industry

The payments industry is undergoing a transformative shift towards artificial intelligence (AI), as indicated in the recent report released by HCLTech, a global leader in technology. With 99% of organizations implementing AI in their payment operations, the urgency for modernization and innovation is palpable. However, significant concerns about trust and regulatory preparedness prevail, underpinning the industry's journey towards automation and AI integration.

The report, unveiled simultaneously in New York, London, and Noida, emphasizes a contrasting scenario—a landscape where while AI is rapidly adopted, it does not inspire confidence among leaders. Nearly 91% of executives express their apprehension about the risks associated with AI, revealing a clear gap between ambition and actual readiness. Acrucial statistic from the study shows that 60% of these executives deem existing AI-based fraud detection tools ineffective, raising immediate questions about the security of their operations.

The Paradox of AI Adoption

The paradox outlined in the report suggests that though AI is pivotal for enhancing customer experience while safeguarding against fraud, the organizational infrastructure often lacks adequate governance to implement it responsibly. Alarmingly, 49% of organizations operate without formal AI policies, exacerbating fears over AI hallucinations, synthetic fraud, and data breaches, particularly prevalent in Continental Europe where only 19% of executives feel fully prepared for the future in payments.

Insights from Industry Executives

Key findings of the report include:

• - AI is ubiquitous, trust is not. While nearly all organizations employ AI in payments, executive concerns overshadow this trend—91% of leaders are wary of the risks involved.
• - Leaders are unprepared for an autonomous future. Over half of the organizations anticipate reaching autonomy within 18 to 24 months, but merely 17% are currently operating under this model.
• - Innovation is essential, but the modernization lags. Though 52% of executives are pushing for transformative strategies, only 20% of companies possess native cloud-based, real-time data systems enabling true innovation.
• - Customer demands are making companies anxious. An overwhelming 87% of executives fear losing customers in the absence of real-time payment capabilities.
• - Cautious Europe. Approximately 12% of Continental European executives are skeptical about the long-term value of Agentic AI, with 57% preferring to refine existing products rather than embrace new innovations.

A Call to Action

Srinivasan Seshadri, HCLTech's Chief Growth Officer and Global Head of Financial Services, emphasizes the urgency for leaders in payments to bridge the gap between ambition and preparedness. He states, “While payment leadership is keen on innovation, the chasm between aspiration and execution is profound. Responsible AI governance, infrastructure modernization, and strategic clarity are essential for thriving in the evolving payments landscape.”

HCLTech is set to officially launch the complete report at the SIBOS conference in Frankfurt. The findings serve as a wakeup call for stakeholders in the payment industry to address the existing gaps to safeguard the future of their operations against emerging risks.

To explore the comprehensive findings and recommendations provided in the report, the full document is accessible at HCLTech's payment research report.

About HCLTech

HCLTech operates with over 223,000 employees spanning 60 countries, providing industry-leading capabilities focused on digital, engineering, cloud, and AI solutions. Their expansive service portfolio gears towards various sectors, including financial services, manufacturing, life sciences and health, high-tech, semiconductors, telecommunications, retail, consumer packaged goods, and public services. The company reported consolidated revenues of $14 billion for the fiscal year ending June 2025, marking its robust position in the global technology landscape. For more information on HCLTech, visit hcltech.com.