A couple of years after its initial boom, artificial intelligence (AI) still remains a huge buzzword in the fintech industry, as every firm looks at a new way of integrating the tech into its infrastructure to gain a competitive edge. Exploring how they are going about doing this in 2025, The Fintech Times is spotlighting some of the biggest themes in AI this February.
2025 is set to be a big year for regulation in AI as the tech’s adoption shows no sign of slowing down. However, depending on where you are in the world, you might have a different experience with how organisations utilise AI given the differing attitudes in the EU and US for example. With this in mind, we set out to find out how AI will change the customer service experience based on new regulations and regulatory attitudes.
A different experience across the globe
Exploring this very topic about the differing approaches to AI and its impact on customer service based on region, Evan J Cholfin, CEO of LUXHAMMER, the production and management company, explores how Trump’s views on regulation will impact Americans differently compared to the European Union’s stricter policies.
With the Trump administration’s approach to minimising regulatory barriers, the US will likely see little new regulation around AI in customer service. This hands-off approach is intended to accelerate innovation and maintain a competitive edge. In contrast, regions like the European Union are expected to implement stricter regulations focused on data privacy, transparency, and ethical AI use.
“These may include requirements for disclosing when AI is used, ensuring fairness in algorithms, and strengthening data governance. This regulatory divergence will create a unique challenge for global fintech firms, requiring them to innovate quickly in less-regulated markets while navigating compliance in stricter regions.”
Privacy and ownership of data AI consumes
Looking at the EU specifically, Julija Varneckienė, COO of CapitalBox, broke down the impact the EU AI Act would have on customer service and beyond: “The EU AI Act will undoubtedly serve as the cornerstone of AI regulation in Europe, which will have an impact on customer service, sales and data analysis.
“But it is not only about technology but also the industries where AI will be in use. The further we go, the more we understand, and the more issues we will oversee which will definitely impact the privacy and ownership of the data AI will consume.
“The AI Act should limit certain high-risk and manipulative AI practices while also defining the scope and use of AI systems. Moreover, the mandate for AI literacy extends beyond mere technical competence; it underscores the ethical and practical responsibility to deploy AI tools with a deep understanding of their capabilities and limitations.
“This will require organisations to invest in comprehensive employee training programmes, fostering a culture of informed AI adoption and responsible innovation. So starting with customer service issues, it will also impact IT, operations, business, HR, etc.”
A focus on transparency, fairness, and data privacy
Further analysing how the EU’s AI sector might be impacted by regulations, and in turn how this might affect customer services, Tomas Navickas, CTO and co-founder of neobank myTU added: “We expect stricter regulations on transparency, fairness, and data privacy.
“Companies may be required to disclose when AI is being used, audit algorithms to prevent bias, and ensure customers have the ‘right to human review’ for AI-driven decisions like credit denials. Regulations could also demand greater explainability in automated processes, making it clear how AI reaches certain conclusions.
“We may also see some GDPR-style rules extending to emotion recognition tools, requiring explicit user consent. In banking, financial authorities like the European Central Bank (ECB) are already setting transparency standards that will shape how AI is implemented. As AI becomes more embedded in customer interactions, balancing innovation with compliance will be crucial for fintechs looking to stay ahead.”
Voluntary responsible AI usage
For Chris Brown, president at Intelygenz USA, the impact of strong AI regulations in the US is yet to be seen. However, he believes that when they do come, the organisations that are already using the tech responsibly, conveying how they do so, will have the largest share of the customer base as customers will feel most confident using a firm that was already responsibly utilising a new technology without being forced to by regulations.
“The biggest challenge in AI regulation isn’t new laws—it’s the lack of them. Without clear AI guidelines, companies are left navigating a fragmented landscape where responsibility falls on them to balance innovation, ethics, and security.
“Forward-thinking businesses won’t wait for regulators to catch up. Customers care about trust and transparency—if AI is making decisions that impact them, they want to know how and why. Companies that set their own high standards for AI governance will have a competitive advantage. We’re already seeing leaders in financial services, telecom, and healthcare taking proactive steps to implement internal AI compliance frameworks, ensuring fairness, accuracy, and accountability in their customer interactions.
“Regulation will come, but the smartest companies will be ready—because they built AI responsibly from the start.”
