Do you trust AI to shop for you? Credit Card Companies Bet on You

AI will soon be able to make purchases based on preferences it learns about you. You just need to hand over your credit card. Visa and Mastercard both announced last week that their cardholders will be able to use artificial intelligence to automate credit card purchases for groceries, travel and everything else.

Visa confirmed to CNET that testing for its new Visa Intelligent Commerce program is underway in North America, with widespread usage expected next year. Mastercard’s

Agentic Payments Programis similar to Visa’s offering and currently available in the US. Jack Forestell, Visa’s chief strategy and product officer, stated in the press releasethat the program was available in the US. “These agents will need to be trusted with payments, not only by users, but by banks and sellers as well.”

But trusting AI isn’t easy. Since its introduction, it has been in the news for giving misleading answers and “hallucinations,” fabricating or operating in unexpected manners. Giving AI your financial data could have serious consequences. What if an AI agent hallucinates, and makes a purchase of hundreds of dollars or is fed a link to a phishing website?

It’s also unclear how these services will deliver and vet shopping recommendations. AI recommendations are useful as long as they are accurate and have no ulterior motives. ChatGPT announced last month it would be adding shopping features to ChatGPT’s Search. ChatGPT does not purchase items for you.

These AI-agents could make it easier for you to find products and save you time by reducing the amount of research you do. However, you may not feel the same level of confidence in your purchase if it is done yourself.

Visa’s & Mastercard’s programs are designed to use AI in order to learn about your buying habits and personalize your shopping experience. They go one step further and allow you to authorize AI make purchases for you.

Mastercard gave an example: If you’re planning a celebration, the AI agent can recommend supplies, outfits and venues based on the conversation and your preferences, and then make the purchase for you. It is unclear how the AI agent determines the best product for you or if companies can pay to promote their products.

For security, both programs are tokenized. This means that your credit card number is replaced by a one-time use key. The AI agent will not be able to access your actual credit card number. It’s like using a virtual number. Visa and Mastercard have said that you don’t need to get a new card to use the new AI tools. You can also set up controls such as spending limits and purchasing restrictions. Both companies have said that their existing fraud protections for credit cards extend to AI agents as well as any dispute resolution.

While generative AI can be helpful in solving everyday problems, not everything needs to be automated. These new AI agents can tailor a customized shopping experience, and reduce the time spent researching before checking out.

These improvements may be convenient, but they could also make it easier to spend money because you’ll have less time. The agent may also suggest products that you would not normally buy, which could lead to credit card debt.

Most of the features, including learning your shopping preferences, are already available.

Subscriptions and bill payments can be automated, without AI purchasing things on your behalf. You can use generative AI, such as ChatGPT, to narrow down product options if you choose. Or you can check Google reviews to find the best fit.

Your data, such as how you shop, are also more valuable than most people realize. Consent to use them shouldn’t be taken lightly.

Although Visa and Mastercard fraud protections apply to these AI purchases as well, previous issues raise the issue of whether or not you should give your financial information to AI.

When an AI presents a fake historical event or adds extra fingers to a generated image, it’s one thing. You should be cautious about sharing your personal habits and spending money, at least in the beginning. CNET senior AI Editor Jon Reed said.

“If you do decide to use these tools, make sure to keep a close eye on your financial accounts and transactions to spot anything unexpected before it becomes a bigger problem.”