Agentic AI Transforms Consumer Finance: Opportunities and Risks Examined

Experts discuss the legal and regulatory challenges of AI-powered automation in the financial services industry

Mar. 12, 2026 at 3:21pm

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Artificial intelligence is rapidly transforming the consumer financial services industry, with the rise of "agentic AI" systems that can autonomously make decisions, interact directly with consumers, and initiate actions like transactions or communications. While these capabilities promise major efficiencies, they also raise complex legal questions regarding accountability, fairness, and consumer protection. Experts from Ballard Spahr and NYU School of Law discussed the opportunities and risks of agentic AI in areas like marketing, underwriting, fraud detection, and customer service.

Why it matters

As agentic AI becomes more prevalent in consumer finance, financial institutions must navigate a complex web of legal and regulatory risks. Issues around liability, unfair or deceptive practices, fair lending, and algorithmic bias could expose firms to significant liability if not properly addressed through robust governance frameworks.

The details

The panel examined how agentic AI differs from earlier forms of automation, with the ability to make autonomous decisions, interact directly with consumers, and learn from prior interactions. In financial services, these systems may soon conduct customer service, initiate collections, execute payments, or manage purchasing tasks for consumers. While this promises greater efficiency, it also raises concerns about consumer harm, particularly in unsophisticated markets where consumers may misunderstand complex financial products. The experts highlighted risks around algorithmic price discrimination, misleading advertising, fair lending violations, and consumer deception in automated interactions.

  • The discussion took place on March 12, 2026.

The players

Professor Oren Bar-Gill

Professor of Law at New York University School of Law, and co-author of the book "Algorithmic Harm: Protecting People in the Age of Artificial Intelligence".

Joseph Schuster

Partner at Ballard Spahr law firm.

Adam Maarec

Partner at Ballard Spahr law firm.

Alan Kaplinsky

Founder and former practice group leader of the Consumer Financial Services Group at Ballard Spahr, and host of the Consumer Finance Monitor Podcast.

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What they’re saying

“While pricing based on individual risk, such as in insurance underwriting, is widely accepted, pricing based on willingness to pay raises significant consumer protection concerns.”

— Professor Oren Bar-Gill

“AI is a tool, not a liability shield. Institutions remain responsible for the actions of AI systems just as they would for the actions of employees or third-party vendors.”

— Joseph Schuster, Partner, Ballard Spahr

What’s next

The panel noted that financial regulators are already asking supervised institutions detailed questions about how AI is being used, and that institutions that implement structured governance processes will be better positioned to respond to these inquiries.

The takeaway

As AI technology continues to evolve in consumer finance, financial institutions must balance the benefits of increased efficiency and personalization with robust legal and compliance oversight to mitigate the risks of consumer harm, unfair practices, and regulatory scrutiny.