Artificial intelligence is getting closer to making real transactions instead of just giving advice. A new test by DBS Bank shows how AI may soon handle purchases for customers. The bank is working with Visa to try out a system called Visa Intelligent Commerce, which lets AI software buy things on behalf of users. This could mean faster, smoother shopping experiences in the future.

How the AI Payment System Works

The system allows digital agents—smart programs operated by AI—to search for products, choose options, and complete payments using bank-issued payment credentials. DBS has already tested this system with real transactions, like buying food and beverages using DBS or POSB cards. The goal is to let AI handle routine purchases, making everyday shopping easier for customers.

Visa’s framework keeps the bank in control of the transaction process. Payment details are secured with tokenization, which replaces sensitive info with digital tokens. Transactions go through approval steps managed by the bank, which checks if the purchase fits the user’s rules and limits. This means the bank decides whether the AI’s action is allowed before money moves, maintaining human oversight in the process.

The Shift Toward Agent-Driven Commerce

This pilot is part of a bigger move to explore how AI can fit into financial systems. Instead of just helping with advice or recommendations, AI is starting to take part directly in transactions. Banks see potential in using AI as operational partners—handling routine payments and bookings—while still keeping control over security and permissions.

Early use cases focus on simple, repetitive tasks like ordering groceries, renewing subscriptions, booking trips, or restocking household items. These are tasks where AI can follow rules set by the user, such as spending limits or preferred brands. DBS and Visa hope to expand the testing to include broader online shopping and travel bookings as they refine the system.

Opportunities and Challenges for Banks

Allowing AI to make payments opens new opportunities for banks. They could strengthen their role in digital commerce by acting as the gatekeeper for consent and security. This gives banks more control over how and when transactions happen, which could boost customer trust.

However, it also raises questions about liability and dispute handling. If an AI makes a purchase that the customer later challenges, banks will need clear rules for resolving these issues. Security and governance will be key factors in whether this new payment model can grow quickly or stay as a pilot project.

Many industry experts believe customers might be more comfortable accepting AI suggestions than fully trusting AI to make financial decisions. Visa’s approach, which keeps approval logic within the bank’s systems, aims to reassure users that humans still oversee the process. This careful balance could help the technology gain wider acceptance in the future.

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Sources

• unsplash.com
• ai-expo.net
• techexevent.com
• cybersecuritycloudexpo.com
• techforge.pub