AI in Debt Collection: Estimating the Psychological Impact on Consumers

Abstract

The present study investigates the psychological and behavioral implications of integrating AI into debt collection practices using data from eleven European countries. Drawing on a large-scale experimental design (n = 3514) comparing human versus AI-mediated communication, we examine effects on consumers' social preferences (fairness, trust, reciprocity, efficiency) and social emotions (stigma, empathy). Participants perceive human interactions as more fair and more likely to elicit reciprocity, while AI-mediated communication is viewed as more efficient; no differences emerge in trust. Human contact elicits greater empathy, but also stronger feelings of stigma. Exploratory analyses reveal notable variation between gender, age groups, and cultural contexts. In general, the findings suggest that AI-mediated communication can improve efficiency and reduce stigma without diminishing trust, but should be used carefully in situations that require high empathy or increased sensitivity to fairness. The study advances our understanding of how AI influences the psychological dynamics in sensitive financial interactions and informs the design of communication strategies that balance technological effectiveness with interpersonal awareness.