Rebuilding trust with AI

If you ask consumers whether they trust their bank or health insurer, the answer is often lukewarm at best. Traditional financial institutions are seen as opaque, distant, and—in the worst cases—extractive. In a recent survey, barely a third of people thought their bank was being honest and transparent about costs and fees. But this narrative misses a subtler, more hopeful trend: The very technologies customers once feared as “creepy” are now opening a path toward rebuilding trust—not by hiding behind compliance and branding, but by providing real, personal value that people experience every day.

At the heart of that opportunity is AI. But not the generic, algorithm-as-black-box that so often gets headlines in the press. I’m talking about AI designed to help people, surfaced in ways that feel insightful rather than intrusive, and that elevates the relationship between individual and institution. It has the potential to rewrite our skepticism of digital products. 

The myth of the “creepy algorithm”

We’ve long assumed that consumers recoil at AI and the use of personal data. But emerging evidence and our own work at IDEO suggest a more nuanced truth: People don’t mind institutions using their data if the outcome is genuinely helpful.

What consumers resist is not personalization per se, but value extraction masquerading as personalization. They reject opaque upsells, hidden fees, and pricing strategies that leverage data solely to maximize profit. Anyone who has filed their taxes with the most popular online filing software can attest to the repeated (and difficult to decline) requests to use their tax data and share it with third parties, or to pay for add-on features of dubious value. But consumers welcome insights that feel like guidance—a personalized budget forecast that suggests paying down a mortgage faster, or a care recommendation that anticipates a chronic condition based on patterns in medical claims.

Financial institutions need to know their customers to help them meet their goals, not just the company’s bottom line.

When AI becomes a bridge, not a barrier

This distinction reframes the role of AI from a technical feature to a trust-building mechanism across two dimensions:

Predictive empathy: AI can surface insights that anticipate people’s needs before they articulate them. Imagine a health insurer that detects early patterns of risk in claims data and nudges members toward preventive care—with clear explanations and options—rather than waiting for a crisis.

Clarifying complexity: Financial and health decisions are inherently complicated. Consumers often feel alone with high-stakes choices—choosing a plan, managing costs, planning a life event. AI can simplify decision pathways, outline “what good looks like,” and benchmark personal choices against broader patterns of positive outcomes.

This is not theoretical. Customers are more open to institution-driven AI guidance than third-party general-purpose AI tools, precisely because of contextual relevance. While 79 percent of US consumers are uncomfortable with AI providing medical advice, a majority are open to AI supporting tasks like after-visit summaries and follow-ups.

In recent work we completed for a network of financial advisors, for example, we found that a customer’s trust in their financial advisor alone was not enough. They needed to believe that the plan presented to them met their needs and was likely to succeed, given the current market and their own financial situation. Unfortunately, too many financial institutions are seeing an opportunity to replace people with machines. When, in fact, there’s now an entirely new opportunity space of using generative AI to show, rather than tell, customers why they should have confidence in the path forward. People build trust. Digital tools can build confidence through what-if scenario planning, natural-language explanations, and the ability to have back-and-forth conversations whenever people want, without fear of asking “stupid” questions.

The unleveraged assets: contextual data and human intent

Banks service millions of accounts across life stages. Health insurers care for diverse populations across care journeys. These institutions are regulated to protect consumers, and in theory, succeed when their customers succeed. Yet traditionally, the relationship has been transactional: accounts, premiums, claims, and products.

AI changes that calculus. With careful design, institutions can translate the data they already hold into guidance that feels humane and useful. What might that look like?

• A bank dashboard that explains how spending patterns today impact long-term financial goals tomorrow in plain language, with actionable suggestions.

• A health insurance experience that models likely care pathways based on clinical evidence, population outcomes, and expected out-of-pocket costs, helping members choose care confidently.

• Alerts that not only flag risk—say, missed medication adherence—but also provide contextual support options, such as care coaches or financial assistance resources.

We don’t have to imagine far into the future to see what this looks like—we can actually see it in the not-too-distant past. When IDEO worked with PNC to develop their online banking platform, Virtual Wallet, one of the most compelling features for customers was a calendar that visualized “Danger Days”—days when their balances would be low, and they were most likely to overdraft. During a time when banks were making big profits by optimizing their technology to increase overdraft fees, PNC went in the opposite direction, helping customers avoid fees they despised and improve their financial lives. The result was an award-winning product that led to millions of new accounts.

This reframes data use from an internal optimization tool to a shared resource that benefits the member first. As banks bring generative and agentic AI to the masses, that could start to look like suggesting specific actions customers can take to reduce spending when cash flow is tight, or automatically splitting bills that fluctuate in cost, such as groceries and utilities.

Why incumbents have a strategic advantage

New fintech and health tech startups often don’t have to contend with years of technology debt and legacy systems, but they do suffer from a cold-start problem: They lack deep context. They may ask users to upload data, recreate history, or deduce preferences from limited interactions. Meanwhile, incumbent banks and insurers already have longitudinal data spanning life events, regulatory frameworks ensuring baseline protections, and direct experience managing risk at scale.

These are more than just advantages—they are assets waiting to be mobilized to build trust.

A new contract between people and financial institutions

Rebuilding trust in financial services and health insurance isn’t just a matter of better algorithms. It’s about redesigning relationships and using AI to make institutions advocates for individual success.

It’s easy to imagine continuing with the status quo: adding a chat interface to a mobile banking app that relies on existing functionality, for example, or offloading the most commonly-requested customer support tasks to an agent to reduce call center volume. 

That’s not to say that there isn’t merit in some of those approaches. But, in a world where AI can feel impersonal and inscrutable, there is an opportunity for these institutions to shine by making AI personal. That’s not only good design. It’s good business, and it’s good for society. The question isn’t whether AI can help. It’s whether we will use AI to help people—boldly, compassionately, and with trust at the center.

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