Consumers in Ireland will gain the legal right to speak with a human representative instead of relying solely on artificial intelligence chatbots when purchasing financial products or services under new legislation being signed into law today.
The measures are designed to strengthen consumer protections as banks, insurers and other financial institutions increasingly use AI-powered customer service tools for online and telephone interactions.
Under the new rules, customers who are dealing with automated systems will be able to request human intervention during the purchasing process. The change aims to ensure that people making important financial decisions can receive assistance from a person rather than depending entirely on automated responses.
The legislation also introduces several additional safeguards for consumers purchasing financial products remotely. Financial institutions will be required to provide clearer and more transparent information before customers commit to contracts, helping them better understand the products and services being offered.
The rules also seek to protect consumers from marketing techniques that may pressure or unfairly influence purchasing decisions. Officials say the measures are intended to ensure that digital sales practices meet the same standards of fairness expected during face-to-face transactions.
Another significant provision gives consumers an easier way to withdraw from eligible online financial contracts. Companies will be required to provide a clear and easily accessible cancellation function, allowing customers to exercise their withdrawal rights without unnecessary obstacles.
The legislation comes as digital banking and online financial services continue to expand rapidly across Ireland and Europe. Artificial intelligence has become an increasingly common feature of customer service operations, with many financial institutions deploying chatbots to answer questions, process requests and guide customers through applications.
While these systems can improve efficiency and reduce waiting times, consumer advocates have expressed concerns that fully automated services may not always provide appropriate assistance for complex financial decisions or vulnerable customers.
Tánaiste and Minister for Finance Simon Harris said the updated rules ensure Ireland’s consumer protection framework remains suitable for an increasingly digital financial marketplace.
He said the existing system already offers strong safeguards but added that the new measures will help maintain a high level of protection as financial services continue to evolve through digital technology.
Harris also noted that more people are choosing to purchase financial products and services online, making it essential that consumers enjoy the same confidence and legal protections in digital transactions as they do when dealing with providers in person.
The legislation implements the European Union’s Directive 2023/2673 on financial services contracts concluded at a distance. The directive was introduced to modernise consumer rights across the EU as online and remote financial transactions become more common.
Officials said the changes are intended to strike a balance between encouraging innovation in financial technology and ensuring consumers remain fully informed, protected and able to seek human assistance whenever they consider it necessary.
