Jusletter IT

This paper explores how AI can be used to help individuals in financial distress to overcome debt. Using the behavioral COM-B model as a framework for designing effective interventions, we discuss how AI can help improve individuals‘ capabilities, opportunities and motivation to sustain better financial health, and what solutions already exist for these purposes. To demonstrate the unleashed potential of AI in debt rehabilitation we conduct an experiment with OpenAI’s GPT-4, an AI model, to assess its proficiency as a personalized financial coach. While the potential of AI to support debt rehabilitation becomes evident, we also argue for the need for trustworthy technology and trust-building regulation that promotes the responsible design, implementation and use of AI in the financial sector.