Technology’s role in our everyday lives continues to increase exponentially. Although the shift to digital began before the pandemic, as we continue operating in a largely remote world, technology is increasingly used for daily tasks like shopping, banking, and even healthcare. When it comes to confirming identity, much is at stake for businesses and individuals, including potential time and material losses. The challenge companies are currently facing is how to confirm digital identities while maintaining a positive consumer experience.
Since the start of COVID-19, 60 percent of consumers have higher expectations for their digital experience, although the added strain on providers as overall online transaction activities have also increased by 20 percent, according to a recent Experian Global Insights Report.
In addition to improving the consumer experience, investing in AI will impact a company’s bottom line by providing better data hygiene, entity resolution, attribute development, and internal decision systems optimization. Our data found that 41 percent of businesses intend to use AI to acquire and onboard new customers. AI can also provide a safer, more convenient approach to fraud prevention as well.
One of the key areas where digital identity and AI play a significant role is fraud prevention. Identifying new fraud signals is where businesses see one of the highest rates of return. The dynamics of fraud are constantly changing, and new data that provides insights into emerging signals frequently become available.
Additionally, the non-linear optimization approaches that underpin many machine learning techniques match well with the signals that can be detected. Due to the “size of the prize” transactional nature, this can generate 10x to 20x multiples on investment return.
Marketers also are investing in technology surrounding digital identity as today’s consumer has hundreds of digital touchpoints. The foundation of people-based marketing is the ability to identify consumers across digital devices and channels accurately. Brands that can provide a positive experience and put the customer first are the brands that will succeed.
Correct digital identification is also imperative to the healthcare industry, where more than half of all deaths are attributed to medical errors stemming from identification mistakes. Despite some giant technological advances in recent years in inpatient management, achieving accurate and complete patient records remains a major challenge for the U.S. healthcare industry.
It’s estimated that around 70 percent of patient data held in electronic health records is incomplete or inaccurate, and up to half of all patient records may not be linked correctly. Unreliable patient data presents some huge problems for health systems, from flawed diagnoses and treatment errors to unreliable analytics and billing mistakes.
As patient portals become the new “digital front door” to access care services and manage things like scheduling and payments, and telehealth gains traction as a preferred care modality, fraudulent activity in healthcare will accelerate to an all-time high.
In every industry, reliance on technology and AI is accelerating at unprecedented rates. In the race to digital identity, early adopters already see the greatest return on investment. Businesses that frequently optimize their existing data and analytics processes, including machine learning, AI, and other technology, will come out on top.