Artificial Intelligence in Payments: Governance, Decision Power and Systemic Risk

Artificial intelligence in payments is not primarily a technological innovation issue. It is a governance and decision-power issue. Algorithmic systems increasingly influence transaction approval, risk allocation and trust distribution across the economy.

Algorithms as economic decision-makers

Automated decision systems now shape financial flows in real time. They determine acceptance, segmentation of risk and transaction fluidity. The governance of these models becomes a strategic issue for financial institutions and supervisory authorities.

Control over decision models translates into influence over economic flows.

Concentration of AI capabilities

Advanced AI capabilities require large-scale data, computing infrastructure and model governance frameworks. This concentration can generate structural dependency for institutions relying on external infrastructures or model ecosystems. The strategic issue is not whether AI improves efficiency, but who controls and governs its deployment.

Transparency and accountability

Algorithmic decisions in payments carry direct economic consequences: transaction refusal, fund freezing, risk categorization. These decisions must be explainable, auditable and aligned with regulatory frameworks. Executives are increasingly accountable for the governance of automated decision systems embedded within payment processes.

Strategic trade-offs for decision-makers

Leaders must now navigate structural trade-offs between:

• Performance and explainability

• Automation and human oversight

• Centralisation of decision models and diversification of risk exposure

• Economic optimisation and regulatory compliance

AI in payments is becoming a matter of corporate governance and systemic stability rather than operational efficiency.

Sources

European Commission — Regulation (EU) 2024/1689 (Artificial Intelligence Act) (2024).

European Central Bank & European Banking Authority — Report on Payment Fraud (2025).

European Banking Authority — Digital Operational Resilience Act (DORA) framework (2024).

Financial Stability Board — Technology risk and AI monitoring in financial services (2025).

Bank for International Settlements — Artificial intelligence and financial stability publications (2025).

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