An evaluation of consumer protection laws in Zimbabwe in the advent challenges imposed by the use of artificial intelligence in the banking sector

Abstract

At the turn of the century‚ innovations surrounding digital technologies changed the face of doing business and took most businesses online for easier access and consumer reach. The next wave of digital disruption has unleashed artificial intelligence which enables machines to exhibit human-like cognition. The banking sector has been and continues to be one of the man sectors where the employment of artificial intelligence technologies has been on the rise. In the Zimbabwean banking sector context‚ the proliferation of artificial intelligence is in its infancy but has been rapidly increasing catalysed by the COVID19 pandemic. This research study provides an of consumer protection laws in Zimbabwe in the advent challenges imposed by the use of artificial intelligence in the banking sector. It has been widely accepted that while AI technologies and applications have the potential to address many of businesses' operational problems‚ it also comes with risks some of which are related to consumer protection. This study uncovers that this assertion is true. The qualitative study goes further to explore the specific challenges that consumers have been facing‚ are facing and are anticipated to face with the advent and increased uptake of AI within the Zimbabwean banking sector. With an acute understanding of the AI related consumer challenges‚ the study evaluates the adequacy of consumer protection laws in Zimbabwe in the advent challenges imposed by the use of artificial intelligence in the banking sector. Findings and results reveal that Zimbabwe’s consumer protection law landscape is rather comprehensive following the enactment of the Consumer Protection Act [Chapter 14:14] in 2019. Specific to the banking sector regulated by the Reserve Bank of Zimbabwe (RBZ)‚ the study also spotlights the RBZ Consumer Protection Framework developed in 2017. These two regulatory documents have implied application to artificial intelligence. They are ambiguous and general and therefore would fail to adequately provide for consumer protection in the context of artificial intelligence in the sector. The study concludes that there is need to facilitate for continued consumer protection through the regulation of the use of artificial intelligence within the sector. Within its conclusions and recommendations‚ the study underscores that reformation of consumer protection laws should be underpinned by increased education and awareness of artificial intelligence. Such an understanding would be foundational in ensuring that consumer protection law integrate the complexities brought on by artificial intelligence.