Hello! Welcome to Skit.ai. Click here to book a demo.

Conversational AI Can Help RCM Providers in Early-Out Collections and Here’s How

Early-out collections are a critical phase in which revenue cycle management providers aim to recover outstanding payments from patients within the initial 90-120 days post-bill creation. However, despite its significance, the early-out collection process presents challenges that can hinder the collection efforts and, ultimately, the RCM providers’ cash flow. 

In this article, we will explore how multichannel AI solutions can bridge the gaps, expedite collections for RCM providers, and improve the patient experience.

Too Little, Too Late: Why It’s Difficult To Execute a Timely Early-Out Campaign

The phase of early-out collections is crucial. Revenue cycle management (RCM) providers must collect outstanding debts from patients within 90-120 days. This is necessary to swiftly close dues and maintain a stable revenue stream. 

The challenge?

RCM providers face immense pressure to resolve outstanding self-pay dues, knowing that delays can have significant consequences. After the 90-day mark, unresolved self-pay dues may escalate to accounts being written off and passed to third-party collection agencies or legal firms, worsening the strain on an already fragile margin in a challenging market.

However, amidst the flurry of calls and the limited timeframe, RCM agents often struggle to connect with patients holding self-pay dues, managing only a few attempts below the optimal frequency needed for successful collections. RCM providers typically do not have enough agents to handle patient outreach at the scale required to execute an effective early-out campaign.

This issue is compounded by the perpetual rise in agent attrition, which not only hampers smooth operations and continuity, but also escalates the cost of recruitment and training, further squeezing RCM providers’ profit margins. 

Let’s have a look at the challenges in detail:

Inadequate Number of Follow-Ups

Revenue cycle management providers struggle to effectively engage patients despite most of the accounts being very recent, primarily due to limited scalability. This results in missed opportunities to resolve patient dues, ultimately leading to revenue losses.

Complex Bill Disputes

Patients frequently raise inquiries regarding their bills, requiring time-consuming interactions to address their queries and alleviate concerns. This intricate process demands significant time and resources from RCM providers to ensure accurate explanations and satisfactory patient resolutions. Addressing these queries is essential for maintaining transparency and trust in the healthcare providers.

Thin Margins

With the rise in popularity of high-deductible health plans (HDHP), many patients are left with significant self-pay dues. When patients are unable to complete their self-payments, healthcare providers are forced to write off these dues and a large share of their revenue, therefore affecting profit margins.


Most sectors are undergoing struggles related to staffing, caused also by high inflation rates. Revenue Cycle Management (RCM) providers are no different. Hiring channelges are worsened by increasing attrition rates and the expenses tied to hiring and training. This directly affects the efficiency of managing early-out collections and incoming patient inquiries, impacting profits and patient satisfaction.

Can Multichannel Conversational AI Help in Early-Out Collections?

The answer is yes.

But what exactly is Multichannel Conversational AI?  In simple terms, it’s a technology that leverages multiple channels like email, SMS, phone calls (Voice AI), and web chat to handlehuman-like, two-way conversations with consumers.

Multichannel AI offers a promising avenue to address the pain points in early-out collections and optimize revenue recovery efforts. 

Here’s precisely how Skit.ai’s Multichannel Conversational AI solution can help in early-out collections:

Scalable Automated Patient Outreach

Skit.ai’s AI bot can initiate personalized outreach to patients via multiple channels, such as phone calls (Voice AI), text messages, emails, and chatbots, ensuring effective communication and engagement from the outset. This ensures swift connection and meaningful engagement with patients and, at the same time, offers scalability to RCM providers to reach out to numerous patients in bulk.

Handle Payments and Inbound Queries

Skit.ai’s AI bot can authenticate patients, clarify bill breakdowns, answer patient queries, facilitate on-call payments and text-based payment links, and even set up payment plans, enhancing convenience and reducing barriers to receiving payment.

Improved Efficiency and Reduced Agent Costs

Skit.ai’s AI bot augments human efforts by automating repetitive and time-consuming tasks, enabling RCM staff to focus on resolving complex disputes and providing personalized patient assistance. This includes clarifying bills, patient follow-ups, payment assistance, and post-call activities.

How Will RCMs Benefit from Skit.ai’s Multichannel Conversational AI?

Now that we have explained in brief how Skit.ai’s multichannel conversational AI solution can help RCM providers expedite early-out collections, let’s look at how RCM providers can benefit from the adoption of this technology: 

Increased Cash Flow: Extensive outreach through multiple channels boosts patient engagement, leading to higher payment rates. 

Shortened Recovery Cycle: Targeted outbound campaigns powered by AI accelerate the collection process, improving cash flow. 

Reduced Charge-Offs: By minimizing the number of bills sent to collections, AI helps mitigate bad debt losses.

Solved Staffing Challenges: AI augments human resources, enabling RCM teams to handle larger volumes of accounts efficiently.

Cost Savings: Automation reduces operational expenses and maximizes revenue recovery, contributing to overall financial health.

The Effects on Patient Experience and Compliance Concerns

For healthcare providers,the patient experience is of utmost importance. From reaching out to patients regarding their self-pay dues to collecting payments, your technology partners must ensure that patients have a top-notch experience, and the same applies when they interact with Skit.ai’s virtual assistants.

With Skit.ai, RCM providers elevate patient experience by:

24/7 Inbound Support: Skit.ai’s bots can quickly clarify bill details, alleviating confusion and building trust among patients. Patient queries are promptly addressed whenever they reach out, be it on weekends or after work hours.

Multiple Channels: Patients expect and appreciate the flexibility to communicate through various channels according to their preferences. Skit.ai provides multiple communication channels that enhance engagement and cater to diverse consumer needs and preferences, fostering a positive customer experience.

Convenience: Seamless payment options (on-call and link-based payments) and quick responses to payment queries improve satisfaction and reduce friction in the billing process. Our bots can also negotiate payment plans and set up payment plans for ease of collection.

In addition to delivering exceptional patient experiences, we recognize the significance of compliance for RCM providers, particularly in handling patient information. That is why we are proud to comply with all federal and state regulations, including HIPAA, the TCPA,TCPA, HIPAA, and more; additionally, Skit.ai has data security certifications such as PCI-DSS, SOC 2 Type II, and ISO 27001:2022 


Integrating multichannel Conversational AI solutions into early-out collections processes offers a transformative approach for RCM providers. Conversational AI empowers RCM providers to navigate challenges effectively and achieve sustainable financial outcomes in a rapidly evolving healthcare landscape by addressing pain points, enhancing efficiency, and improving patient satisfaction.

Frictionless Debt Collection with Multichannel Conversational AI

Collecting delinquent debts from consumers has always been challenging for collection agencies, whether first- or third-party. Traditional debt collection methods often involve managing numerous accounts manually, which can be unreliable and lead to inefficiencies, delays, and customer dissatisfaction.

However, with the emergence of conversational AI automation, debt collection processes are undergoing a transformative shift. AI-powered multichannel communications is emerging as a powerful solution for the accounts receivables industry, offering a streamlined and compliant debt recovery process with an enhanced consumer experience.

In this blog post, we’ll discuss the ongoing shift toward multichannel communication and the impact these new tools have already had on many collection agencies.

What Is the Problem with Traditional Debt Collection Practices?

Traditional debt collection practices are slow and tedious. Most often they result in inefficiencies and delays. These methods lack flexibility and adaptability, hindering agents’ ability to address unique debtor situations effectively. Moreover, the manual nature of these practices increases the risk of errors and inaccuracies, further prolonging the debt collection process.

Diversified Communication Channels Are Essential

In today’s digital world, consumers expect and appreciate the flexibility to communicate through various channels according to their preferences. Offering multiple communication options not only enhances engagement but also caters to diverse consumer needs and preferences. For instance, some consumers may prefer only text messages or email communication for convenience, while others may only prefer phone calls.

Compliance Constraints Impact Engagement

Compliance regulations play a crucial role in debt collection practices, governing the frequency and manner in which collection agencies can contact consumers. Strict adherence to compliance guidelines is essential to avoid legal repercussions and maintain consumer trust.

However, compliance constraints can limit consumer outreach frequency, reducing engagement opportunities and debt recovery. 

Missed Payment Opportunities Due to Limited Agent Availability

The availability of agents is a critical factor in debt collection operations. However, agents cannot be available round-the-clock to address consumer queries and concerns. As a result, collection agencies may miss out on payment opportunities when consumers reach out for assistance during off-hours or weekends. 

Elevated Collection Costs

Traditional debt collection methods often incur high operational costs due to extensive manual processes and resource-intensive workflows. These costs include expenses related to manpower, infrastructure, training, and compliance. High attrition rates further exacerbate operational challenges, as collection agencies must invest in recruiting and training new agents to maintain workforce consistency. Non-compliance with regulatory requirements can result in hefty fines and penalties, adding to financial burdens.

Understanding Debt Collection With Conversational AI

Automated debt collection involves using conversational AI software to contact consumers (inbound or outbound) and optimize debt collection at various stages. Organizations can automate numerous stages of debt collection such as consumer outreach, right-party contact verification, payment reminders, negotiation, on-call payments, follow-ups, and answering queries; with conversational AI.

This can help improve the efficiency and effectiveness of debt collection processes, leading to better financial outcomes for the organization and the customers.

What Is Multichannel Conversational AI?

Multichannel communication is a critical component of automating debt collections through AI. Multichannel communication refers to the use of multiple channels, such as email, SMS, phone calls, and webchat, by collection agencies to engage with debtors. By utilizing multiple channels, AI-driven systems can effectively reach debtors, providing convenient avenues for them to address and resolve their outstanding debts. 

This multichannel approach caters to consumer preferences by offering a range of communication options, ensuring that each consumer can engage using their preferred channel. Furthermore, this strategy is context-based, meaning consumers can seamlessly switch between channels without losing the context of their previous interactions.

How Does Multichannel Conversational AI Help in Debt Collection?

The debt collection software market has been growing steadily, with most agencies adopting conversational AI to automate their processes and become more efficient while reducing collection costs. The debt collection software industry is expected to reach USD 2045.6 million by 2030. The industry is also anticipated to see further growth with a CAGR of 9.2% in the near future, especially with the emergence of LLMs (large language models) like ChatGPT.

Tailoring Communication to Preferred Channels for Increased Engagement

Reaching debtors through their preferred mode of communication ensures personalized interaction. Understanding that not everyone may be available for phone calls, leveraging various channels allows agencies to effectively engage consumers in ways that resonate with them. This becomes particularly relevant in the wake of the digital shift witnessed post-COVID-19. Embracing multichannel communication expands opportunities for engagement, aligning with evolving consumer behaviors and preferences.

According to a case study by Salesforce, a debt collection agency achieved a 12% increase in its collection rate by implementing personalized communication strategies tailored to customer personas. AI algorithms, debtor data, and consumer behavior are analyzed to customize communication approaches. 

Improved Collections with Enhanced CX

Agencies increase contact rates and engagement levels by leveraging multiple communication channels. This improved communication in turn fosters a positive customer experience, as debtors receive timely resolutions and responses. Enhanced customer experience facilitates debt resolution and strengthens the agency’s reputation and customer relationships.

Compliance and Risk Mitigation

Utilizing a multichannel approach for debt collection not only promotes efficiency and effectiveness but also helps businesses comply with evolving regulations in a fast-changing industry. Every communication is documented and traceable and remains within regulatory limits with centralized consumer interactions.

Agencies can stay compliant in many ways with the multichannel approach for communication with consumers. For instance, the 7-in-7 rule mandates that debt collectors cannot contact consumers more than seven times within seven consecutive days. Similarly, the Mini Miranda rule stipulates that collectors must disclose their identity and the purpose of their communication during contact. 

Agencies can drive campaigns through various channels, stay compliant with these laws, or even efficiently track and regulate outreach frequencies with each consumer.

Managing Inbound Queries and Ensuring 24/7 Availability

Multichannel communication ensures that consumer queries are promptly addressed whenever they reach out be it on weekends or after work hours. Whether it pertains to payments or other inquiries, AI software can answer consumer queries, ensuring zero wait times and seizing every collection opportunity. Chat options provide consumers with a self-serve menu, enabling them to address basic FAQs and clarify queries easily.

Cost of Collection

Multichannel conversational AI significantly reduces the cost of collection by streamlining workflows, optimizing agent bandwidth, and minimizing manual intervention. By automating repetitive tasks and leveraging multiple communication channels, AI-driven software enhances operational efficiency and reduces overhead costs associated with debt collection processes.

The Impact of Multichannel Conversational AI Automation on Debt Collection

Collection agencies have observed significant impacts on their collections through multichannel conversational AI.


Automated multichannel conversational AI represents a shift in debt collection practices, offering agencies the tools and capabilities to streamline processes, enhance customer experiences, and drive better outcomes. 

Agencies can achieve higher contact rates, personalized interactions, and improved efficiency, ultimately leading to faster debt recovery and increased profitability; by leveraging AI-powered systems to automate communication across multiple channels. As the debt collection landscape evolves, organizations embracing multichannel conversational AI will position themselves for long-term success.

Automate Early-Out RCM Collections with Conversational AI

The complex world of healthcare revenue cycle management (RCM) and patient billing is evolving rapidly. New digital tools are enabling providers to tackle early-out collections, prevent charge-offs, and improve recovery strategies. For healthcare organizations’ patient billing and RCM providers, early-out collections are a crucial piece of the patient billing puzzle, and AI is here to help.

By contacting patients early and kindly after sending a bill, early-out practices encourage patients to make a payment before the bill is charged off and handed over to collections. This practice can significantly improve an organization’s cash flow as well as the customer experience. However, RCM businesses and divisions often lack the necessary resources to consistently implement early-out collections on a widespread scale.

In this article, we’ll explore how Conversational AI technology can streamline the revenue cycle management (RCM) process. This technology can significantly reduce the revenue cycle duration by automating two-way, human-like conversations with patients, engaging them effectively, and sending reminders through a multichannel approach. Ultimately, these advancements aim to enhance profit margins for healthcare providers.

Early-Out Collections for Healthcare RCM and Billing: Common Challenges and Pain Points

Early-out collection practices help prevent bad debt, encouraging patients to pay their bills in a timely manner. From the provider’s perspective, early-out practices help improve cash flow through revenue recovery.

However, that’s easier said than done. Here are some of the most common challenges and pain points faced by healthcare RCM and patient billing providers:

Patient outreach and follow-ups: The recentness of the bills presents an opportunity for collectors since the consumer is usually easier to reach. But to accomplish the goal, patients must be contacted timely and regular follow-ups must be conducted. The need for multiple engagements and touchpoints can represent a challenge when your business doesn’t have enough staff to handle all these calls manually.

Agent staffing: Agent bandwidth and staffing present a serious challenge for RCM providers. In the last few years, hiring and retaining staff has become very expensive for businesses, with attrition and training costs adding to the strain.

Thin profit margins: Due to low payments and high expenses, RCM businesses are seeing their profit margins shrink. Additionally, due to the rise of High Deductible Healthcare Plans, the average balance of self-pay accounts is higher, making it more difficult for patients to complete their minimum deductible payments.

Debt breakdowns and complex disputes: Patients may inquire into bill breakdowns and insurance intricacies. RCM agents are required to provide the bill breakdown, adding an extra layer of complexity to the recovery cycle.

Long recovery cycles: When it comes to healthcare bills, the clock ticks due to stringent deadlines. Failure to meet these deadlines will cause the bills to go delinquent. If insurance billing is not closed within 90 days of bill generation, insurers can reject any claims against the accounts later, impacting the healthcare provider. When the bill goes to collections, the involvement of third-party collection agencies will reduce the RCM provider’s margins. Additionally, if too many bills are charged off, the healthcare provider will likely stop working with the RCM provider.

What Is Multichannel Conversational AI for Patient Billing Collections

RCM providers are no strangers to software that can simplify and automate many day-to-day tasks. Conversational AI powered by large language models can transform early-out patient billing collections by automating patient outreach through multiple channels, such as phone calls, text messages, emails, and chatbots.

Outbound collections with intelligent bots enable RCM providers to reach as many patients as needed, engage them in human-like conversations, and encourage them to make a payment. This approach allows for effective patient outreach while optimizing the collection process and generating cash flow. Here’s what a bot can do:

  1. Initiate a call or send a text message to engage the patient.
  2. Authenticate the patient by verifying their identity.
  3. Provide bill breakdown and answer questions.
  4. Collect payments on-call or direct patients to a payment portal.
  5. Set up payment plans when needed, especially for high-amount bills.
  6. Transfer the call to a live agent when requested.

Skit.ai’s solution is compliant with all federal and state regulations, including the following laws: TCPA, HIPAA, and more.

The Benefits of AI in Early-Out Collections

Collect more payments: With Conversational AI, you can automate and schedule patient outreach at the right time and using multiple channels (e.g., phone and text messaging). This extensive outreach will generate more engagement and connectivity, driving more timely payments to your business.

Shorten the recovery cycle: Targeted outbound campaigns powered by AI will shorten the average recovery cycle, boosting cash flow.

Reduce charge-offs: Early-out collections enable you to reduce the number of charge-offs, i.e., bills that go into collections and become bad debt. Avoiding charge-offs will help you avoid additional headaches.

Solve staffing challenges: AI is not here to substitute humans but to augment their work. By adding AI to your current team, you’ll help them focus on disputes and complex cases and enable them to service a larger number of bills.

Save $$$: Leveraging artificial intelligence and automation can significantly drive down expenses and help you promote a healthy flow of payments.

Are you interested in learning how Skit.ai’s suite of multichannel solutions can benefit your business? Click here to schedule a consultation with one of our experts.

The Debt Collection Industry Is Going Multichannel with AI: Here’s Why

Over the past two years, the accounts receivables industry underwent a notable transformation, marked by a booming demand for AI and digital solutions in what has traditionally been a cautious marketplace. At Skit.ai, we witnessed and helped drive this shift.

Over 70 U.S. third and first-party debt collection agencies and lenders have adopted our Voice AI solution to automate collection calls and augment the work of live agents. As we approached this milestone, we became aware of a growing demand for more: more automation, more channels. While phone calls, whether manual or led by artificial intelligence, are still essential to any debt collection strategy, we’ve been seeing demand for additional channels to engage and interact with consumers.

The research supports this shift. A McKinsey study found that reaching out to consumers through their preferred digital channels boosts payment results. Traditional contact strategies, such as phone calls, letters, and voicemails, may still be prominent, but consumers often prefer to be contacted via digital channels, such as email and text message, especially among younger demographics.

Leveraging a Multichannel Strategy for Better Consumer Engagement and Recovery

Multi- and omnichannel strategies are not new and have already been successfully adopted in customer service, marketing, and retail; they are now coming to the accounts receivables industry, promising to accelerate collections processes and improve consumer engagement.

The use of digital channels to perform activities such as opening a bank account, applying for a credit card, applying for loans, and managing investments is virtually ubiquitous in today’s society. It’s only about time that the collections industry offers consumers those same digital channels to engage with lenders and collectors.

A multichannel strategy caters to consumer preferences by offering multiple communication channels, such as voice, chat, email, and text messaging, both for outbound and inbound interactions, so that each consumer and demographic can interact using the channel of their choice. A multichannel strategy is context-based, meaning that consumers can utilize any channel without losing the context of their previous interactions.

For outbound use cases, a multichannel strategy enables consumers to engage through multiple communication channels at all stages of the delinquency cycle, maximizing account penetration and ensuring compliant outreach frequency through rigorous compliance filters. The technology offers the ability to follow up with unengaged consumers via new channels for incremental penetration.

For inbound use cases, the case for multichannel is just as strong, as it enables companies to offer 24/7 availability, including nighttime, weekends, and holidays, eliminate wait times, and never miss a payment opportunity.

The Success of Voice AI in the Collections Industry

Traditional communication channels such as phone calls are not always working, especially among younger demographics. Different consumers prefer to utilize different channels; now is the time to start tapping into the unimaginable potential that AI-powered conversations can offer.

The success of Voice AI in the accounts receivables industry has shown that consumers are comfortable with the use of bots to resolve debts, and in some cases prefer interacting with a bot rather than a human. Voice AI is far more intelligent than legacy IVR systems, which are unable to handle multi-turn, two-way interactions in a way that is comparable to human conversations. Thanks to technological advances in speech recognition, natural language understanding, and the advent of large language models, Conversational AI has made IVRs a thing of the past.

But Conversational AI has more to offer beyond automated voice conversations—there are chatbots, SMS bots, and email bots, and in a digital-first landscape that highly favors self-service portals, consumers are eager to adopt these additional channels in their interactions with lenders and collectors.

Financial services organizations that have embraced a multichannel strategy have already seen significant success in their collection efforts. By offering consumers the flexibility to interact through various channels, these businesses cater to individual preferences and facilitate more positive interactions. One of our clients saw a 213% boost in recoveries after augmenting their voice-only strategy with additional AI channels.

Paving the Way for Consumer-centric Collections

The relationship between ARM organizations and consumers is evolving. Technology is playing a pivotal role in ensuring that this evolution benefits both parties involved. A multichannel strategy is not about replacing human interactions; it’s about enhancing it by offering multiple touchpoints that meet the diverse needs of consumers and optimizing the resources available to collection entities.

By leveraging cutting-edge technology, businesses can pave the way for a more consumer-centric approach to debt collection, one that is efficient, compliant, and effective. Thanks to the benefits provided by various communication channels, lenders and collection agencies can personalize campaigns, streamline processes, and ultimately improve business results.

Do you want to learn how you can optimize your business with Conversational AI? Use the tool below to schedule a free demo with one of our experts.

How Is the ARM Industry Adopting AI?

The term “AI” is being thrown around a lot these days. Anyone and everyone is trying to integrate AI into their businesses. Similarly, the debt collection industry has adopted AI and is catching on quickly. From automation to data analytics, AI has taken over the ARM space. However, there’s often a lack of understanding about the fundamentals of this emerging technology.

Recently, Skit.ai hosted a panel discussion in collaboration with Accounts Recovery.net. The discussion featured four renowned experts: Heath Morgan of Martin Golden Lyons Watts Morgan, Lucas Brown of NLP Logix, and Amit Ambre of Skit.ai, who answered pressing questions related to AI and its impact on the ARM industry.

The panel covered topics such as the various types of AI and their applications in the industry, compliance regulations for AI, the use of LLMs for improved customer experiences, and the advantages of agencies using AI—the discussion aimed to help non-IT professionals better understand AI technology and its potential benefits for collections.

In this article, we’ll revisit some of the insights from the event.

Understanding the Different Types of AI and What They Are Doing for the ARM Industry

So, What Exactly Is Artificial Intelligence?

“The evolution of AI has been a long time in the making. At its core, AI refers to computers mimicking human behavior, but it’s a broad concept with many applications and iterations over the years. We can even trace the roots of AI back to early statistical methods like linear regression.” — Lucas Brown, Senior Data Science Advisor for NLP Logix.

“The recent boom in computing power is the real game-changer. It’s not just storage; advancements in transformers, neural networks, and deep learning have enabled AI to learn and adapt, exceeding mere information processing. AI can now predict text or anticipate actions with human-like skills. This adaptability is why AI creates such a stir – a stark contrast to its earlier limitations.” — Amit Ambre, VP at Skit.ai.

“Previously, AI was primarily used at the enterprise level by companies like IBM Watson. However, with the release of tools like ChatGPT a year and a half ago, AI became available to individual consumers and developers. This open approach, where users could experiment and find their applications, led to rapid adoption. This shift in accessibility, with tools available for free or at low cost, has flooded the market in the last year.” — Heath Morgan, Attorney, and Partner, Martin Golden Lyons Watts Morgan.

ChatGPT, Machine Learning, Robotic Process Automation, Chatbots… Are all of those different types of AI?

“From a holistic perspective, when forming an AI policy or committee, it’s wise to encompass everything under the “AI umbrella” initially. Then, as you delve deeper, you can determine if you’re dealing with a true black box algorithm, a generative process, or something more akin to a rule-based system.” — Heath Morgan, Attorney and Partner, Martin Golden Lyons Watts Morgan.

“AI is a broad term. While ML focuses on building algorithms that can be trained to predict future actions or outcomes, RPA, in its technical sense, deals with coding specific processes to be replicated in the same way repeatedly. Machine learning can adapt. Deep learning is a further subset of machine learning. Transformers allow deep learning models to work with unlabeled data, come up with a model, and then be further refined for specific tasks. This is how large language models (LLMs) came into play.” — Amit Ambre, VP at Skit.ai.

What are the Types of AI Available for the ARM Industry?

The ARM industry is embracing AI to streamline processes and improve efficiency. This technology takes a few forms: AI can analyze vast amounts of data to predict a debtor’s likelihood to repay, allowing collectors to prioritize their efforts. AI-powered bots can handle initial contact with debtors, answer questions, and facilitate payment arrangements. Additionally, AI can sift through documents and communications, extracting key information and identifying the best course of action for each case.

“Let’s categorize the four main types of AI technology impacting our industry. 

Here’s a high-level breakdown:

  1. Data Monetization: This involves maximizing the value of the data we collect, including data collection itself.
  2. Generative AI: This technology can generate content, answer questions, or create new data points.
  3. Robotic Process Automation (RPA): RPA automates repetitive tasks, improving efficiency.
  4. Conversational AI: This allows for interaction with machines using natural language.

These four categories are seeing significant adoption and impacting the debt collection space.” — Heath Morgan, Attorney and Partner, Martin Golden Lyons Watts Morgan.

How Much Better Is a Collection Agency Using AI Doing vs. an Agency That Is Not?

According to the report on “Next-gen Collections Contact Strategy” by BCG, financial institutions using AI have seen:

“I can’t put a number on it, but I’ll break it down into 3 categories:

1) In agencies where account penetration is a problem, Conversational AI can ramp up the scale and achieve maximum account penetration. Agencies with 70-80% untouched accounts leveraged conversational AI to boost collection rates by 30-40%

2) Inbound bots with 24/7 availability for non-working hours are another impactful application. They address the challenge of missed opportunities to speak with consumers and collect payments.

3) Improving Scoring strategy: AI can incorporate a wider range of parameters to predict who to contact and the most effective communication channel and strategy, leading to greater payment predictability and a 10-20% collection rate jump in some cases.”  — Amit Ambre, VP at Skit.ai.

“AI adoption requires a scientific approach. Test your ideas, challenge assumptions, and be skeptical. This helps you adapt faster – to new projects, changing customers, or internal shifts. You’ll integrate models quicker, identify consumer behavior changes faster, and adjust more efficiently. A culture of scientific exploration is key to successful AI adoption.” — Lucas Brown, Senior Data Science Advisor for NLP Logix.

“AI should be seen as a digital assistant, handling mundane tasks and freeing employees to focus on higher-level work. This approach creates a co-working environment where humans and AI work together. Employees will upskill to become data-driven decision-makers, leveraging the insights generated by automation and AI.” — Heath Morgan, Attorney and Partner, Martin Golden Lyons Watts Morgan.

How does the new FCC ruling affect the use of AI bots? 

With the newest FCC language classifying AI Bots as pre-recorded, how does this impact compliance when using services like Skit.ai or other AI-powered outbound calling systems? 

On February 8, the Federal Communications Commission (FCC) unanimously adopted a Declaratory Ruling stating that calls made with AI-generated voices are “artificial” under the Telephone Consumer Protection Act (TCPA). The Ruling clarifies the Commission’s intent to further regulate the use of voice cloning technology used in connection with robocall scams targeting consumers.

Can third-party AI integrate with multiple collection systems for comprehensive reporting? Are there any existing AI-powered reporting systems? 

“I don’t think you need AI for this. All you need is a well-defined process – a human demonstrates the steps, and Robotic Process Automation (RPA) can automate it.”   — Heath Morgan, Attorney and Partner, Martin Golden Lyons Watts Morgan.

“In the past, you needed a data engineer who would code for you. Now, there’s a plethora of tools, some potentially leveraging AI, that can streamline this process. These low-code/no-code options empower you to build the pipeline without extensive coding expertise.” — Lucas Brown, Senior Data Science Advisor for NLP Logix.

Should You Be Using ChatGPT To Write Responses to Written Consumer Complaints?

“One of the most critical ones is protecting confidential consumer information (PII). When using a service like ChatGPT, you’re essentially disclosing information to a third party. While you might be able to pay for some level of privacy, you lose control over deleting or managing that data. That being said, with proper safeguards in place, using ChatGPT as a tool within the customer complaint response process can be a viable option.”  — Heath Morgan, Attorney and Partner, Martin Golden Lyons Watts Morgan.

“ChatGPT presents a data privacy concern. Any information you input can be considered public. It all goes into a database, and you relinquish control over it. This lack of control can lead to various challenges down the line.” — Lucas Brown, Senior Data Science Advisor for NLP Logix.

“You can use it to make the process more efficient. If it’s an activity that involves 10-20 people, it might make sense to build your own model to monitor the responses. Just keep data confidentiality under control.” — Amit Ambre, VP at Skit.ai.


“The rapid evolution of AI, with future advancements (GPT-5.0) on the horizon, presents a significant opportunity. Each iteration brings remarkable improvements in capability. The key takeaway is for every agency, vendor, and company to embrace AI. This involves understanding how to best integrate AI technologies across various processes, adhering to compliance boundaries, and fostering a culture of continuous learning within your organization to maximize the benefits of AI.” — Amit Ambre, VP at Skit.ai.

“The vast potential of AI applications can be overwhelming. Remember, there’s a spectrum of options. Some require significant organizational changes and investment, while others offer easier adoption and lower costs.  The key is to find those “sweet spots” – opportunities where you can experiment with AI at a low barrier to entry.  These initial successes can then become the springboard for further AI adoption within your organization.” — Lucas Brown, Senior Data Science Advisor for NLP Logix.

“AI adoption is a two-way street: intentional or unintentional.  Without a clear AI policy, you risk employees and vendors using AI tools without your knowledge.  Do you want unregulated AI use or a policy that dictates how employees can leverage this technology?  An AI policy is essential for intentional AI adoption within your organization.”  — Heath Morgan, Attorney, and Partner, Martin Golden Lyons Watts Morgan.

Use the chat tool below to book a demo or learn more about Skit.ai’s Conversational AI solutions.

Don’t Miss a Single Collection Opportunity with 24/7 Inbound Support

By definition, debt collection agencies tend to make outbound outreach the focus of their recovery strategy. Contact consumers, remind them of their due balances, and collect payments. Whether it’s manual or automated, outbound outreach is at the core of what a collection agency does. But inbound calls from consumers can easily represent a dangerous blind spot resulting in a significant loss of revenue.

Every time a consumer calls your collection agency and their call goes to your voicemail or to an inconvenient IVR menu, you lose an opportunity to collect a payment.

The statistics are sobering. Agencies can lose up to 14% of their collection opportunities whenever inbound calls route to voicemail or drop due to the absence of an available agent. At Skit.ai, we reviewed data on inbound consumer calls provided by one of our partnering agencies prior to the adoption of Skit.ai’s solution.

In this article, we’ll discuss our findings and how our Multichannel Conversational AI solution can help agencies solve this issue.

Why Consumers’ Voicemail Messages Equal Margin Losses

Inbound calls lead to several challenges for collection agencies, especially those without a large team of live agents on the floor.

Inability to answer inbound calls 24/7: Agencies tend to receive many inbound calls from consumers outside of business hours—in the evening or during the weekend. While these are times when agencies don’t have staff available to answer calls, they’re also the times consumers tend to be free. According to the data we reviewed, as many as 43% of your inbound calls may be coming outside of operational business hours.

Limited staffing and resources: For several years, agency executives have been grappling with the challenges related to hiring and retaining agents and collectors. Given the limited resources most agencies have, it’s likely that agents may not be able to answer an inbound call also during business hours.

Call volume is not uniformly distributed throughout the day: 20% of inbound voicemail messages were received during business hours when inbound calls were at their peak and there were not enough agents to handle all the traffic. For example, 4:00 p.m. to 8:00 p.m. tends to be the busiest time of the day for agencies, according to our research.

In the graphic below, you can see an example of inbound traffic on an average day, showing that call volume is not uniformly distributed:

Multichannel AI: Never Miss an Inbound Call

The idea that your business is not able to operate 24/7 is wrong and outdated. To never miss a single inbound call, automation through artificial intelligence is the answer. AI–enabled platforms present a practical and innovative solution to provide round-the-clock inbound support.

Multichannel AI provides human-like conversations via multiple communication channels, such as phone calls, text messages, web chat, and email, enabling your consumers to contact your business at any time of the day or night and to always get an answer.

Here are the capabilities of a multichannel bot for inbound use cases:

Intelligent, two-way conversations: A virtual assistant or bot can handle human-like, intelligent conversations that are multi-turn.

Unlimited, simultaneous conversations: Conversational AI can handle as many conversations as needed simultaneously, solving the issue of traffic volume for agencies and lenders.

Right-party contact automation: Automate simple and repetitive tasks such as right-party contact verification.

Provide information and answer questions: The virtual assistant will be able to answer common queries, and provide information on the outstanding debt or balance.

Payment automation: The bot can easily collect payments during the interaction via an integrated payment gateway.

Benefits for Collection Agencies with Conversational AI

Automating inbound calls and communications can save collection agencies and creditors a lot of money, enablign them to seize more recovery opportunities.

No more traffic bottlenecks: Solve traffic bottlenecks with Conversational AI, eliminating wait times.

No more inbound voicemails: Setting up a voicemail for inbound calls is likely to kill many recovery opportunities. Instead, allow your consumers to chat with your bot to get the assistance they need right away.

No more IVR drop-offs: IVR menus force consumers to listen to many irrelevant options and make their way through complicated IVR trees, resulting in high drop-off rates.

When automating inbound communications with Conversational AI, at Skit.ai we’ve seen the following results:

  • 2X boost in connectivity
  • 25% reduction in live agent time investment
  • 20% increase in agent productivity
  • 25% boost in right-party contact (RPC) rate
  • Up to 20% increase in promise-to-pay (PTP) rate
  • 10X ROI

Benefits for Consumers with Multichannel Conversational AI

Multichannel Conversational AI also elevates the user experience for your consumers, making their debt resolution easier and faster. While customer experience (CX) might not always be top of mind for collectors, Conversational AI does provide many benefits for consumers:

Consumers utilize their preferred channel: Every individual prefers to communicate through a different channels. Some may prefer to speak over the phone, others may prefer to text via SMS. Offering multiple channels enables consumers to utilize whatever method of communication they feel most comfortable with.

Are you ready to automate your inbound operations with multichannel Conversational AI? Use the chat tool below to schedule a meeting with one of our experts to learn how your can optimize your collection strategy.

Skit.ai Secures SOC 2 Type II Certification, Affirming Commitment to Data Security

NEW YORK, NY (April 3, 2024) — Skit.ai, the leading provider of multichannel Conversational AI solutions for the accounts receivables industry, announced today the achievement of SOC 2 Type II compliance certification. This milestone reaffirms Skit.ai’s utmost commitment to information security for its clients and its platform.

“The SOC 2 Type II compliance certification reflects our dedication to upholding the highest data security standards on behalf of our clients and all consumers engaging with Skit.ai’s multichannel Conversational AI solutions,” said Sourabh Gupta, founder and CEO of Skit.ai.

The SOC 2 Type II audit evaluated Skit.ai’s controls and processes related to security, availability, process integrity, and confidentiality, including the suitability of the design and the operating effectiveness of all controls. The report typically evaluates a company’s controls over the course of several months.


About Skit.ai:

Skit.ai is the accounts receivables industry’s leading Conversational AI solution provider, empowering collection agencies and creditors to automate collection conversations and accelerate revenue recovery. Skit.ai’s suite of multichannel solutions—featuring voice, text, email, and chat powered by Generative AI—interacts with consumers via their preferred channel, elevating consumer experiences and boosting recoveries. Skit.ai has received several awards and recognitions, including Stevie Gold Winner 2023 for Most Innovative Company by The International Business Awards, Disruptive Technology of the Year 2022 by CCW, and Gold Globee CEO Awards 2022. Skit.ai is headquartered in New York City, NY. Visit https://skit.ai/ 

For media inquiries, please contact: media@skit.ai