Kenyan financial service providers and telecommunication firms are increasingly adopting artificial intelligence (AI) and machine learning (ML) to enhance customer engagement and boost revenues, transforming traditional customer interaction dynamics. This shift, while promising significant improvements and cost savings, also raises concerns about potential algorithmic biases and the need for stronger consumer protection.

• Safaricom PLC reported a 10.5 percent growth in customer numbers and M-Pesa Super App generated Sh6 billion in revenue, driven by AI-powered customer segmentation.
• KCB Group utilizes AI for decision-driven data analytics, lead generation algorithms, and tailored behavioral scoring models to expand digital lending and analyze customer feedback.
• The deployment of AI and ML is expanding beyond financial services to sectors like health, insurance, and aviation, with billions projected in future investments due to cost savings and increased earnings.
• Concerns exist regarding significant gaps in consumer protection safeguards and risks like algorithmic biases, cultural under-representation, and potential misuse by malicious actors, as highlighted by Anthropic's detection of an AI-coordinated hacking operation.