AI assistants can facilitate real customer relationships

Editor’s note: Our columnist had an opportunity to visit with Matt Phipps, the chief marketing officer for Agent IQ, which offers a bridge between digital convenience and personal service. Here is an edited version of their conversation..AI is starting to be marketed more frequently as “an assistant.” How might a community banker use AI in that way?Matt Phipps: Think of how a banker consults an experienced colleague for quick policy confirmations while remaining in control of the customer relationship. AI assistants work the same way, retrieving information in seconds rather than minutes. When a customer messages about refinancing, the AI surfaces rate sheets and policy details instantly, letting the banker focus on understanding the customer’s situation and providing personalized guidance.This matters because relationship banking has never been about information delivery. It’s about interpreting context. A customer asking about home equity rates might be dealing with medical expenses or planning a renovation. An AI assistant can’t discern that nuance, but an experienced banker can. AI eliminates the friction that prevents those deeper conversations.For community bankers, human interaction is a feature of their style of service. Do you think AI tools threaten the non-artificial relationships bankers strive to forge?M.P.: The real threat isn’t AI, it’s administrative burden. When bankers spend most of their time searching for information rather than connecting with customers, relationships suffer. When answering a simple question requires toggling between five systems, the opportunity for genuine connection evaporates.Remove that friction and everything changes. A customer messages about opening a business account. Without AI, the banker spends minutes locating requirements and fee schedules. With an AI assistant, that information surfaces instantly. Now the banker can discuss business plans, explore cash management options, and build a consultative relationship instead of a transactional one.The key is keeping humans in control. AI should never make credit decisions or handle sensitive situations independently. When AI stays in its proper role as assistant, it amplifies human strengths rather than replacing them.Can you give me some real world examples of how an AI assistant might help, say, a $850 million rural bank with two branches in Nebraska that mostly serves the ag industry?M.P.: In this scenario, a relationship banker may receive a message from a farmer asking about operating loan rates given commodity price volatility. Without AI, the banker needs 15 to 20 minutes to locate rate sheets, verify promotions, check policy memos, and consult the ag lending team. With an AI assistant, that banker queries: “Current operating loan rates for row crops, recent policy updates.” The system instantly surfaces rates, flags payment flexibility changes, and pulls handbook sections — all within seconds. Now the banker can respond immediately while discussing timelines and potential needs for crop insurance.Another example is a junior banker who gets a call about financing. Traditionally, they’d put the caller on hold or promise a call back. With AI, they instantly retrieve terms and qualifications, enabling an informed conversation while still involving senior lenders for credit decisions.These daily interactions either strengthen relationships or create friction. AI can’t replace agricultural expertise, but it eliminates administrative distractions that prevent bankers from applying it effectively. Ultimately, it’s about being able to help a customer when they need it; not when the bank can get around to it.What are regulators saying about all of this right now? Should a banker be worried about her use of AI unwittingly ruffling some regulatory feathers?M.P.: Regulators are less concerned about banks using AI assistants properly than about failing to control AI usage at all.Key regulatory principles should be, know what your AI does, control data access, ensure no bias, and maintain human oversight. An AI assistant that retrieves policy information doesn’t trigger heightened scrutiny because it’s supporting human decision-makers, not making decisions. Banks must manage AI risks rather than fear AI innovation.Community banks have limited resources to invest in tech. What’s your final pitch to community bankers on the fence about using AI tools to manage tasks?M.P.: First, if a banker spends 15 minutes searching for information per inquiry, handles 30 inquiries weekly, and you reduce search time by up to 90 percent, you’ve created 6 3/4 hours of capacity per week. Multiply across your team, and that’s like having additional employees. Second, community banks must focus on protecting their competitive position. Fintechs deliver instant responses because they’re tech-first. Megabanks invest billions in AI. Community banks competing on relationships can’t afford to be slow digitally. An AI assistant levels the playing field.Third, it’s also helping employees be more satisfied in their jobs. This is critical as banks struggle to attract and retain talent. Happy, fulfilled employees stay. Additionally, younger bankers, who grew up with AI as normal, are looking for modern tools to help them do their jobs. When they can't use basic AI tools at work, it signals the institution isn't keeping pace.