AI in Financial Services Operations

  • Release version: Australia
  • Updated March 12, 2026
  • 4 minutes to read
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    Summary of AI in Financial Services Operations

    Financial Services Operations (FSO) in ServiceNow leverages artificial intelligence (AI) and agentic AI to enhance front and back office tasks, particularly in dispute management and customer interactions. Key capabilities include summarizing case details for insurance claims or card disputes, integrating Virtual Agent chatbots for dispute intake, and automating dispute resolution workflows.

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    Key Features

    • Case Summarization: AI summarizes details of cases such as insurance claims and card disputes to streamline processing.
    • Virtual Agent Integration: Chatbots guide customers through dispute intake, incorporating card network and issuer policies, and auto-populate case forms based on customer responses.
    • Agentic AI for Friendly Fraud: AI agents analyze flagged transactions using friendly fraud detection tools, generate action recommendations, and assist in drafting explanations for rejected transactions.
    • ACH Dispute Resolution: AI agents support the resolution of ACH dispute cases.
    • Customer Interaction Support: AI skills and agents enhance front-office customer interactions and help uncover customer insights.
    • Data Privacy: Sensitive and personally identifiable information is masked in AI prompts to protect data privacy, ensuring compliance with data handling regulations.

    Important Considerations

    • AI features and access depend on your ServiceNow license and product tier.
    • ServiceNow Otto should not be used for processing protected health information (PHI) or in regulated industries without validation and testing aligned with industry requirements.
    • Availability of AI models and features varies by region and compliance environment; some are restricted in FedRAMP, NSC DOD IL5, Australia IRAP-Protected data centers, or regulated markets.
    • AI outputs may not always be accurate or complete; human oversight and testing are essential, especially in high-impact domains such as finance and healthcare.
    • Data used by AI is transferred to centralized ServiceNow environments and may involve third-party cloud providers under strict compliance policies.
    • ServiceNow collects usage data to improve AI technologies, with customers able to opt out of data collection as needed.

    Practical Impact for ServiceNow Customers

    By utilizing AI capabilities within Financial Services Operations, customers can expect more efficient dispute intake and resolution processes, improved accuracy in case summarization, and enhanced customer service interactions. These AI-driven enhancements help reduce manual effort, accelerate decision-making, and maintain compliance with sensitive data protections. Customers should ensure proper license entitlements and validation steps to safely implement AI features aligned with their regulatory environment.

    Financial Services Operations has AI skills and agentic AI to support front and back office tasks. Users can summarize case and customer details, enhance disputes intake with Disputes intake via Virtual Agent, and use agentic workflows and AI agents to automate dispute resolution.

    Overview of AI capabilities in FSO

    Use AI in FSO to do the following:
    • Summarize the details of a case for an insurance claim or a card dispute.
    • Use a Virtual Agent chatbot as part of the customer dispute intake flow. Card network and issuer policies are integrated in the chatbot conversation. Information on the dispute is gathered and inferred from the customer's responses and populated in case form fields.
    • Use agentic AI to assist dispute agents in handling transactions that are flagged as friendly fraud. The AI agent leverages the results from a friendly fraud detection tool to generate recommendations the appropriate action. If the transaction is rejected, it also helps draft a rationale to explain the decision to the end user.
    • Use AI agents to resolve ACH dispute cases.
    • Use AI agents and AI skills to support customer front-office interactions, and to discover customer insights.

    For a full list of all AI skills, AI agents, and agentic workflows in FSO, see AI capabilities in Financial Services Operations.

    Other AI features and skills are also available in ServiceNow Otto and ServiceNow Otto for Customer Service Management. For more information, see Enable AI experiences and .

    Note:
    Depending on your license, you will have access to certain application features, generative AI skills, agentic workflows, and AI agents. For more information, see ServiceNow product tiers.

    Sensitive data handling and masking

    Personally identifiable information and other sensitive data can be masked so that it doesn't appear in generative AI prompts. Placeholder text is sent with the prompt instead, and that placeholder text is replaced with the original text after the response has been received. This two-way masking ensures that your users see the correct values, but the LLM provider isn't exposed to any sensitive information. For more information, see .

    Important:
    Exercise caution when using ServiceNow Otto with cases that contain sensitive data or other regulated workloads, such as healthcare claims. ServiceNow Otto should not be used for processing protected health information (PHI). When using ServiceNow Otto in a protected industry, validate and test the generated results in accordance with corresponding legislation and requirements. See AI limitations for more information.

    Federal exclusion notice

    Important:
    • Not all model providers are available for customers with in-country SKUs, and some AI products/features are currently unavailable for in-country customers. For more information, see the KB1584492 article in the Now Support Knowledge Base. Be sure to check for model provider availability updates in future releases.
    • Some AI products/features are currently unavailable for customers in the FedRAMP, NSC DOD IL5, or Australia IRAP-Protected data centers, self-hosted customers, or in other restricted environments. For more information, see the KB0743854 article in the Now Support Knowledge Base. Be sure to check for availability updates in future releases.
    • Some AI products/features are currently available only for customers in some regions. Be sure to check for availability updates in future releases.
    • Some AI products and skills are not available in Regulated Markets. For more information, see KB2593939: Regulated Markets AI Products/Skills Not Available. Be sure to check for availability updates in future releases.

    AI limitations

    This application uses artificial intelligence (AI) and machine learning, which are rapidly evolving fields of study that generate predictions based on patterns in data. As a result, this application may not always produce accurate, complete, or appropriate information. Furthermore, there is no guarantee that this application has been fully trained or tested for your use case. To mitigate these issues, it is your responsibility to test and evaluate your use of this application for accuracy, harm, and appropriateness for your use case, employ human oversight of output, and refrain from relying solely on AI-generated outputs for decision-making purposes. This is especially important if you choose to deploy this application in areas with consequential impacts such as healthcare, finance, legal, employment, security, or infrastructure. You agree to abide by ServiceNow’s AI Acceptable Use Policy, which may be updated by ServiceNow.

    Data processing

    This application requires data to be transferred from ServiceNow customers' individual instances to a centralized ServiceNow environment, which may be located in a different data center region from the one where your instance is, and potentially to a third-party cloud provider, such as Microsoft Azure. This data is handled per ServiceNow's internal policies and procedures, including our policies available through our CORE Compliance Portal.

    Data collection

    ServiceNow collects and uses the inputs, outputs, and edits to outputs of this application to develop and improve ServiceNow technologies including ServiceNow models and AI products. Customers can opt out of future data collection at any time, as described in the Now Assist Opt-Out page.

    For more information, see the Now Assist documentation.