Experian’s 2025 U.S. Identity & Fraud Report finds AI is in use by more than one-third (37%) of surveyed service providers, but advanced technology has yet to outpace obstacles to adoption.

Identity theft is the single most frequently encountered fraud event by U.S. businesses at 39%, followed closely by transactional payment fraud, account takeovers and peer-to-peer payment scams, each at 37%.

Dealer- and finance source-facing AI tools are proliferating, promising next-generation car buyer engagement coupled with next-level fraud detection and prevention technology. Yet just 18% of surveyed consumers say they “completely trust” tools such as AI-powered chatbots.

“People want to know how AI is being used. Who’s training it? What data is being fed into it? What happens when it makes a mistake or has a hallucination?” analysts write. “To earn public trust, businesses must do more than adopt AI. They must educate, disclose and design with empathy.”

Read the full report at Experian