Westpac has launched groundbreaking artificial intelligence technology designed to help its customer service teams identify and stop scams as they happen during phone conversations with customers.

The realtime call assistant, described as a first of its kind in Australia, analyzes customer phone conversations as they occur and provides live alerts to bank operators when potential scam indicators are detected. The system is currently being tested within Westpac's specialist scam and fraud team.

The AI tool creates live transcripts of calls and offers suggested questions to help customer service representatives determine if a caller may be falling victim to fraud. It can even detect instances where scammers may be coaching customers in the background during calls.

"Our customer service specialists are often trying to solve complex puzzles with many missing pieces," said Westpac CEO Anthony Miller. "In urgent circumstances, like when a customer thinks they've been scammed, these calls can be very emotive with lots of information that our operators need to synthesize very quickly. This AI tool is helping fill some of those gaps and is aiding our teams in realtime so they can more effectively respond."

Early results from the pilot program show promise, with operators using the technology successfully stopping more scams and reaching resolutions faster than those working without the AI assistance. Staff involved in the trial have reported having "deeper conversations" with customers and achieving better outcomes.

The technology represents the latest development in Westpac's broader anti-scam strategy. Over the past two years, the bank has invested more than $A100 million in scam prevention measures, helping customers avoid losing over $A500 million to fraudsters.

These efforts include upcoming features like SafeBlock, rolling out loter this year, which will allow customers to immediately freeze their accounts through the mobile app when they suspect fraud, and SafeCall, which makes calls via the app that are Westpac branded, verified by Optus and show a reason for the call.

The bank has also implemented measures such as changing digital card security codes every 24 hours, blocking payments to high-risk cryptocurrency exchanges and merchants, and adding 94,000 Westpac phone numbers to a "Do Not Originate" list to prevent scammers from impersonating the bank.

Miller indicated the AI technology could eventually expand beyond fraud detection to other areas of customer service, though the current focus remains on protecting customers from scams during what he described as "crucial moments" when quick, accurate responses are essential.

The initiative forms part of Westpac's "AI Accelerator" program as the banking sector increasingly turns to artificial intelligence to combat sophisticated fraud schemes targeting Australian consumers.