Article appeared in the September 5, 2025 issue of CUInsight.
For more than 15 years, I have been ringing the bell on crises that adversely affect credit unions across the country and around the world. As reported here at CUInsight, I raise awareness about crisis topics that disrupt culture, brand, and the bottom line. I’ve addressed and offered insights on issues ranging from cyberattacks, to a credit union’s role in environment, social and government (ESG), to avoiding the mishandling of an M&A deal.
The newest “crisis kid on the block” for credit unions to prepare for–Artificial Intelligence.
Intriguing and daunting
Like many, I find myself both intrigued and daunted by AI. The rapid advancement of this relatively young technology, particularly new Large Language Models (LLMs), is reshaping the credit union world at breakneck speed. Just when I think I have a solid grasp of the latest application, I come across something new (almost daily!) that immediately puts me behind.
Welcome to the new norm.
AI now has a prominent seat at your credit union’s leadership table, presenting both exciting opportunities and daunting risks. If not taken seriously or well managed, those risks can escalate into full-blown crises. From my vantage point and recent experience, here are several ways AI is already becoming a crisis issue and how credit unions can prepare to mitigate the damage.
AI risk identification and communication readiness
Credit unions sit at the intersection of member trust, community involvement, and regulatory compliance. When AI confusion or crisis enters the mix, even small missteps can quickly snowball into reputational damage. Below are some recent AI-related crisis scenarios (with institution names withheld for confidentiality).
Cybersecurity and data privacy
Instances are already emerging of AI mishandling member data—or of that data being manipulated by cybercriminals. The crisis risks are loss of sensitive member information, leading to outrage and a breakdown of trust.
Lending discrimination and bias
Across financial services, AI models have unintentionally denied loans or imposed unfavorable terms on protected groups. The crisis risks are lawsuits, media scrutiny, and regulator involvement over perceived systemic discrimination.
Deepfakes: AI-driven misinformation
Deepfake calls, emails, and even AI chatbots giving incorrect financial guidance are surfacing. The crisis risk is a member suffers financial losses and blames the credit union—not the bad actors behind the fraud.
Member service missteps
AI-driven chatbots can be efficient, but members often perceive them as cold, impersonal, or error-prone. The crisis risk: long-lasting member resentment, summed up by the sentiment, “My credit union doesn’t care about people anymore.”
PREPARE. PREPARE. PREPARE.
At ReputationUs, we often say: “Crisis management is 99 percent preparation and 1 percent execution.” The same applies to AI-related crises. Below are action steps to help credit unions prepare.
Create an AI-specific crisis communications plan
Anticipate AI-related scenarios (bias, breaches, miscommunication) and build a tailored crisis plan. Include pre-drafted holding statements that address fairness, transparency, and member trust.
Draft clear messages
Develop adaptable core messaging aligned with your credit union’s policies and procedures. Examples include:
- “We use AI responsibly to improve service, not replace people.”
- “Human oversight is always part of our decision-making.”
- “Members’ privacy and fairness are our top priorities.”
Train credit union spokespeople on AI issues
Designate a spokesperson who can clearly explain your credit union’s use of AI. Prepare them for what we like to call “rude questions” such as, “Did AI discriminate against this member?”
Build a culture of transparency and explainability
Have plain-language explanations ready to reassure members that AI supports—but does not control—credit union decisions. Establish escalation protocols so sensitive AI outcomes are reviewed by humans.
Communicate openly about how AI is being used (fraud detection, chatbots, lending support). Highlight safeguards, human oversight, and share success stories like fraud prevention and reduced wait times.
Monitor for signs of AI disruption
AI disruptions will become increasingly common. Stay proactive by monitoring social media, member services, and system errors for early warning signs. Set rapid-response protocols to correct misinformation quickly.
Train and simulate AI crises
Run tabletop exercises around potential headlines such as:
- “AI denial of loan leads to discrimination claim against credit union.”
- “AI chatbot gives faulty advice to member.”
All in on AI crisis
When it comes to AI crises, credit unions have two choices:
- Wait for the AI crisis to happen.
- Prepare for when they inevitably do.
Which path will your credit union take?
Casey Boggs is a 25-year public relations veteran and founder of two national communications firms, ReputationUs and LT Public Relations. In addition to overseeing business operations, Boggs and the RepUs partner with businesses and nonprofits to enhance, protect and defend their valuable reputations with analytical assessments, strategic planning and any necessary ad hoc support. Boggs is also an international expert on crisis management and cyber security support.
Before founding ReputationUs, Boggs was the public relations director at AIG, one of the world’s largest insurance companies. Prior to AIG, Boggs managed clients for two of the largest public relations agencies, Waggener Edstrom and Weber Shandwick. Before his career in public relations, Boggs was a broadcast buyer for the international advertising agency, Hal Riney & Partners.
