Modernizing Utility Collections through Customer Analytics and AI

Abstract

The 2020 COVID-19 pandemic introduced economic calamity and uncertainty in America that had not been seen since the 2007–2008 financial crisis. What began as an uncertain period for individual well-being soon translated into broader economic issues for the American economy. Businesses facing months of lost revenue, deficits, and uncertainty began weakening financially and, as a result, were forced to reduce staff. In the years that have followed, industries which have historically been able to count on stable revenue, such as utilities, particularly suffered. Struggling households and small businesses began missing consecutive monthly payments, and customer debt climbed to unprecedented levels. As of March 2023, “one in six households across the country were behind on their electric bills.”¹ Additionally, instances of non-residential customers falling behind on their payments emerged. Historic levels of arrears continue to mount pressure on the industry, and traditional approaches to arrear collection are not working.