The future of payments is slathered in artificial intelligence (AI). This statement has recently been reinforced by the global payments juggernaut, Visa, as per a Cointelegraph report, revealing its plans to invest in generative AI ventures with a fund of $100 million. This investment will be managed by Visa Ventures, the firm’s global corporate investment arm.
Generative AI is an innovative field with transformative potential. This technology can generate various forms of content, such as text, imagery, audio, and synthetic data. Its advancements will be critical to businesses and payments, adding another level of dynamism to the industry. In fact, some notable AI chatbots, such as OpenAI’s ChatGPT and Google’s Bard, have already showcased the capability to understand and produce human-like writing.
Visa has been one of the main players blazing the trail for AI use in payments, having deployed AI-based technology for fighting fraud and managing risk as early as 1993. The firm’s real-time payment fraud monitoring solution, Visa Advanced Authorization, allegedly helped forestall an estimated $27 billion in fraud in 2022. This cements the theory that AI technology can provide critical support to the industry over time.
However, it is important to remember that while Visa’s investment in AI looks promising, the success of this venture will be heavily reliant on the co-existence of technology and regulation. This was highlighted by the Governor of Banco de Portugal, Mário Centeno, who stressed the importance of global cooperation in formulating a robust framework to oversee the risks associated with AI.
Critically, Visa’s voyage into the world of AI is not confined to risk management. Another notable stride was the introduction of VisaNet +AI in 2021, which offered AI-focused services aiming to untangle delays and confusion with account balancing and other daily settlement issues.
In addition to AI, Visa has also shown interest in integrating cryptocurrency technology into their payment systems. Earlier last year, Visa revealed plans for a new product aimed at fostering mainstream adoption of public blockchain networks and stablecoin payments.
In conclusion, while the future of payments looks bright with Visa’s $100M investment into generative AI, there’s a fine balance to strike between fostering innovation and ensuring robust regulation to prevent misuse. As we stand on the precipice of a new era in payments, it becomes clear that the union of AI and blockchain technology could very well rewrite the rules of commerce. However, the verdict on whether these technological advancements can coexist in synergy with existing financial infrastructures and regulatory standards still remains.
Source: Cointelegraph
