Visa, having pioneered AI in payment systems as early as 1993, is now setting aside a substantial fund to invest in generative AI ventures.
Global payment titan, Visa, is amplifying its commitment to artificial intelligence (AI) in trade and payments by establishing a new fund dedicated to investing in generative AI enterprises.
On October 2nd, Visa unveiled a fresh $100 million generative AI initiative, aiming to channel funds into businesses focusing on the evolution of generative AI technologies and applications pertinent to trade and payments.
AI’s Role in Operational Processes The investment will be managed by Visa Ventures, Visa’s global corporate investment wing, which has been fostering innovation in payments and commerce since 2007.
Generative AI is a branch of AI technology capable of generating varied content forms, including text, images, audio, and synthetic data. Leading AI chatbots, such as OpenAI’s ChatGPT and Google’s Bard, showcase generative AI’s prowess in mimicking human-like writing.
Visa’s Product and Strategy Chief, Jack Forestell, believes that generative AI holds a bright future in the financial realm. He commented:
“While much of generative AI has so far been concentrated on tasks and content creation, this technology will soon not only reshape our lifestyle and work but will also profoundly alter commerce in ways we need to grasp.”
Visa’s Historical Embrace of AI Visa’s latest stride towards generative AI follows its significant endeavors to incorporate AI technology into its ecosystem.
Being a trailblazer, Visa adopted AI for payment systems back in 1993, deploying AI-driven technology for risk and fraud management. In 2022, Visa’s real-time payment fraud monitoring solution, Visa Advanced Authorization, played a pivotal role in averting an estimated $27 billion in potential frauds.
In 2021, Visa also introduced VisaNet +AI, an array of AI-based services tailored to address daily account balance management issues and other daily settlement challenges for financial institutions.
Innovations in VisaNet +AI Some tools within the VisaNet +AI suite include Smarter Stand-In Processing, designed to enhance payment experiences during disruptions by mirroring issuer approval decisions. Another notable product, Smarter Posting, aims to streamline consumer payment experiences and diminish confusion stemming from posting delays.
Beyond its active investment in AI, Visa has also expressed keen interest in leveraging cryptocurrency technology for payments. In April 2021, Visa shared its vision for a new crypto product intended to boost the widespread adoption of public blockchain networks and stablecoin payments.