The AI Effect of the future of payments
- Technical innovations like generative AI can push the bounds of global commerce
- Visa’s new AI Advisory Practice will aid businesses in the payments sector to unlock the potential of artificial intelligence (AI) and utilize generative AI (Gen AI)
AI is ushering in a new era that will reshape industries and revolutionize business practices. Given the unique characteristics of the payments business, the impact on commerce could be profound.
Yet the industry's risk profile, competitive intensity and need to engage closely with customers across the product lifecycle demand thoughtful consideration when integrating AI into business operations.
Tapping into the Power of AI
With AI’s potential to transform how the industry works, develop new products and services, and serve customers, the question arises: how can payments businesses leverage the technology most effectively?
Visa has been a pioneer in using AI to fight fraud and improve payments since 1993. In the last 10 years alone, the company has invested more than $3 billion in AI and data infrastructure. Visa Consulting & Analytics (VCA), the payments consulting arm of Visa, employs AI with more than 150 unique models to help clients succeed.
It is with this expertise that VCA recently launched its AI Advisory Practice to provide actionable insights and recommendations to empower clients with the ability to unlock the potential of AI, including Gen AI.
Gen AI is brimming with innovation and opportunities. Yet, organizations that implement Gen AI too quickly and without proper infrastructural or strategic support could inadvertently expose themselves to performance, operational and organizational issues. Given the risk-balancing nature of the payments business, companies in the financial services sector should have a solid strategy before adopting AI applications.
“In today’s world, it is virtually impossible to throw a stone in any industry’s direction without encountering the transformative impact of AI. Visa’s AI Advisory Practice is made up of a team of experts who can help payment businesses through their AI journeys – from the strategy and planning phase all the way through to implementation,” said Carl Rutstein, global head of advisory services, Visa.
Considerations for AI Implementation
While Gen AI is still in its early days, the following are three key considerations for payments organizations looking to implement the technology within their own businesses:
- Get familiar with Gen AI to link to key business objectives: Whether a business needs to improve digital acquisition, enhance loyalty, or streamline operations, business leaders should choose a use case that is closely and clearly aligned with organizational goals, has a strong strategic rationale, and has well-structured success metrics.
- Build a strong, AI-ready foundation: The foundation should include data infrastructure, governance, and transparency. Organizations must ensure that data management systems are robust enough to support the level of data quality needed for AI models. Be sure technical infrastructure is supported with the right human capital to provide the right oversight to the AI. To ensure data is used responsibly, leadership must champion the quality and security of data as a core goal. Finally, organizations should implement processes to trace the flow and use of data to foster accountability, which will help build trust with users and stakeholders.
- Collaborate with external partners: To accelerate AI implementation and supplement any skill gaps that may arise, organizations should prepare to draw on external expertise, resources, models, and frameworks while ensuring that data integrity and privacy are prioritized in partner selection.
With VCA’s global network of over 1,000 consultants, data scientists, and product experts across six continents, businesses everywhere can tap Visa to help navigate the AI landscape and explore the role of Gen AI for their businesses. Through collaboration, Visa hopes to empower clients to formulate a responsible AI strategy to achieve their unique business objectives, including acquiring and activating new customers, improving authorization rates, reducing fraudulent transactions and more.
Learn more about how Visa Consulting & Analytics can help clients on their AI journey here.