April 19, 2024
Fueling the Future: Visa's $100M Generative AI Investment

Fueling the Future: Visa’s $100M Generative AI Investment

In a visionary move, Visa, a global leader in payment solutions, has allocated $100 million to invest in generative AI, signaling its strong commitment to the convergence of artificial intelligence (AI) and commerce and settlements. Visa is renowned for its historical involvement in AI innovation, having adopted AI-based technology for risk management and fraud prevention in the payment sector as far back as 1993.

This substantial investment, announced on October 2, is part of Visa’s new initiative, aimed at supporting companies dedicated to developing generative AI technologies and their applications within the realm of commerce and payments. Visa Ventures, Visa’s global corporate investment division, established in 2007 to foster innovation in the payments and commerce landscape, will oversee and curate this substantial investment.

Generative AI is a specialized AI technology capable of producing diverse forms of content, encompassing text, images, audio, and synthetic data. Notably, it has demonstrated impressive capabilities in generating human-like text, as exemplified by major AI chatbots such as OpenAI’s ChatGPT and Google’s Bard.

According to Visa’s Chief Product and Strategy Officer, Jack Forestell, “While much of generative AI so far has been focused on tasks and content creation, this technology will soon not only reshape how we live and work, but it will also meaningfully change commerce in ways we need to understand.”

Visa’s latest foray into generative AI follows its proactive efforts to integrate AI technology within its operational ecosystem. Visa prides itself on being one of the pioneering firms to embrace AI for payments, a journey that commenced in 1993 with the deployment of AI-based technology to manage risks and combat fraud. Notably, their real-time payment fraud monitoring solution, Visa Advanced Authorization, played a pivotal role in preventing an estimated $27 billion in fraudulent activities in 2022.

Furthermore, Visa introduced VisaNet +AI in 2021, a suite of AI-based services aimed at streamlining account balance management and resolving common issues associated with daily financial settlements for financial institutions. Key components of this suite include Smarter Stand-In Processing, designed to enhance payment reliability during service outages by replicating issuer approval decisions. Another offering, Smarter Posting, expedites consumer payment processes and reduces confusion stemming from payment posting delays.

In addition to their extensive investments in AI, Visa has been an advocate of cryptocurrency technology in payment solutions. In April 2021, Visa unveiled plans for a cryptocurrency product designed to promote the widespread adoption of public blockchain networks and facilitate transactions involving stablecoins. Visa remains at the forefront of these technological advancements, underlining their dedication to shaping the future of payments.
Image by Wikimedia Commons

Related posts

Biden’s AI Vision: NIST Calls for Input on Responsible Development

Eva Moore

AI Firms Restrict, Not Ban Election ‘Deepfakes’

Henry Clarke

Musk Pretends AI to Surpass Human in the Coming Year

Cheryl  Lee

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More