Visa Dedicates $100 Million for Generative AI Enterprises in Commerce and Payments
Summary:
Visa, the global payment leader, is launching a $100 million generative AI initiative. This fund will be used to invest in firms specializing in advanced AI technologies pertaining to commerce and payments. Managed by Visa's corporate investment division, Visa Ventures, the initiative stems from the company's commitment to integrating AI technology into its ecosystem. Visa has also shown strong interest in employing cryptocurrency technology for payment processes, having established its presence in the AI application field since as early as 1993.
Visa, the global payments behemoth, is intensifying its focus on artificial intelligence (AI) technology in the realm of settlements and commerce. To this end, they are establishing a new funding pool specifically directed towards supporting generative AI enterprises. As of October 2, the company disclosed its launch of a $100 million generative AI initiative dedicated to investing in businesses developing generative AI technologies and applications that intersect with commerce and payments. The investment selection will be overseen by Visa Ventures, the global corporate investment wing of Visa, which has been actively nurturing innovative payment and commerce solutions since 2007.
Generative AI is a variant of AI that can generate different types of content such as text, images, audio, and synthetic data. Chatbots such as ChatGPT by OpenAI and Bard by Google exemplify the potential of generative AI to understand and construct human-like text.
Visa's Chief Product and Strategy Officer, Jack Forestell, sees a bright future for generative AI in the fiscal sphere. He remarked that although generative AI has primarily been deployed for tasks and content creation till now, the technology will revolutionize the way we live and work ensuring an impactful transformation of commerce that warrants thorough comprehension.
The initiative by Visa to foray further into the generative AI sector complements their long-standing endeavor to incorporate AI technology within the company's ecosystem. Visa boasts being among the pioneers in employing AI in payment processing as early as 1993, having adopted AI-led technology for risk management and fraud prevention. In 2022, Visa's real-time fraud detection solution, Visa Advanced Authorization, was instrumental in averting an approximate $27 billion in fraudulent activities.
In 2021, Visa unveiled VisaNet +AI, an array of AI-driven services designed to tackle daily settlement problems and eliminate confusion concerning account balance management for financial institutions. The VisaNet +AI package includes tools like Smarter Stand-In Processing, aimed at enhancing payment experiences during outages by replicating issuer approval decisions. Other products such as Smarter Posting facilitate quicker consumer payment transactions and aid in minimizing confusion resulting from delayed posting.
In addition to making significant investments in AI, Visa has shown keen interest in incorporating cryptocurrency technology into its payment processes. The company announced in April 2021 its plan to launch a new cryptocurrency product devised to promote mainstream acceptance of public blockchain networks and stablecoin payments.
Published At
10/3/2023 8:57:00 AM
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