Visa To Invest $100M in Generative AI
Global payment giant Visa is doubling down on its commitment to artificial intelligence (AI) by launching a groundbreaking $100 million initiative aimed at supporting generative AI ventures. The move, announced on October 2, 2023, marks Visa’s latest endeavor to harness the transformative potential of AI within the realms of commerce and settlements.
The Generative AI Revolution
Generative AI is a rapidly evolving technology that possesses the remarkable capability to generate diverse forms of content, ranging from text and imagery to audio and synthetic data. Renowned AI chatbots such as OpenAI’s ChatGPT and Google’s Bard have already demonstrated the extraordinary capabilities of generative AI in understanding and producing human-like content.
Visa’s Chief Product and Strategy Officer, Jack Forestell, recognizes the profound impact that generative AI can have on the financial sector. He stated, “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 generative AI initiative will be managed by Visa Ventures, the company’s global corporate investment arm. Since its inception in 2007, Visa Ventures has been dedicated to supporting innovative solutions in payments and commerce. With a substantial investment of $100 million, this new endeavor aims to accelerate the development of generative AI technologies and their applications in the fields of commerce and payments.
Pioneering AI in Payments
Visa has a long-standing history of pioneering AI technology in the payments industry. In 1993, Visa became one of the first companies globally to utilize AI for risk and fraud management in payments. In 2022, their real-time payment fraud monitoring solution, Visa Advanced Authorization, successfully thwarted an estimated $27 billion in fraudulent transactions, underscoring the immense value of AI-driven security measures.
Visa’s commitment to AI innovation extends beyond security. In 2021, the company introduced VisaNet +AI, a comprehensive suite of AI-based services tailored to address common challenges in managing account balances and daily settlement processes for financial institutions. Notable features within this suite include “Smarter Stand-In Processing,” which enhances payment experiences during system outages by replicating issuer approval decisions, and “Smarter Posting,” designed to expedite consumer payment processes and reduce confusion arising from posting delays.
A Visionary Approach to Cryptocurrency
In addition to its investments in AI, Visa has been a trailblazer in exploring the integration of cryptocurrency technology into payments. In April 2021, the company unveiled plans for a groundbreaking crypto product aimed at promoting the mainstream adoption of public blockchain networks and stablecoin payments.
Visa’s latest $100 million investment in generative AI reaffirms the company’s commitment to staying at the forefront of technological innovation. As generative AI continues to reshape industries, Visa’s strategic move positions them to play a pivotal role in driving the future of commerce and payments.