Global payments giant Visa has announced a new $100 million initiative to invest in generative AI companies. The initiative, called Visa Generative AI Ventures, will focus on investing in startups that are developing generative AI technologies and applications that can transform the future of commerce and payments.
Generative AI is a rapidly growing field of AI that uses large language models (LLMs) to create new content, such as text, images, and code. Visa believes that generative AI has the potential to revolutionize payments by making it easier for businesses to create personalized experiences for their customers, automate tasks, and reduce fraud.
“Visa has been a pioneer in the use of AI in payments since 1993, and we are excited to continue to lead the way in this space,” said Visa Chief Product and Strategy Officer Jack Forestell. “Generative AI has the potential to be one of the most transformative technologies of our time, and we are committed to investing in the companies that are building the future of payments with this technology.”
Visa Generative AI Ventures will be led by David Rolf, Head of Visa Ventures. Rolf said that the initiative is looking to invest in companies that are developing generative AI solutions for a variety of payment use cases, including:
- Personalized customer experiences: Generative AI can be used to create personalized shopping experiences for customers, such as recommending products based on their past purchases or generating personalized marketing messages.
- Automated tasks: Generative AI can be used to automate a variety of tasks in the payments ecosystem, such as fraud detection, risk assessment, and customer support.
- New payment products and services: Generative AI can be used to develop new payment products and services, such as dynamic pricing, real-time payments, and new forms of authentication.
Visa is not the only payment company that is investing in generative AI. Other companies, such as Mastercard and PayPal, have also announced initiatives to invest in this technology. The growing interest in generative AI from payment companies suggests that this technology has the potential to have a major impact on the way we pay in the future.
Potential applications of generative AI in payments
Here are some specific examples of how generative AI could be used to improve the payment experience:
- Personalized payment cards: Generative AI could be used to create personalized payment cards with unique designs and features that are tailored to the individual user’s needs.
- Real-time fraud detection: Generative AI could be used to develop more sophisticated fraud detection systems that can identify fraudulent transactions in real-time.
- Secure authentication: Generative AI could be used to develop new forms of authentication that are more secure and convenient than traditional methods, such as passwords.
- New payment methods: Generative AI could be used to develop new payment methods, such as contactless payments or payments using biometrics.
Visa’s investment in generative AI is a sign of the growing importance of this technology in the payments industry. Generative AI has the potential to revolutionize the way we pay, and Visa is well-positioned to lead the way in this transformation.