Artificial Intelligence is increasingly influential in the realm of digital payments, enhancing both customer experience and transaction security. AI technology enables task automation and enhances capabilities in fraud detection and risk assessment.
We invited Marina Evseeva to delve into the future of AI in Payments. Marina Evseeva holds an MBA in Global Finance and Banking and is currently pursuing a JD with a concentration in Intellectual Property Law at the University of New Hampshire Franklin Pierce School of Law.
How can AI be utilized in the payments industry?
Marina Evseeva: The most significant advantage of AI lies in its ability to analyze vast numbers of transactions swiftly and accurately. This capability is particularly useful for several tasks, such as tracking spending and managing finances effectively.
Additionally, AI can identify suspicious activities and flag potentially fraudulent transactions, significantly enhancing security and efficiency in the payments industry. AI can also automate repetitive tasks to minimize errors and aggregate data needed to forecast customer behavior, further enhancing security, efficiency, and customer experience in the payments industry.
What are the potential future advancements of AI in payments?
Marina Evseeva: I believe the two most significant advancements we can expect in the future are personalized customer service and streamlined real-time transaction analysis.
Personalized customer service can be achieved by combining natural language processing with the analysis of customer behavior to generate tailored solutions and offers for each client. AI’s ability to quickly analyze data and generate responses will elevate customer service to the next level.
Regarding real-time transaction analysis, AI can go beyond merely detecting fraudulent transactions after they occur. Through analysis and predictive modeling, it can identify behavioral patterns to prevent fraud before it happens, offering proactive protection and enhanced security.
What challenges and risks does AI pose to the payments industry?
Marina Evseeva: The current risks associated with AI are primarily related to data privacy and intellectual property concerns. Since AI uses and analyzes vast amounts of information, there is a risk of personal data being exposed. Additionally, training AI systems on large databases can lead to using copyrighted material without authorization.
Furthermore, AI can make forecasts based on previous behavior and choices, often without an individual’s consent. Powerful AI models can also become attractive targets for cyber threats, potentially compromising personal privacy. Of course, AI can also be biased if the data it receives contains biases, leading to outcomes that might violate current laws and result in discriminatory practices.
How can businesses prepare for AI advancements?
Marina Evseeva: Since AI still requires human oversight, the best way to start preparing is by training staff on what AI is and how it works. Effective employee training should cover ethics and security measures necessary for proper AI use, addressing the associated risks.
Additionally, adopting and enforcing a policy that includes ethical guidelines and strategies to mitigate data privacy risks is crucial. By ensuring employees are well-versed in these areas, businesses can better navigate the complexities of AI advancements.
