Day 1 of Money20/20: Generative AI dominated conversations at the start of the conference—unsurprisingly given it’s the hottest payment trend of the year.
Here’s what we heard on-stage and one-on-one with industry leaders about the future of genAI and how payments providers should respond.
Are we on the cusp of a utopian or dystopian revolution?
There is, of course, a large middle ground between the unlikely extremes of utopia and dystopia. But to find a healthy approach to AI, early action from governments, corporations, and other leaders will be vital.
How can financial institutions get ready?
What’s next? AI needs human expertise and supervision, Heidi Hunter, chief product officer at GBG Americas, argued in another panel.
Some tout genAI as a magic key that can solve every challenge, but the reality is far from that. The technology itself needs advancements, and it must resolve biases and discriminatory practices. Right now, Hunter said, genAI is only as good as what you put into it.
Mastercard’s AI approach: Insider Intelligence caught up with Mastercard’s Reiskind after his panel to get more insights into Mastercard’s AI strategy.
Democratization of AI: Mastercard has been using AI for more than 10 years, Reiskind explained.
Now, extracting insights from AI data is the real skill humans need. And using AI is an efficiency play that can help companies focus on building better products.
Top use cases for genAI in payments: Fraud prevention is the most valuable genAI use case for Mastercard, Reiskind said. It can complement existing fraud tools to identify suspicious behavior more quickly and flag potentially fraudulent transactions for further investigation.
Other payment players will say personalization is the top use case, Reiskind noted, particularly in the commerce experience. It can create product recommendations, promotions, and payment options tailored to customer preferences and behaviors. This can improve customer satisfaction and loyalty—boosting conversion rates in the process.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a three-times-weekly recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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