BrazilGenerative AI can boost commercial side of business in payments
Generative artificial intelligence (Gen AI) technology can enhance the commercial side of businesses in the payments landscape, like improving customer service and driving client engagement. That is according to a report from Visa Consulting & Analytics, which explores some of the top use cases.
Based on expansive neural networks trained by processing large amount of data, Gen AI tools like ChatGPT are able to create text, images, video, audio, and more from minimal prompt inputs. While previous AI tools were already able to automate certain tasks, Gen AI is far more flexible and capable of carrying out a far wider range of actions.
“AI is not just reshaping industries worldwide – it's revolutionizing them, and the payments sector is at the forefront of this transformation,” said Carl Rutstein, global head of advisory services with Visa Consulting & Analytics.
“Visa doesn’t just use AI to help improve payment experiences – our advisory business is also harnessing it to empower our clients to grow and redefine how they serve their own customers through acquisition, engagement, retention and risk management.”
CX and EX
In the payments sector, Gen AI has a lot of potential to boost customer experience capabilities and free up employees to focus on more important tasks. These types of tools can automate tedious tasks, help merchants authorize payments, and help combat fraud, among other things.
Gen AI technology can also be used to develop more human-like chatbots, which can offer 24/7 customer support and improve customer satisfaction while also reducing the workload on customer service employees.
Tools leveraging GenAI can further help payments businesses drive more engagement by creating more personalized and compelling marketing, livening up customer interactions with dynamic interfaces, managing customer lifecycle, and ultimately, helping to boost customer retention.
“With generative AI, there is the potential to introduce a more conversational approach to everyday transactional interactions. Routine customer interactions could be migrated from static interfaces with prepopulated FAQs, to chatbots that could dynamically and continuously improve customer interaction preferences,” notes the Visa Consulting & Analytics report.
Following the right strategy
Implementation strategy is vital when it comes to Gen AI, precisely because the innovations and opportunities seem limitless and strategy can easily be set on the wrong course. Rushing to implement GenAI tools without the proper planning can cause big issues down the line.
Organizations should work towards adequate transparency around Gen AI usage. That should include building the capability to educate and train users on outputs. If employees do not properly understand the tools they are using, the various risks around AI can come to the surface, including the propagation of faulty information or offensive imagery.
It is also important for organizations to have adequate safeguards in place for ethical concerns. AI has been criticized from an ethical point of view because some tools have shown the potential for bias, with Google Bard the latest high-profile example.
Payments companies that use AI tools and their users are also more vulnerable to cyber risks. Bad actors can commit even more sophisticated and rapid cyberattacks on unsuspecting users when GenAI tools are in the mix. Companies need to put the appropriate safeguards in place.
“Given the nature of the payments business, and the appropriate risk-balancing nature of many companies that operate within it, risk mitigation is an area that needs appropriate consideration before generative AI applications are implemented,” notes the report.
This is where Visa’s recently launched AI Advisory practice comes in. “Our team of consultants and data scientists guides organizations through their entire AI journey, from strategy through to implementation. We focus on providing actionable insights and recommendations to empower clients to unlock the potential of AI and utilize generative AI,” said Rutstein.
Visa Consulting & Analytics has over 1,000 consultants, data scientists and product experts in 75 offices on six continents.
