Mastercard is taking significant strides to integrate AI into its functions. In a recent interview with CNBC, the payments giant disclosed details about its Decision Intelligence Pro, a generative AI model designed to enhance fraud detection within its network. Simultaneously, Mastercard is rolling out the Small Business AI, an initiative aimed at offering personalized guidance and mentorship to small business owners.
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Mastercard Introduces Advanced AI Models
Advanced AI Model for Fraud Detection
Mastercard is set to revolutionize fraud detection with its proprietary generative AI model, Decision Intelligence Pro. Ajay Bhalla, Mastercard’s president of the cyber and intelligence business unit, revealed that this model utilizes a recurrent neural network, a core element of generative AI. Trained on a vast dataset of approximately 125 billion annual transactions, the model focuses on understanding relationships between merchants rather than textual inputs, offering a real-time assessment of suspicious transactions.
Decision Intelligence Pro
Unlike traditional fraud detection methods, Mastercard’s algorithm uses a cardholder’s history of merchant visits as a prompt to evaluate the legitimacy of a transaction. The algorithm swiftly generates pathways through Mastercard’s network, akin to heat-sensing radar, producing a score that indicates whether the transaction aligns with the cardholder’s typical behavior. This process occurs in a mere 50 milliseconds, contributing to a potential 20% improvement in fraud detection rates for financial institutions.
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Mastercard’s Investment in AI and Cybersecurity
Mastercard emphasizes its commitment to combatting fraud by investing over $7 billion in cybersecurity and AI technologies over the past five years. Bhalla highlighted the global perspective, stating that Mastercard’s ecosystem enables them to identify fraud patterns across transactions worldwide, providing a comprehensive approach to tackling evolving threats.
Also Read: How India Is Using Cutting-Edge AI to Tackle Payment Frauds
Small Business AI – A Beacon of Support for Entrepreneurs
In a separate announcement, Mastercard revealed its Small Business AI initiative, which provides personalized mentorship for small business owners. Partnering with Create Labs, the initiative aims to minimize biases and cater to diverse entrepreneurial needs. The Generative AI tool will leverage Mastercard’s existing content and integrate contributions from a global media coalition, including companies like Blavity Media Group, Group Black, Newsweek, and TelevisaUnivision.
Also Read: Jio’s Haptik Launches AI Tool for Business
The Intersection of Data Privacy and AI – Insights from Mastercard and IBM
Mastercard and IBM are at the forefront of AI innovation. During Data Privacy Week, Caroline Louveaux, Mastercard’s privacy and data responsibility officer, and Christina Montgomery, IBM’s chief privacy and trust officer, shared their perspectives on data privacy and AI regulation. Both companies prioritize principles such as transparency, explainability, and fairness in AI, acknowledging the importance of trust in maintaining client confidence.
Our Say
Mastercard’s introduction of advanced AI models marks a bold step, significantly enhancing their overall customer services. In the evolving landscape of AI, the convergence of data privacy and technology governance gains prominence, with Mastercard actively collaborating with industry leaders to shape responsible AI practices.
These AI advancements by Mastercard represent a transformative approach to fraud detection and underscore its vision for empowering small businesses with innovative solutions. As technology unfolds, the company’s commitment to ethical AI practices positions it as a pivotal player in shaping the future of financial transactions and small business mentorship.
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Sabreena Basheer is an architect-turned-writer who's passionate about documenting anything that interests her. She's currently exploring the world of AI and Data Science as a Content Manager at Analytics Vidhya.
