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  • Writer's pictureJamal Saafir

Visa’s $100 Million Bet On Generative AI

Updated: Oct 19, 2023


According to a report from Cointelegraph, Visa, a world leader in digital payment technology, is going in on artificial intelligence (AI) in commerce and settlements by creating a new fund to invest in generative AI endeavors.


On October 2nd, Visa announced a new $100-million generative AI plan to invest in companies dedicated to developing generative AI technologies and applications in the fields of commerce and payments.


This initiative will be led by Visa Ventures, the global corporate investment arm of Visa. Visa Ventures has been investing in and partnering with companies driving innovation in payments and commerce since 2007.

Generative AI is a technology that can create various types of content, including text, imagery, audio and synthetic data. Chatbots such as OpenAI’s ChatGPT and Google’s Bard give light to the capabilities of generative AI to understand and generate human-like writing.


According to Visa chief product and strategy officer Jack Forestell, generative AI has a favorable future in the financial world.


“While much of generative AI so far has been focused on tasks and content creation, this technology will soon not only reshape how we live and work, but it will also meaningfully change commerce in ways we need to understand”, he stated.

“With generative AI’s potential to be one of the most transformative technologies of our time, we are excited to expand our focus to invest in some of the most innovative and disruptive venture-backed startups building across generative AI, commerce and payments,” said David Rolf, Head of Visa Ventures, Visa Inc.


Visa’s latest foray into generative AI follows significant strides to implement AI technology in the company’s ecosystem.


In 1993, Visa became the first network to deploy AI-based technology for risk and fraud management, making them pioneers in the use of AI models in payments. In 2022, Visa’s real-time payment fraud monitoring solution, Visa Advanced Authorization (VAA), helped prevent an estimated $27 billion in fraud.


On February 2nd, 2021 Visa announced “VisaNet +AI, a suite of AI-powered services that address long-standing challenges and pain points for banks, merchants, and consumers—including delays and confusion with managing account balances and the unpredictability of daily settlement for financial

institutions.”


Tools in the VisaNet +AI suite include Smarter Stand-In Processing, which seeks to refine payment experiences during outages by following issuer approval decisions. Other such products include Smarter Posting, which aids in allowing faster consumer payment experiences and lessens confusion from posting impediment.













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