The news: American Express will extend its generative artificial intelligence (AI) capabilities to enhance the customer experience across its credit cards and bank offerings, per VentureBeat.
How it may work: Amex is looking into ways LLMs can analyze feedback and customer service inquiries—as well as comments on social media—to develop appropriate and helpful responses to customer questions and concerns.
The bigger trend: Hype around generative AI exploded this year, but we’re still in the early stages of applying the tech beyond chatbots and search engines.
Amex is in line with peers in terms of still being in the earliest phases of generative AI experiments. Mastercard is “actively engaged” in generative AI research but is approaching it cautiously to ensure data privacy and mitigate other risks that come along with the technology.
What’s next? We believe generative AI will reimagine various verticals within the payments industry, particularly for payment networks, mobile wallet providers, and issuing banks. But before this transformation can take place, regulation must be sorted out to protect data privacy, preserve financial stability, and eliminate discrimination within the tech.
Dig deeper: To learn more about the most promising use cases for generative AI in payments, check out our report, “ChatGPT and Generative AI in Payments.”
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.