American Express keeps it cool as it jumps into generative AI frenzy

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.

• Amex will use AI to analyze customer sentiments and predict consumer finances.
• It doesn’t plan to roll out its own large language model (LLM); instead, it will rely on partnerships.
• Amex hasn’t announced any partners yet, but it worked with Microsoft to develop cloud-based AI technologies.

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.

• About 65% of executives said generative AI will have a high or extremely high impact on their organization in three to five years, per a March KPMG survey.
• But mass implementation won’t happen immediately: 60% of executives said they’re still one to two years away from rolling out their first solutions.
• Executives anticipated using the next year to grow their understanding of generative AI, evaluate internal capabilities, and invest in new tools.

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.

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