Visa Launches $100 Million Fund for Generative AI in Commerce and Payments

Visa Inc. announces a $100 million fund for generative AI technologies in commerce and payments.
Visa Ventures will oversee the fund’s investments, supporting innovative startups in the generative AI field.

On October 2, 2023, Visa Inc., a global leader in payment solutions, made a groundbreaking announcement. The company unveiled a dedicated $100 million fund aimed at advancing generative artificial intelligence (AI). This fund is strategically designed to invest in both startups and established businesses that are leading the charge in the development of generative AI technologies and applications, with a particular focus on their potential applications in commerce and payments.

Overseeing the investments of this fund is Visa Ventures, the corporate investment arm of Visa, with a track record dating back to 2007 of supporting innovative projects within the payment and commerce sectors. David Rolf, Head of Visa Ventures, conveyed his excitement about this initiative, emphasizing the transformative potential of generative AI. He stated, “Generative AI has the 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 in the fields of generative AI, commerce, and payments.”

Generative AI represents a category of artificial intelligence with the ability to create diverse content, spanning text, images, audio, and synthetic data. Notable AI chatbots such as OpenAI’s ChatGPT and Google’s Bard have demonstrated the capabilities of generative AI by generating text that closely resembles human writing. These advancements open up new horizons for the application of AI across various sectors, including commerce and payments.

Visa’s Ongoing Commitment to AI

Visa’s journey into artificial intelligence dates back to 1993 when the company pioneered AI-based systems for risk and fraud management. In 2022, Visa Advanced Authorization, the company’s real-time fraud monitoring system, played a pivotal role in preventing approximately $27 billion in fraudulent activities. Last year, Visa introduced VisaNet +AI, a suite of AI-driven services designed to assist financial institutions in addressing challenges related to daily settlement operations.

In addition to its AI investments, Visa has also explored other technological frontiers, notably blockchain technology, including Bitcoin, as part of payment systems. Jack Forestell, Chief Product and Strategy Officer at Visa, believes that generative AI holds immense potential in reshaping the financial landscape.

The $100 million fund signifies a significant stride in Visa’s overarching strategy to remain at the forefront of the swiftly evolving technological landscape. It not only reaffirms Visa’s leadership in AI but also underscores its commitment to spearheading future innovations capable of redefining commerce and payments.