Brad Wiskirchen, Oct. 2019
Artificial intelligence (AI) is key to keeping up with today’s emerging fraud trends. Fraud has evolved to become more sophisticated and complex than before, but fraud prevention is not the only reason companies turn to AI. Advanced AI-driven fraud protection also enables businesses to make decisions based on specific and desired outcomes.
AI Usage In Payments And Fraud
The payments, fraud prevention, financial services and eCommerce industries have only begun to scratch the surface of what AI can do. All of these industries leverage AI in different ways, whether that’s processing large amounts of data for risk decisioning, creating virtual assistants or making purchase recommendations to shoppers. eCommerce is still a relatively young industry, and as we move into the next decade, we will see AI being used in far more use cases than it is today.
In digital fraud prevention, AI is crucial for making real-time decisions at the scale and speed demanded in today’s environment and into the future. In the evolution of digital fraud prevention, we’ve seen rules engines, supervised machine learning (ML), unsupervised ML and, now, AI.
AI and ML are not inherently interchangeable. While ML is a component of AI, true AI emulates a human’s judgement. It should be difficult, if not impossible, to determine whether a machine or a human came up with the result. However, that is not to say AI should replace humans. To the contrary, AI-driven fraud prevention is so scalable that it allows humans to reduce manual reviews so they can focus on strategic initiatives, such as using fraud prevention to maximize business outcomes far beyond preventing chargebacks.