Paysafe Exec Warns Against Rushed AI Deployment in Payments

The race to implement artificial intelligence (AI) in payments risks creating solutions that fail to deliver value, according to a senior executive at Paysafe, the global payments platform that processes transactions for online merchants and consumers.

Kenneth Upchurch, Global Head of Automation at Paysafe, points to recent funding challenges at OpenAI, the company behind ChatGPT, as evidence that bringing AI products to market without proper planning carries substantial risk.

Testing before deployment

Paysafe has developed an internal AI tool called Ask Paysafe, which integrates with Microsoft Teams and uses GPT-4, a large language model that processes text inputs to generate human-like responses. The tool provides staff access to company information resources through natural language queries.

“This tool supports thousands of daily chats, enhancing our teams' efficiency,” says Kenneth. The company tested the system with small groups before wider deployment, gathering feedback to refine its functionality.

The development process for Ask Paysafe included mapping organisational objectives and assessing resource requirements. This approach contrasts with companies that rush to integrate AI without establishing clear business cases for the technology.

Consumer education remains critical

Research from Paysafe indicates that 30% of consumers have reservations about AI in payments, while 17% express discomfort with the technology. The data shows 28% of consumers feel comfortable with AI in financial services.

The acceptance gap presents challenges for financial institutions implementing AI solutions. Companies must demonstrate the technology's practical benefits, including transaction speed improvements and security enhancements.

Financial organisations now focus on educating users about AI's role in reducing friction and strengthening security measures. This education effort aims to address consumer concerns about data privacy and automated decision-making in financial services.

Security and verification systems

AI systems analyse transaction patterns to identify potential fraud, processing data points to flag suspicious activity. Traditional rule-based systems struggle to perform these tasks at the same scale and speed.

Paysafe has integrated AI-enabled technologies including biometric verification, which uses physical characteristics to confirm identity, and behavioural analysis, which examines patterns in how users interact with payment systems.

The platform combines AI monitoring with instant payment confirmations, maintaining security through continuous pattern analysis. This approach helps reduce manual errors while providing insights for fraud detection parameters.

The technology enables personalised financial advice and transaction monitoring, creating a balance between security measures and user convenience. These developments aim to address both merchant and consumer needs in digital payments.

“By leveraging advanced AI-enabled technologies such as biometrics, machine learning, and behavioural analysis, payments providers can create a more secure and frictionless payments ecosystem,” concludes Kenneth.

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