The advent of AI and large language models is raising ambitious expectations for how banks can enhance payment experiences for their customers. This technology is transforming the operations of financial institutions and payment service providers. Advocates, often with a touch of hubris, have pinpointed a variety of use cases that present innovative opportunities for banks to refine their practices and improve efficiency.
Traditionally, banks have been cautious in embracing new technologies. However, the democratization of AI, highlighted by tools like ChatGPT, signifies a transformative shift. Integrating AI into payment systems is no longer merely a technological upgrade; it represents a fundamental change in how banks serve and protect their clients.
While AI is not a panacea, it serves as a powerful tool in the battle against fraud. Its capability to process and analyze data at unprecedented speed and scale provides the financial sector—especially in payments—with a new strategy for identifying and preventing fraudulent activities.
AI is increasingly being leveraged in the financial sectors of developing countries, including Ethiopia, to enhance efficiency, accessibility, and security. AI algorithms analyze transaction patterns to identify suspicious activities. In a context where fraud can be rampant, this capability helps protect both consumers and financial institutions.
