December 5, 2023

Silicon Valley remains a hub of innovation, changing the business landscape with exciting new technologies. Tech giants including Apple, Meta, Visa and Cisco are still operating in the San Francisco area, and a string of startups are paving the way for cryptocurrency computer processing and distributed ledger technology (DLT). Silicon Valley’s latest innovation is generative artificial intelligence, OpenAI’s ChatGPT, which has gone from obscurity to world fame in a matter of months.

ChatGPT adoption reached 100 million Two months after users went live in January 2023, it became the fastest software adoption rate ever. Its meteoric rise means companies and governments are scrambling to study the technology to determine its impact on the tech sector. The payments space is no exception.

Payments and Innovation

The rapid rise of e-commerce over the past decade has accelerated the need for payment gateways, which must investigate and integrate emerging technologies to ensure easier, faster and more secure global payments. Therefore, incorporating payment functionality into the latest technology, and vice versa, is well known. Nonetheless, unique aspects of generative AI represent new challenges.

The payments industry has historically adapted well to new technologies. Explorations into embedded finance, cryptocurrencies, peer-to-peer wallets, metaverses, and DLT systems have been successful. Technology adoption in the payments industry has so far helped to increase payment speed and versatility. For example, enabling cryptocurrency payments, as well as improving security, reducing risk and providing merchants with access to emerging markets.

Naturally, integrating these technologies has not been without its challenges, but each of them is working in some way to improve our industry. Now is the time to investigate whether payments and AI replication can be integrated.

What is ChatGPT and how does it relate to payment?

AI-powered chatbots are built on large language models and fine-tuned using machine learning algorithms. For example, ChatGPT’s platform collects publicly accessible information that is believed to be correct and relevant until 2021.

One of the main strengths of this software is its ability to present clear and concise information at an impressive speed. This has led to a faster dissemination of information, which has been praised for its accuracy, especially given how new the technology is.

On the payment side, the integration with ChatGPT tool may speed up the speed for users to source, compare and buy products. When it comes to shopping, AI can do the heavy lifting, speeding up the search process based on user prompts.

Integrations save users time, especially when purchasing less common or niche items from global merchants. The immediacy of these platforms may improve user experience (UX). The customer journey, from initial prompt to selection to payment, can be simplified to one click. Again, having a large selection of brands and competitors helps to find the best price, availability and selection.

Other Web3-based purchasing methods can also be integrated into payment-enabled AI platforms. Digital e-wallets or cryptocurrency transactions could similarly be implemented into the platform’s interface, giving users more options for online purchases. For merchants, this again increases the flexibility they can offer their customers. The key element is to enable transactions that are only possible through gateway integration.

Ready to integrate payments into generative AI now?

Generative AI chat platforms, while powerful, have several areas of improvement that could accelerate their potential in the new payments future.

There are growing concerns about the security of user information on these platforms. Users have managed to change the wording of requests to trick the AI ​​into providing answers to requests it had previously rejected. A movement called Do Anything Now (and) trying to find holes in the way the AI ​​considers requests for information, claiming to have jailbroken the AI, ChatGPT programmed by DAN is described as “AI unchained”.While some users praised this version of the answer as more truthful, others voiced sound Once AI is not constrained by an ethical framework, there will be concerns about the risks it poses to users.

Security is another issue besides security. To ensure secure payments through AI platforms, protecting sensitive customer information is critical.cyber security experts have indicated The security of ChatGPT and its growing number of competitors may not be up to par for enterprise or e-commerce applications. If a firewall cannot guarantee user protection, it will slow down the effort and need to integrate payment solutions. Users’ trust in artificial intelligence may be exploited by malicious hackers, posing as chatbots to publish credible phishing content and obtain sensitive user information.

More examples of software itself not being as robust as it needs to be. March 2023, users Report Ability to see chat window conversations of other users.

Generating the intersection between artificial intelligence and payments

The new wave of generative AI is still in its infancy, so expect nascent questions around user safety, information accuracy, and infrastructure security. As these platforms mature, the focus on security will increase. The payments industry will be watching these developments closely.

Once a satisfactory level of user protection (including clear KYC) is guaranteed, payment companies may explore the intersection between AI and payments more deeply. There is no doubt that this technology can enable an online transaction method, increase the market scope of merchants, and improve the user experience and purchase speed of customers at the same time.