The Impact of Generative AI on Financial Services: Insights from Fabrizio Burlando, Head of Digital Labs at Mastercard

The Rise of Generative AI in Financial Services: A Conversation with Fabrizio Burlando

Over the past decade, we have witnessed the introduction of various advanced technologies by big tech firms that have left much to be desired. However, the emergence of generative AI (GenAI) in recent years, particularly in the financial services sector, is proving to have a lasting impact. Reports from McKinsey and the OECD highlight the potential of GenAI to add trillions of dollars annually to the global economy.

In a recent episode of the ‘AI in Business’ podcast, Fabrizio Burlando, Head of Digital Labs at Mastercard, shared insights on the current wave of generative AI tools and their impact on the financial services industry. Two key areas of discussion were data protection techniques for responsible AI governance and AI-supported decision-making for fraud prevention.

Fabrizio emphasized the importance of responsible AI governance, particularly in safeguarding customer data. He outlined four key principles: ownership, control, benefit, and protection, stressing the need for explicit company policies on data usage and handling. Tools like Truata, which focus on identification, encryption, and anonymization, are crucial in ensuring data privacy and security.

When it comes to AI-supported decision-making for fraud prevention, Fabrizio highlighted the need for companies to understand the specific problems they aim to solve with AI. He discussed the role of AI in constant model recalibration for fraud prevention and anti-money laundering, citing examples of how AI can trace funds across networks to detect fraudulent activities.

Fabrizio also touched on the broader applications of AI in financial services, including automating repetitive tasks, supporting decision-making processes, and achieving hyper-personalization in customer interactions. He emphasized the importance of choosing between traditional AI and generative AI based on the specific requirements of the use case, noting that traditional AI may be more suitable for precise tasks like fraud detection, while GenAI offers more creative potential in disrupting industries.

Overall, the conversation with Fabrizio Burlando sheds light on the transformative power of generative AI in the financial services sector and the importance of responsible AI governance in leveraging its benefits while ensuring data privacy and security. As GenAI continues to evolve, it is clear that its impact on the global economy and various industries will only continue to grow.