Visa has announced a substantial investment of $100 million in companies focusing on generative AI technologies and applications that are expected to influence the future of commerce and payments. This financial commitment will be carried out through Visa Ventures, the corporation’s global corporate investment division, which has been in operation for 16 years.
Visa has a long-standing history of utilizing AI in payment systems, dating back to 1993. Generative AI, for those unfamiliar, is a burgeoning branch of AI that relies on extensive datasets to generate text, images, or other content based on textual prompts.
Jack Forestell, Visa’s Chief Product and Strategy Officer, highlighted the significance of generative AI, stating, “While much of generative AI so far has been focused on tasks and content creation, this technology will soon not only reshape how we live and work, but it will also meaningfully change commerce in ways we need to understand.”
David Rolf, the head of Visa Ventures, underscored the transformative potential of generative AI, calling it one of the most influential technologies of our era.
Visa Ventures has considerable flexibility in terms of the number of investments it plans to make through this new fund, as well as the size of these investments. Rolf explained that, due to the nascent nature of the industry, they expect to make a range of smaller investments, typically in the millions of dollars. However, if the rationale is strong, they also possess the capacity to make larger investments.
When considering potential investments, Visa is specifically seeking out companies that leverage generative AI to address real challenges in commerce, payments, and fintech. This encompasses a wide spectrum, from B2B processes in payments to infrastructure that could have a substantial impact on commerce. Rolf emphasized their interest in companies operating at various levels of the technology stack, ranging from data organization for generative AI to the end-user experiences at work or in personal lives.
Moreover, Visa is placing a strong emphasis on responsible AI usage in alignment with its policies. They aim to support startups that are tackling the next wave of challenges in unlocking commerce and connecting with innovative companies.
Visa’s engagement in fintech and innovation is not confined to Visa Ventures; it also collaborates closely with its fintech division. Marie-Elise Droga, who was appointed as Visa’s Head of Fintech in late 2022, previously mentioned that her team frequently collaborates with Visa Ventures, essentially acting as a scouting engine for the corporation’s venture arm.
This substantial investment by Visa underscores the growing significance of generative AI in reshaping various sectors, including commerce and payments. As generative AI technologies continue to advance, Visa’s commitment to supporting innovative startups in this space highlights their dedication to staying at the forefront of technological advancements and fostering responsible AI practices.