Shani-Michel began by outlining how automation, analytics, and identity are three areas where artificial intelligence (AI) can have a significant impact. She advised retailers to focus on using AI to support monitoring and increase revenue.

Van Nijnatten, general manager of ASOS Payments, explained how the large online fashion store uses artificial intelligence (AI) for fraud. He said that by switching from rule-based to machine-learning, they were able to eliminate a startling 60% of their fraud department in favor of artificial intelligence.

But those who remain in the fraud section don't have to put in as much overtime as they formerly did, he said. They have the option of working conventional business hours rather than nonstop. However, human decision-making will always be paired with AI; someone will always have the last say when it comes to fraud.
 

AI is a "double-edged sword," according to Skwarczek. On the plus side, it can be utilized for content creation and copywriting, as well as for generating cybersecurity solutions and optimizing departmental efficiency. On the other hand, he asserted that AI is not always “very smart,” saying that it is capable of making frequent, basic errors when presented with contradicting information about straightforward facts. Before AI reaches a point where it is functioning effectively, it must go through numerous stages of growth.

Maj disagreed with Skwarczek's previous argument, stating that prejudice and the size of the knowledge base are two factors that limit the use of AI and that it can only be "stupid" if that is how it is constructed. However, AI has a lot of potential because to GenAI and improved code.

In order to fully utilize the potential of the technology, Burelli said that companies should develop a proactive, human-centered strategy for implementing AI, which involves training staff members on how to use the technology.

Van Nijnatten highlighted ASOS's introduction of an AI stylist that can gather apparel and accessories appropriate for any occasion and provide a customized experience for the customer when talking about the use of AI for shops.

According to Skwarczek, the process should always have a human core. While AI solutions should be used to optimize the client experience, human interaction is still necessary for all of these technologies to be accessible to clients. He used his company as an example.

"We were able to free up time to engage in other activities by using the AI solutions we employ to handle chargebacks, disputes, and other associated issues. The AI system we utilized supported us and freed us our time so we could concentrate more on other crucial aspects of the work.

Shani-Michel clarified that AI has complex solutions and cannot be a one-stop shop to solve every problem in a corporation while talking about fraud management and prevention in AI.

Why is trust so important?

Chris Reid, EVP of identity solutions at Mastercard, discussed how fraud happens and how cybercrime has changed with new technologies in a talk titled "Trust is the New Gold."

Online fraud markets, he clarified, are effective, lively, and competitive. Various supply chains, including those for distribution, raw materials, and manufacturers, run them. Identity documents are being stolen by criminals, who can then use them to fabricate paperwork. He explained how the quality of these fictitious passports, driver's licenses, BRPs, and other documents has improved over time, becoming more precise and thorough.

On the dark web, you can also purchase fictitious bank accounts that have been approved by KYC. This includes the ability to send phony cards that may be old and have been through bank checks. In search of answers, Reid concentrated on how companies are establishing a reliable reputation on the payments and merchant side and establishing a network by leveraging insights from the dark web to develop a solution.

"What our ecosystem offers is healthy, long-term growth in merchant payments and commerce. It's our goal to achieve that. Sure, we're business-oriented, but we're also pushing the boundaries of growth by fostering a higher degree of trust.

What role might AI play in thwarting fraud?

AI's application in fraud and payments was briefly discussed by Galit Shani-Michel, vice president of payments at Forter, at a keynote speech titled "From Cost Reduction to Revenue Generation." When she first asked the audience how many of their organizations were utilizing artificial intelligence (AI) to detect fraud, the majority of them said they weren't.

Citing data, Shani-Michel emphasized that bad actors may be recognized and stopped through AI and machine learning. She also mentioned that 60% of customers will skip the checkout process if it takes more than two minutes, and that they will never buy from a website again after being unjustly refused. The takeaway is that having a positive customer experience is essential, building trust is crucial, and being a dependable retailer will boost sales, which AI may aid in producing.

She went on to say that AI can reduce friction for customers by accurately determining fraud based on the person behind the transactions. Shani-Michel emphasized that the key to leveraging AI effectively is to use it to comprehend issuer behavior and automate payment testing to ascertain the optimal procedure for every transaction.

"Right now, you can get very quick answers if you ask the right questions with the right tools, and then spend your time fixing it," she said in closing. We talked about how workers worry that they won't be needed in the future—you will always be needed. Instead of going through your data to see what went wrong, you will be able to spend your time to really remedy the issue. Thus, I'll also urge you to consider reporting and monitoring. Above all, keep in mind that these con artists will win the game if you don't keep up with them.