In a move that could force businesses to overhaul their automated customer outreach, the Federal Communications Commission (FCC) has proposed new rules requiring companies to disclose when they use artificial intelligence (AI) to generate robocalls and texts, potentially reshaping the landscape of customer interactions and brand loyalty.
\nThe FCC\u2019s proposal aims to increase transparency in AI-powered communications. If implemented, these rules would require upfront disclosure of AI use in automated calls and messages, potentially altering how businesses interact with consumers.
\n\u201cThe FCC rules, if adopted, may require businesses that use automated voice and text communications to make adjustments to their processes, as well as investments in technology and training to ensure compliance,\u201d Trevor Francis,\u00a0CEO at voice connectivity company 46 Labs, told PYMNTS. \u201cThey may need to revise scripts, rethink their use of automation, or implement alternative ways of communicating with their customers.\u201d
\nThe proposal, detailed in Notice FCC 24-84, would require callers to inform consumers when AI is employed in communications. This move aims to equip the public with tools to identify and avoid potentially fraudulent or scam-related calls, according to the FCC. The FCC has issued a notice seeking public comments on its proposed rules and ideas for alerting consumers to AI-generated spam calls and texts.
\nInstructions for commenting on FCC proposals can be found online.\u00a0
\nRobocalls have long been a nuisance for consumers and a challenge for regulators. In 2022, Americans received nearly 50 billion robocalls, according to YouMail, a company that tracks and blocks such calls.\u00a0
\nThese automated communications range from legitimate business reminders to fraudulent scams, costing consumers billions annually. Previous FCC efforts to combat robocalls have included implementing STIR/SHAKEN protocols to authenticate caller IDs and imposing fines on violators. However, as technology advances, so do the tactics of bad actors.\u00a0
\nThe rise of AI-generated voices has added complexity to the issue, enabling more convincing impersonations and potentially more effective scams, underscoring the need for updated regulations.
\nThe proposal includes mandatory disclosure of AI use at the start of calls, subject to consumer consent, provisions to protect AI applications that assist consumers with disabilities, and improvements to the FCC\u2019s robocall mitigation database. These measures could impact industries relying on automated communication systems, including marketing, customer service and political campaigning.
\nHowever, Francis sees potential benefits: \u201cSwift adoption of the proposed FCC rules could favorably impact a business\u2019s reputation and help establish a level of trust with their customers.
\n\u201cVoice is historically the most trusted and regulated form of communication available, but the abundance of robocalls and scams consumers receive on a daily basis make many reluctant to answer their phones anymore. Consumers appreciate transparency, and businesses that embrace these changes could see a positive gain in customer satisfaction, trust and loyalty.\u201d
\nThe new regulations could also reshape the competitive landscape for AI communication services. Francis noted, \u201cThese changes create an opportunity for businesses offering AI communication services to differentiate themselves from their competitors by offering more innovative and personalized solutions that prioritize transparency and privacy while facilitating compliance.\u201d
\nAs AI technology evolves, these regulations attempt to balance innovation with consumer protection. Businesses must navigate these new requirements carefully, potentially leading to more transparent and ethical use of AI in customer communications.
\nThe FCC now seeks public comment on the proposed rules, inviting input from businesses, consumers and other stakeholders before finalizing the regulations. While compliance may present challenges, it also offers opportunities for companies to build trust and loyalty in an AI-driven communication landscape.
\nFor all PYMNTS AI coverage, subscribe to the daily AI\u00a0Newsletter.
\nThe post FCC Proposes New Rules on AI-Powered Robocalls\u00a0 appeared first on PYMNTS.com.
\n", "content_text": "In a move that could force businesses to overhaul their automated customer outreach, the Federal Communications Commission (FCC) has proposed new rules requiring companies to disclose when they use artificial intelligence (AI) to generate robocalls and texts, potentially reshaping the landscape of customer interactions and brand loyalty.\nThe FCC\u2019s proposal aims to increase transparency in AI-powered communications. If implemented, these rules would require upfront disclosure of AI use in automated calls and messages, potentially altering how businesses interact with consumers.\n\u201cThe FCC rules, if adopted, may require businesses that use automated voice and text communications to make adjustments to their processes, as well as investments in technology and training to ensure compliance,\u201d Trevor Francis,\u00a0CEO at voice connectivity company 46 Labs, told PYMNTS. \u201cThey may need to revise scripts, rethink their use of automation, or implement alternative ways of communicating with their customers.\u201d\nCompliance Challenges and Opportunities\nThe proposal, detailed in Notice FCC 24-84, would require callers to inform consumers when AI is employed in communications. This move aims to equip the public with tools to identify and avoid potentially fraudulent or scam-related calls, according to the FCC. The FCC has issued a notice seeking public comments on its proposed rules and ideas for alerting consumers to AI-generated spam calls and texts.\nInstructions for commenting on FCC proposals can be found online.\u00a0\nRobocalls have long been a nuisance for consumers and a challenge for regulators. In 2022, Americans received nearly 50 billion robocalls, according to YouMail, a company that tracks and blocks such calls.\u00a0\nThese automated communications range from legitimate business reminders to fraudulent scams, costing consumers billions annually. Previous FCC efforts to combat robocalls have included implementing STIR/SHAKEN protocols to authenticate caller IDs and imposing fines on violators. However, as technology advances, so do the tactics of bad actors.\u00a0\nThe rise of AI-generated voices has added complexity to the issue, enabling more convincing impersonations and potentially more effective scams, underscoring the need for updated regulations.\nThe proposal includes mandatory disclosure of AI use at the start of calls, subject to consumer consent, provisions to protect AI applications that assist consumers with disabilities, and improvements to the FCC\u2019s robocall mitigation database. These measures could impact industries relying on automated communication systems, including marketing, customer service and political campaigning.\nHowever, Francis sees potential benefits: \u201cSwift adoption of the proposed FCC rules could favorably impact a business\u2019s reputation and help establish a level of trust with their customers.\n\u201cVoice is historically the most trusted and regulated form of communication available, but the abundance of robocalls and scams consumers receive on a daily basis make many reluctant to answer their phones anymore. Consumers appreciate transparency, and businesses that embrace these changes could see a positive gain in customer satisfaction, trust and loyalty.\u201d\nBusiness Opportunities\nThe new regulations could also reshape the competitive landscape for AI communication services. Francis noted, \u201cThese changes create an opportunity for businesses offering AI communication services to differentiate themselves from their competitors by offering more innovative and personalized solutions that prioritize transparency and privacy while facilitating compliance.\u201d\nAs AI technology evolves, these regulations attempt to balance innovation with consumer protection. Businesses must navigate these new requirements carefully, potentially leading to more transparent and ethical use of AI in customer communications.\nThe FCC now seeks public comment on the proposed rules, inviting input from businesses, consumers and other stakeholders before finalizing the regulations. While compliance may present challenges, it also offers opportunities for companies to build trust and loyalty in an AI-driven communication landscape.\nFor all PYMNTS AI coverage, subscribe to the daily AI\u00a0Newsletter.\nThe post FCC Proposes New Rules on AI-Powered Robocalls\u00a0 appeared first on PYMNTS.com.", "date_published": "2024-08-13T17:00:53-04:00", "date_modified": "2024-08-13T17:00:53-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/AI-robocalls.jpg", "tags": [ "46 Labs", "AI", "AI robocalls", "artificial intelligence", "FCC", "News", "PYMNTS News", "Robocalls", "Trevor Francis", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2051784", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/cfpb-outlines-strict-approach-to-ai-regulation-in-financial-services/", "title": "CFPB Wants to Set the Rules for How Banks Use AI", "content_html": "The Consumer Financial Protection Bureau (CFPB) has staked out a clear position on using artificial intelligence (AI) in financial services: There are no exceptions to existing consumer protection laws for new technologies.
\nIn am Aug. 12 comment letter to Treasury Secretary Janet Yellen, the CFPB outlined its approach to regulating AI and other emerging technologies in the financial sector. The agency emphasized that innovation must not come at the expense of consumer protection or fair competition.
\n\u201cAlthough institutions sometimes behave as if there are exceptions to the federal consumer financial protection laws for new technologies, that is not the case,\u201d the CFPB stated in its letter. \u201cRegulators have a legal mandate to ensure that existing rules are enforced with respect to all technologies, including those marketed as new or novel.\u201d
\nThe agency\u2019s position comes as financial institutions increasingly adopt AI and machine learning technologies for everything from customer service to fraud detection and credit underwriting. While these technologies promise increased efficiency and potentially better outcomes for consumers, they also raise concerns about fairness, transparency and compliance with existing regulations.
\nCFPB General Counsel Seth Frotman and Chief Technologist Erie Meyer, who co-signed the letter, said that the agency is closely monitoring the adoption of these technologies.
\n\u201cIf firms cannot manage using a new technology in a lawful way, then they should not use the technology,\u201d they wrote.
\nThe CFPB highlighted several areas of concern, including automated customer service, fraud screening and lending and underwriting decisions. The agency warned that AI-powered customer service tools may provide incorrect information, fail to provide meaningful dispute resolution, and raise privacy and security risks.
\nRegarding fraud screening, the CFPB cautioned that such activities conducted as part of a transaction for a consumer financial product or service must comply with relevant laws, including the Consumer Financial Protection Act and, in some cases, the Equal Credit Opportunity Act.
\nFor lending and underwriting decisions, the agency emphasized that the Equal Credit Opportunity Act applies regardless of the complexity of the technology used, \u201cincluding when it comes to combatting unlawful discrimination or explaining how certain credit decisions are made.\u201d
\nThe CFPB\u2019s approach marks a departure from previous efforts to encourage innovation through regulatory \u201csandboxes\u201d and No Action Letters. The agency found that these programs \u201cfell short of their intended purpose of encouraging pro-consumer innovation in financial markets\u201d and sometimes resulted in waiving important consumer protections.
\nInstead, the CFPB is turning its focus to creating a level playing field for all market participants.
\n\u201cInnovation is fostered when regulators ensure that all market participants adhere to the same set of rules and compete on a level playing field,\u201d the letter stated.
\nTo achieve this goal, the agency outlined several initiatives, including providing clear guidance on applying existing laws to new technologies, ensuring regulations don\u2019t stifle competition or favor incumbents, combating anticompetitive practices and proposing rules to make it easier for consumers to switch financial service providers.
\nThe CFPB\u2019s stance aligns with a growing trend among regulators worldwide to scrutinize the use of AI in financial services. In Europe, the AI Act imposes strict rules on the use of AI systems in various sectors, including finance.
\nAs part of its oversight efforts, the CFPB is taking steps to evaluate how companies are testing the algorithms they use to make lending decisions to ensure compliance with the law, including the prohibition against discrimination based on protected characteristics. The agency is also closely tracking how tech firms are expanding into banking-like services in virtual worlds and monitoring the potential misuse of generative AI tools for fraud.
\nAdditionally, the CFPB has proposed to subject large technology companies that offer services like digital wallets and payment apps to its supervisory process, aligning oversight of their offering of consumer financial products or services with that of banks and other financial institutions.
\nAs AI continues to reshape the financial services landscape, the CFPB\u2019s position signals that regulators are determined to keep pace with technological change. The agency concluded its letter by emphasizing that \u201cartificial intelligence\u201d is just one aspect of the rapid adoption of new technologies in the consumer financial marketplace, accompanied by new risks and challenges that the CFPB is keenly focused on.
\nWith this clear statement of intent, financial institutions and FinTech companies alike must carefully navigate the regulatory landscape as they seek to harness the power of AI and other emerging technologies. The CFPB\u2019s approach means that innovation in financial services will be expected to occur within the bounds of existing consumer protection laws, with no special exemptions for new technologies.
\nThe post CFPB Wants to Set the Rules for How Banks Use AI appeared first on PYMNTS.com.
\n", "content_text": "The Consumer Financial Protection Bureau (CFPB) has staked out a clear position on using artificial intelligence (AI) in financial services: There are no exceptions to existing consumer protection laws for new technologies.\nIn am Aug. 12 comment letter to Treasury Secretary Janet Yellen, the CFPB outlined its approach to regulating AI and other emerging technologies in the financial sector. The agency emphasized that innovation must not come at the expense of consumer protection or fair competition.\n\u201cAlthough institutions sometimes behave as if there are exceptions to the federal consumer financial protection laws for new technologies, that is not the case,\u201d the CFPB stated in its letter. \u201cRegulators have a legal mandate to ensure that existing rules are enforced with respect to all technologies, including those marketed as new or novel.\u201d\nThe agency\u2019s position comes as financial institutions increasingly adopt AI and machine learning technologies for everything from customer service to fraud detection and credit underwriting. While these technologies promise increased efficiency and potentially better outcomes for consumers, they also raise concerns about fairness, transparency and compliance with existing regulations.\nCFPB General Counsel Seth Frotman and Chief Technologist Erie Meyer, who co-signed the letter, said that the agency is closely monitoring the adoption of these technologies.\n\u201cIf firms cannot manage using a new technology in a lawful way, then they should not use the technology,\u201d they wrote.\nCFPB Concerns\nThe CFPB highlighted several areas of concern, including automated customer service, fraud screening and lending and underwriting decisions. The agency warned that AI-powered customer service tools may provide incorrect information, fail to provide meaningful dispute resolution, and raise privacy and security risks.\nRegarding fraud screening, the CFPB cautioned that such activities conducted as part of a transaction for a consumer financial product or service must comply with relevant laws, including the Consumer Financial Protection Act and, in some cases, the Equal Credit Opportunity Act.\nFor lending and underwriting decisions, the agency emphasized that the Equal Credit Opportunity Act applies regardless of the complexity of the technology used, \u201cincluding when it comes to combatting unlawful discrimination or explaining how certain credit decisions are made.\u201d\nThe CFPB\u2019s approach marks a departure from previous efforts to encourage innovation through regulatory \u201csandboxes\u201d and No Action Letters. The agency found that these programs \u201cfell short of their intended purpose of encouraging pro-consumer innovation in financial markets\u201d and sometimes resulted in waiving important consumer protections.\nInstead, the CFPB is turning its focus to creating a level playing field for all market participants.\n\u201cInnovation is fostered when regulators ensure that all market participants adhere to the same set of rules and compete on a level playing field,\u201d the letter stated.\nTo achieve this goal, the agency outlined several initiatives, including providing clear guidance on applying existing laws to new technologies, ensuring regulations don\u2019t stifle competition or favor incumbents, combating anticompetitive practices and proposing rules to make it easier for consumers to switch financial service providers.\nAI in Finance Draws Global Scrutiny\nThe CFPB\u2019s stance aligns with a growing trend among regulators worldwide to scrutinize the use of AI in financial services. In Europe, the AI Act imposes strict rules on the use of AI systems in various sectors, including finance.\nAs part of its oversight efforts, the CFPB is taking steps to evaluate how companies are testing the algorithms they use to make lending decisions to ensure compliance with the law, including the prohibition against discrimination based on protected characteristics. The agency is also closely tracking how tech firms are expanding into banking-like services in virtual worlds and monitoring the potential misuse of generative AI tools for fraud.\nAdditionally, the CFPB has proposed to subject large technology companies that offer services like digital wallets and payment apps to its supervisory process, aligning oversight of their offering of consumer financial products or services with that of banks and other financial institutions.\nAs AI continues to reshape the financial services landscape, the CFPB\u2019s position signals that regulators are determined to keep pace with technological change. The agency concluded its letter by emphasizing that \u201cartificial intelligence\u201d is just one aspect of the rapid adoption of new technologies in the consumer financial marketplace, accompanied by new risks and challenges that the CFPB is keenly focused on.\nWith this clear statement of intent, financial institutions and FinTech companies alike must carefully navigate the regulatory landscape as they seek to harness the power of AI and other emerging technologies. The CFPB\u2019s approach means that innovation in financial services will be expected to occur within the bounds of existing consumer protection laws, with no special exemptions for new technologies.\nThe post CFPB Wants to Set the Rules for How Banks Use AI appeared first on PYMNTS.com.", "date_published": "2024-08-13T12:38:23-04:00", "date_modified": "2024-08-13T21:38:25-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/05/cfpb-4.jpg", "tags": [ "AI", "AI Act", "AI regulation", "artificial intelligence", "bank regulations", "banking", "Banks", "CFPB", "Consumer Financial Protection Bureau", "Featured News", "financial institutions", "financial services", "FIS", "News", "PYMNTS News", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2051268", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/could-ai-powered-humanoid-robots-be-coming-to-retail-stores/", "title": "Could AI-Powered Humanoid Robots Be Coming to Retail Stores?", "content_html": "The potential for artificial intelligence (AI) humanoid robots in factories and stores is sparking debate among experts on the future of work and commerce.
\nWhile companies explore humanoid robots for tasks from assembly to customer service, opinions vary widely on their adoption rate and implications. The consensus among experts leans toward gradual integration rather than rapid revolution, with key challenges in technology development, workforce adaptation, and customer acceptance still to be overcome.
\n\u201cAs Henry Ford said, \u2018Why is it that I always get a whole person when all I want is a pair of hands?\u2019 This sentiment applies here too,\u201d Ding Zhao, associate professor of mechanical engineering at Carnegie Mellon University, told PYMNTS. This skepticism highlights the ongoing debate about the most effective forms of automation in various industries.
\nRobotics have been a staple in industrial manufacturing for decades, with a complex impact on employment. Mica Endsley, government relations chair at the Human Factors and Ergonomics Society, told PYMNTS, \u201cThey tend to create both higher-skilled, higher-waged jobs, as well as some lower-skilled, lower-wage jobs.\u201d This nuanced view provides context for the current wave of interest in more advanced, AI-driven robots.
\nRecent trials, like BMW\u2019s test of the \u201cFigure 02\u201d robot in chassis assembly, showcase the current capabilities of humanoid robots. In a news release, Milan Nedeljkovi\u0107, BMW\u2019s board member for production, said, \u201cWith an early test operation, we are now determining possible applications for humanoid robots in production.\u201d This real-world application demonstrates the auto industry\u2019s commitment to exploring automation technologies.
\nHowever, the road to widespread adoption may be longer than some anticipate. Andy Williams, EVP of North America at Exotec, told PYMNTS, \u201cThe time frame for practical use of humanoid robots in the warehouse is easily five-plus years down the road, giving the workforce time to transition.\u201d This perspective highlights the gap between current capabilities and industry requirements.
\nAs the technology develops, its impact on employment and customer service remains a topic of debate. Maria Kyrarini, assistant professor at Santa Clara University, told PYMNTS, \u201cThere is an opportunity for upskilling or reskilling workers, who the robots may displace, to take over new roles in an environment with humanoid robots.\u201d
\nOpportunities for new roles balance the potential for job displacement. Williams predicted, \u201cNew services associated with the support of these robotics include the extension of advertising mediums through humanoids or more comprehensive bundling of services to offset capital costs.\u201d
\nIn customer-facing roles, functionality may trump appearance. Endsley emphasized, \u201cJust like with many systems that companies adopt, such as chatbots or phone-based voice menus if the technology is not capable of addressing customers\u2019 questions and needs, they will become frustrated and go elsewhere.\u201d
\nRecent research in Japan suggests that even limited robot interactions can influence customer behavior. Kyrarini reported, \u201cA recent study was conducted in Japan about having a service robot in a bakery shop to greet customers and provide product information. The study found no increase in the number of customers visiting the bakery, but the robot recommendations to the customers had an impact.\u201d
\nIntegrating humanoid robots in commerce is expected to alter workplace relationships. Endsley warned, \u201cNow that inter-office communications are largely handled by email, text or video calls, for example, we often see a decrease in the direct interaction and relationship building that would otherwise occur naturally in companies.\u201d
\nPat Marsh,\u00a0principal designer at argodesign and a designer behind the NASA-backed humanoid robot Apollo, sees potential for new business models.\u00a0
\n\u201cMuch of our maintenance and care labor is undervalued at least by economic standards,\u201d he told PYMNTS. \u201cI like to think of robots as a possible leverage to our tendencies that are inherent to capitalism and GDP-driven economics, in that robots can do the work we find too expensive for humans to do well.\u201d
\nExperts agree that the key to successful integration is careful planning and human-centered design. Williams said, \u201cWe can draw a parallel between how human workers have learned to accept AI and use it in their daily workplaces and how we can expect the humanoid robotics transition to unfold if done carefully and correctly.\u201d
\nAs the retail and manufacturing sectors continue their robotic explorations, they focus on developing machines that can effectively meet human needs, regardless of how humanlike they appear. Marsh concluded, \u201cPeople need exposure to robots in ways that reinforce good expectations. They also need patterns of behavior that set clear boundaries.\u201d
\nFor all PYMNTS AI coverage, subscribe to the daily AI\u00a0Newsletter.
\nThe post Could AI-Powered Humanoid Robots Be Coming to Retail Stores? appeared first on PYMNTS.com.
\n", "content_text": "The potential for artificial intelligence (AI) humanoid robots in factories and stores is sparking debate among experts on the future of work and commerce.\nWhile companies explore humanoid robots for tasks from assembly to customer service, opinions vary widely on their adoption rate and implications. The consensus among experts leans toward gradual integration rather than rapid revolution, with key challenges in technology development, workforce adaptation, and customer acceptance still to be overcome.\n\u201cAs Henry Ford said, \u2018Why is it that I always get a whole person when all I want is a pair of hands?\u2019 This sentiment applies here too,\u201d Ding Zhao, associate professor of mechanical engineering at Carnegie Mellon University, told PYMNTS. This skepticism highlights the ongoing debate about the most effective forms of automation in various industries.\nCurrent State of Robotics\nRobotics have been a staple in industrial manufacturing for decades, with a complex impact on employment. Mica Endsley, government relations chair at the Human Factors and Ergonomics Society, told PYMNTS, \u201cThey tend to create both higher-skilled, higher-waged jobs, as well as some lower-skilled, lower-wage jobs.\u201d This nuanced view provides context for the current wave of interest in more advanced, AI-driven robots.\nRecent trials, like BMW\u2019s test of the \u201cFigure 02\u201d robot in chassis assembly, showcase the current capabilities of humanoid robots. In a news release, Milan Nedeljkovi\u0107, BMW\u2019s board member for production, said, \u201cWith an early test operation, we are now determining possible applications for humanoid robots in production.\u201d This real-world application demonstrates the auto industry\u2019s commitment to exploring automation technologies.\nHowever, the road to widespread adoption may be longer than some anticipate. Andy Williams, EVP of North America at Exotec, told PYMNTS, \u201cThe time frame for practical use of humanoid robots in the warehouse is easily five-plus years down the road, giving the workforce time to transition.\u201d This perspective highlights the gap between current capabilities and industry requirements.\nFuture of Work and Customer Service\nAs the technology develops, its impact on employment and customer service remains a topic of debate. Maria Kyrarini, assistant professor at Santa Clara University, told PYMNTS, \u201cThere is an opportunity for upskilling or reskilling workers, who the robots may displace, to take over new roles in an environment with humanoid robots.\u201d\nOpportunities for new roles balance the potential for job displacement. Williams predicted, \u201cNew services associated with the support of these robotics include the extension of advertising mediums through humanoids or more comprehensive bundling of services to offset capital costs.\u201d\nIn customer-facing roles, functionality may trump appearance. Endsley emphasized, \u201cJust like with many systems that companies adopt, such as chatbots or phone-based voice menus if the technology is not capable of addressing customers\u2019 questions and needs, they will become frustrated and go elsewhere.\u201d\nRecent research in Japan suggests that even limited robot interactions can influence customer behavior. Kyrarini reported, \u201cA recent study was conducted in Japan about having a service robot in a bakery shop to greet customers and provide product information. The study found no increase in the number of customers visiting the bakery, but the robot recommendations to the customers had an impact.\u201d\nIntegrating humanoid robots in commerce is expected to alter workplace relationships. Endsley warned, \u201cNow that inter-office communications are largely handled by email, text or video calls, for example, we often see a decrease in the direct interaction and relationship building that would otherwise occur naturally in companies.\u201d\nPat Marsh,\u00a0principal designer at argodesign and a designer behind the NASA-backed humanoid robot Apollo, sees potential for new business models.\u00a0\n\u201cMuch of our maintenance and care labor is undervalued at least by economic standards,\u201d he told PYMNTS. \u201cI like to think of robots as a possible leverage to our tendencies that are inherent to capitalism and GDP-driven economics, in that robots can do the work we find too expensive for humans to do well.\u201d\nExperts agree that the key to successful integration is careful planning and human-centered design. Williams said, \u201cWe can draw a parallel between how human workers have learned to accept AI and use it in their daily workplaces and how we can expect the humanoid robotics transition to unfold if done carefully and correctly.\u201d\nAs the retail and manufacturing sectors continue their robotic explorations, they focus on developing machines that can effectively meet human needs, regardless of how humanlike they appear. Marsh concluded, \u201cPeople need exposure to robots in ways that reinforce good expectations. They also need patterns of behavior that set clear boundaries.\u201d\nFor all PYMNTS AI coverage, subscribe to the daily AI\u00a0Newsletter.\nThe post Could AI-Powered Humanoid Robots Be Coming to Retail Stores? appeared first on PYMNTS.com.", "date_published": "2024-08-12T16:14:45-04:00", "date_modified": "2024-08-12T16:14:45-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/bmw-factory-view-cropped.png", "tags": [ "AI", "Andy Williams", "argodesign", "artificial intelligence", "BMW", "carnegie mellon university", "Ding Zhao", "Exotec", "Human Factors and Ergonomics Society", "humanoid robots", "manufacturing", "Maria Kyrarini", "Mica Endsley", "Milan Nedeljkovi\u0107", "News", "Pat Marsh", "PYMNTS News", "Retail", "robotics", "Robots", "Santa Clara University", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2051149", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/ai-explained-chain-of-thought-ai-shows-its-decision-making/", "title": "AI Explained: Chain-of-Thought AI Shows Its Decision-Making", "content_html": "Chain-of-thought AI, a new approach aimed at making artificial intelligence systems more transparent and interpretable, has gained attention as a potential solution to the longstanding \u201cblack box\u201d problem in machine learning.\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b
\nChain-of-thought (CoT) AI is designed to provide step-by-step explanations of its decision-making process. By revealing the intermediate steps in its reasoning, CoT AI allows researchers and users to better understand how the system arrives at its conclusions. This increased transparency can potentially enhance accountability in AI-driven organizations. \u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b
\nNew techniques have made language AI better at solving problems by delineating steps. Scientists are exploring if these methods can also make robots smarter. They\u2019ve created a system called \u201cembodied chain-of-thought reasoning\u201d to help AI models analyze their tasks and surroundings before they act.\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b
\nThe development of CoT AI aligns with a growing emphasis on explainable AI (XAI) in the tech industry and research community. As AI systems are increasingly deployed in critical areas such as healthcare, finance and legal services, the ability to scrutinize and understand AI decision-making processes is crucial.
\nProponents of chain-of-thought AI suggest that this approach could accelerate the adoption of AI in fields where interpretability is essential. By providing insight into the AI system\u2019s reasoning, it may become easier to identify and address potential biases or errors.
\nRemember those math teachers who always insisted you show your work? Chain-of-thought AI is that teacher\u2019s dream come true. When asked a question, CoT AI doesn\u2019t just blurt out an answer. Instead, it lays out its reasoning step by step.
\nTake a classic word problem: \u201cIf a train leaves Chicago at 2 p.m. going 60 mph, and another train leaves New York at 4 p.m. going 75 mph, when will they meet?\u201d A traditional AI may crunch the numbers and spit out a time. But a CoT-enabled AI is more like that enthusiastic kid in class who walks you through every calculation, from figuring out the distance between cities to accounting for the time difference.
\nThis isn\u2019t just about impressing math teachers, though. Researchers at Google Brain have shown that this approach can significantly boost AI performance on complex reasoning tasks. Their paper, posted on Arxiv, a non-peer-reviewed journal site, demonstrated that CoT could help AI tackle everything from basic arithmetic to mind-bending logic puzzles.
\nBut chain-of-thought isn\u2019t confined to the realm of textbook problems. It\u2019s making waves in fields where the stakes are much higher than a grade on a math test. For instance, researchers at Stanford University are exploring how CoT can make medical AI systems more transparent. Imagine a future where an AI doesn\u2019t just suggest a diagnosis but explains its reasoning in a way that doctors and patients can understand. \u201cWell, given the patient\u2019s elevated white blood cell count, combined with the localized pain in the lower right abdomen, I\u2019m leaning toward appendicitis. Here\u2019s why …\u201d
\nCoT could potentially help turn AI tutors from stern taskmasters into patient explainers in education. A study from Carnegie Mellon University showed that CoT-enhanced tutoring systems could significantly improve student learning outcomes in mathematics. It\u2019s like having a tutor who knows all the answers and can break down complex concepts into bite-sized, digestible pieces.
\nOf course, like any budding technology, chain-of-thought has its growing pains. For one, all this explaining takes a lot of computational power. It\u2019s the difference between asking someone for a quick yes or no versus sitting them down for a TED talk.
\nKeeping AI\u2019s \u201cthoughts\u201d on track is also challenging. Just as humans can sometimes follow a train of thought right off a cliff, AI can sometimes produce reasoning chains that appear more \u201cstream of consciousness\u201d than \u201clogical deduction.\u201d
\nSome computer scientists are even pushing the boundaries further. Researchers at DeepMind, for instance, have developed a technique called \u201cTree of Thoughts,\u201d which allows AI to explore multiple reasoning paths simultaneously. It\u2019s like giving AI the ability to brainstorm with itself.
\nThe rise of chain-of-thought AI is changing how we think about artificial intelligence. This new approach focuses on making AI decision-making clear and understandable.
\nFor all PYMNTS AI coverage, subscribe to the daily\u00a0AI\u00a0Newsletter.
\nThe post AI Explained: Chain-of-Thought AI Shows Its Decision-Making appeared first on PYMNTS.com.
\n", "content_text": "Chain-of-thought AI, a new approach aimed at making artificial intelligence systems more transparent and interpretable, has gained attention as a potential solution to the longstanding \u201cblack box\u201d problem in machine learning.\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\nChain-of-thought (CoT) AI is designed to provide step-by-step explanations of its decision-making process. By revealing the intermediate steps in its reasoning, CoT AI allows researchers and users to better understand how the system arrives at its conclusions. This increased transparency can potentially enhance accountability in AI-driven organizations. \u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\nNew techniques have made language AI better at solving problems by delineating steps. Scientists are exploring if these methods can also make robots smarter. They\u2019ve created a system called \u201cembodied chain-of-thought reasoning\u201d to help AI models analyze their tasks and surroundings before they act.\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\u200b\nThe development of CoT AI aligns with a growing emphasis on explainable AI (XAI) in the tech industry and research community. As AI systems are increasingly deployed in critical areas such as healthcare, finance and legal services, the ability to scrutinize and understand AI decision-making processes is crucial.\nProponents of chain-of-thought AI suggest that this approach could accelerate the adoption of AI in fields where interpretability is essential. By providing insight into the AI system\u2019s reasoning, it may become easier to identify and address potential biases or errors.\nFrom \u2018What\u2019s 2+2?\u2019 to \u2018Why Is the Sky Blue?\u2019\nRemember those math teachers who always insisted you show your work? Chain-of-thought AI is that teacher\u2019s dream come true. When asked a question, CoT AI doesn\u2019t just blurt out an answer. Instead, it lays out its reasoning step by step.\nTake a classic word problem: \u201cIf a train leaves Chicago at 2 p.m. going 60 mph, and another train leaves New York at 4 p.m. going 75 mph, when will they meet?\u201d A traditional AI may crunch the numbers and spit out a time. But a CoT-enabled AI is more like that enthusiastic kid in class who walks you through every calculation, from figuring out the distance between cities to accounting for the time difference.\nThis isn\u2019t just about impressing math teachers, though. Researchers at Google Brain have shown that this approach can significantly boost AI performance on complex reasoning tasks. Their paper, posted on Arxiv, a non-peer-reviewed journal site, demonstrated that CoT could help AI tackle everything from basic arithmetic to mind-bending logic puzzles.\nBut chain-of-thought isn\u2019t confined to the realm of textbook problems. It\u2019s making waves in fields where the stakes are much higher than a grade on a math test. For instance, researchers at Stanford University are exploring how CoT can make medical AI systems more transparent. Imagine a future where an AI doesn\u2019t just suggest a diagnosis but explains its reasoning in a way that doctors and patients can understand. \u201cWell, given the patient\u2019s elevated white blood cell count, combined with the localized pain in the lower right abdomen, I\u2019m leaning toward appendicitis. Here\u2019s why …\u201d\nAI for Education\nCoT could potentially help turn AI tutors from stern taskmasters into patient explainers in education. A study from Carnegie Mellon University showed that CoT-enhanced tutoring systems could significantly improve student learning outcomes in mathematics. It\u2019s like having a tutor who knows all the answers and can break down complex concepts into bite-sized, digestible pieces.\nOf course, like any budding technology, chain-of-thought has its growing pains. For one, all this explaining takes a lot of computational power. It\u2019s the difference between asking someone for a quick yes or no versus sitting them down for a TED talk.\nKeeping AI\u2019s \u201cthoughts\u201d on track is also challenging. Just as humans can sometimes follow a train of thought right off a cliff, AI can sometimes produce reasoning chains that appear more \u201cstream of consciousness\u201d than \u201clogical deduction.\u201d\nSome computer scientists are even pushing the boundaries further. Researchers at DeepMind, for instance, have developed a technique called \u201cTree of Thoughts,\u201d which allows AI to explore multiple reasoning paths simultaneously. It\u2019s like giving AI the ability to brainstorm with itself.\nThe rise of chain-of-thought AI is changing how we think about artificial intelligence. This new approach focuses on making AI decision-making clear and understandable.\n\nFor all PYMNTS AI coverage, subscribe to the daily\u00a0AI\u00a0Newsletter.\n\nThe post AI Explained: Chain-of-Thought AI Shows Its Decision-Making appeared first on PYMNTS.com.", "date_published": "2024-08-12T14:39:28-04:00", "date_modified": "2024-08-12T14:39:28-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/chain-of-thought-AI.png", "tags": [ "AI", "artificial intelligence", "Chain-of-Thought AI", "Google", "IBM", "News", "PYMNTS News", "Technology", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2050521", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/dc-connected-car-raises-2-29-million-for-ai-powered-remote-auto-diagnostics/", "title": "DC Connected Car Raises $2.29 Million for AI-Powered Remote Auto Diagnostics", "content_html": "DC Connected Car has raised \u20ac2.1 million ($2.29 million) for its artificial intelligence (AI)-driven remote vehicle diagnostics offering.
\nThe seed funding round, announced last week in a post on the German company\u2019s blog, will help DC Connected Car develop AI diagnostic tools for roadside assistance, warranty and repair.
\n\u201cAI has the potential to revolutionize various automotive areas that Borusan operates in, such as aftersales, fleets and used car business,\u201d said Timo Kilp, whose Borusan Ventures took part in the funding round.\u00a0
\n\u201cWe believe DC Connected\u2019s AI-driven digital technician holds significant promise to accelerate the diagnosis and repair of vehicle issues, further enhancing our customer service.\u201d
\nAccording to the blog post, DC Connected Car offers a virtual technician platform aimed at easing a shortage of skilled labor in the automotive industry.\u00a0
\n\u201cUnlike conventional diagnostic systems, their AI-driven solution delivers automated, intelligent insights into vehicle health and performance, providing real-time problem-solution recommendations,\u201d the post said.\u00a0
\n\u201cThis approach not only minimizes the need for physical inspections and repairs but also seamlessly integrates into customers\u2019 lives by offering remote support.\u201d\u00a0
\nThe funding round comes at a time when AI is unlocking potential across the auto industry, as PYMNTS wrote last month.
\n\u201cThe technology has the capacity to transform the sector across vehicle design, manufacturing and customer experience,\u201d that report said.
\n\u201cBy enabling rapid design iterations, virtual testing and optimization of manufacturing processes, generative AI could significantly reduce time to market. It can also enhance personalization, improve safety features and support the development of autonomous vehicles.\u201d
\nHowever, that report added, widespread adoption has its challenges, such as accurately predicting performance metrics and ensuring the manufacturability of AI-generated designs, as well as the need to navigate ethical and regulatory environments around the technology\u2019s data privacy and security concerns.\u00a0
\nAI is also helping transform the experience of buying and selling a car, Steven Silver, managing director, Automotive, Transportation & Mobility for Publicis Sapient and Publicis Groupe, told PYMNTS in an interview earlier this year.
\n\u201cCurrently, numerous companies are exploring AI\u2019s potential to enhance their operations,\u201d Silver said. \u201cOnce integrated and scaled, AI is poised to have a profound impact on the mobility industry. However, business leaders must be willing to embrace AI experimentation. It\u2019s important to capture the opportunity now, rather than wait for perfection and mass adoption.\u201d
\nHe told PYMNTS he foresees two ways AI could improve the customer experience: predictive maintenance and in-vehicle personalization, as well as removing friction from the car-buying journey by giving car dealers market behavior data based on buying patterns across a collection of data points.
\n\u00a0
\nThe post DC Connected Car Raises $2.29 Million for AI-Powered Remote Auto Diagnostics appeared first on PYMNTS.com.
\n", "content_text": "DC Connected Car has raised \u20ac2.1 million ($2.29 million) for its artificial intelligence (AI)-driven remote vehicle diagnostics offering.\nThe seed funding round, announced last week in a post on the German company\u2019s blog, will help DC Connected Car develop AI diagnostic tools for roadside assistance, warranty and repair.\n\u201cAI has the potential to revolutionize various automotive areas that Borusan operates in, such as aftersales, fleets and used car business,\u201d said Timo Kilp, whose Borusan Ventures took part in the funding round.\u00a0\n\u201cWe believe DC Connected\u2019s AI-driven digital technician holds significant promise to accelerate the diagnosis and repair of vehicle issues, further enhancing our customer service.\u201d\nAccording to the blog post, DC Connected Car offers a virtual technician platform aimed at easing a shortage of skilled labor in the automotive industry.\u00a0\n\u201cUnlike conventional diagnostic systems, their AI-driven solution delivers automated, intelligent insights into vehicle health and performance, providing real-time problem-solution recommendations,\u201d the post said.\u00a0\n\u201cThis approach not only minimizes the need for physical inspections and repairs but also seamlessly integrates into customers\u2019 lives by offering remote support.\u201d\u00a0\nThe funding round comes at a time when AI is unlocking potential across the auto industry, as PYMNTS wrote last month.\n\u201cThe technology has the capacity to transform the sector across vehicle design, manufacturing and customer experience,\u201d that report said.\n\u201cBy enabling rapid design iterations, virtual testing and optimization of manufacturing processes, generative AI could significantly reduce time to market. It can also enhance personalization, improve safety features and support the development of autonomous vehicles.\u201d\nHowever, that report added, widespread adoption has its challenges, such as accurately predicting performance metrics and ensuring the manufacturability of AI-generated designs, as well as the need to navigate ethical and regulatory environments around the technology\u2019s data privacy and security concerns.\u00a0\nAI is also helping transform the experience of buying and selling a car, Steven Silver, managing director, Automotive, Transportation & Mobility for Publicis Sapient and Publicis Groupe, told PYMNTS in an interview earlier this year.\n\u201cCurrently, numerous companies are exploring AI\u2019s potential to enhance their operations,\u201d Silver said. \u201cOnce integrated and scaled, AI is poised to have a profound impact on the mobility industry. However, business leaders must be willing to embrace AI experimentation. It\u2019s important to capture the opportunity now, rather than wait for perfection and mass adoption.\u201d\nHe told PYMNTS he foresees two ways AI could improve the customer experience: predictive maintenance and in-vehicle personalization, as well as removing friction from the car-buying journey by giving car dealers market behavior data based on buying patterns across a collection of data points.\n\u00a0\nThe post DC Connected Car Raises $2.29 Million for AI-Powered Remote Auto Diagnostics appeared first on PYMNTS.com.", "date_published": "2024-08-11T17:59:49-04:00", "date_modified": "2024-08-11T18:01:14-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/DC-Connected-Car.jpg", "tags": [ "AI", "artificial intelligence", "automotive", "Borusan Ventures", "connected cars", "DC Connected Car", "funding", "News", "PYMNTS News", "remote vehicle diagnostics", "seed funding", "Timo Kilp", "What's Hot", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2049572", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/x-stops-using-some-eu-user-posts-for-ai-training/", "title": "X Stops Using Some EU User Posts for AI Training", "content_html": "Ireland\u2019s Data Protection Commission (DPC) said Thursday (Aug. 8) that X has agreed to suspend the use of personal data from some users\u2019 public posts on the social media platform to train the artificial intelligence (AI) model, Grok.\u00a0
\nThis agreement applies to public posts that were made by European Union (EU) and European Economic Area (EEA) users of X and were processed by the company between May 7 and Aug. 1, the DPC said in a Thursday press release.
\nThe processing will be suspended while the DPC and other EU and EEA regulators investigate whether this use of the public posts complies with the General Data Protection Regulation (GDPR), according to the release.
\nThe agreement came as the DPC brought a court case against X focused on its use of the data, and after \u201cextensive engagement\u201d between the DPC and X, per the release.
\n\u201cOne of our main roles as an independent regulator and rights-based organization is to ensure the best outcome for data subjects and today\u2019s developments will help us to continue protecting the rights and freedoms of X users across the EU and EEA,\u201d DPC Commissioner Des Hogan said in the release.
\n\u201cWe will continue to engage with all data controllers to ensure the rights of our citizens under the EU Charter of Fundamental Rights and the GDPR are upheld.\u201d
\nA lawyer for X told the Irish court hearing the case brought by the DPC that the company would stop using the data until the court makes a decision in the case, Reuters reported Thursday.
\nA judge had determined that X began processing EU users\u2019 data to train AI systems on May 7 but didn\u2019t begin rolling out the option for users to opt out until July 16, according to the report.
\nThe company\u2019s lawyers plan to file opposition papers against the suspension order by Sept. 4, per the report.
\nIn a Wednesday (Aug. 7) post on the social media platform, X Global Government Affairs said that X communicated to users how it uses data to train AI, provides a simple control that allows users to decide if their public posts can be used for AI training, and allows users to control their interactions with Grok.
\n\u201cThe order that the Irish DPC has sought is unwarranted, overbroad and singles out X without any justification. This is deeply troubling,\u201d X Global Government Affairs said in the post.
\n\u201cThe order applies not just to Grok but to any AI model that X uses, potentially impacting our work to keep the platform safe and possibly the ability to offer X in the EU,\u201d it added.
\nThe post X Stops Using Some EU User Posts for AI Training appeared first on PYMNTS.com.
\n", "content_text": "Ireland\u2019s Data Protection Commission (DPC) said Thursday (Aug. 8) that X has agreed to suspend the use of personal data from some users\u2019 public posts on the social media platform to train the artificial intelligence (AI) model, Grok.\u00a0\nThis agreement applies to public posts that were made by European Union (EU) and European Economic Area (EEA) users of X and were processed by the company between May 7 and Aug. 1, the DPC said in a Thursday press release.\nThe processing will be suspended while the DPC and other EU and EEA regulators investigate whether this use of the public posts complies with the General Data Protection Regulation (GDPR), according to the release.\nThe agreement came as the DPC brought a court case against X focused on its use of the data, and after \u201cextensive engagement\u201d between the DPC and X, per the release.\n\u201cOne of our main roles as an independent regulator and rights-based organization is to ensure the best outcome for data subjects and today\u2019s developments will help us to continue protecting the rights and freedoms of X users across the EU and EEA,\u201d DPC Commissioner Des Hogan said in the release. \n\u201cWe will continue to engage with all data controllers to ensure the rights of our citizens under the EU Charter of Fundamental Rights and the GDPR are upheld.\u201d\nA lawyer for X told the Irish court hearing the case brought by the DPC that the company would stop using the data until the court makes a decision in the case, Reuters reported Thursday.\nA judge had determined that X began processing EU users\u2019 data to train AI systems on May 7 but didn\u2019t begin rolling out the option for users to opt out until July 16, according to the report.\nThe company\u2019s lawyers plan to file opposition papers against the suspension order by Sept. 4, per the report.\nIn a Wednesday (Aug. 7) post on the social media platform, X Global Government Affairs said that X communicated to users how it uses data to train AI, provides a simple control that allows users to decide if their public posts can be used for AI training, and allows users to control their interactions with Grok.\n\u201cThe order that the Irish DPC has sought is unwarranted, overbroad and singles out X without any justification. This is deeply troubling,\u201d X Global Government Affairs said in the post.\n\u201cThe order applies not just to Grok but to any AI model that X uses, potentially impacting our work to keep the platform safe and possibly the ability to offer X in the EU,\u201d it added.\nThe post X Stops Using Some EU User Posts for AI Training appeared first on PYMNTS.com.", "date_published": "2024-08-08T16:58:59-04:00", "date_modified": "2024-08-08T16:58:59-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Grok-X-AI.jpg", "tags": [ "AI", "AI training", "artificial intelligence", "Data Protection Commission", "Des Hogan", "GDPR", "GenAI", "General Data Protection Regulation", "generative AI", "Grok", "large language models", "News", "online privacy", "PYMNTS News", "What's Hot", "X", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2039004", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/taco-bell-goes-all-in-on-ai-drive-thrus-as-mcdonalds-steps-back/", "title": "Taco Bell Goes All-in on AI Drive-Thrus as McDonald\u2019s Steps Back", "content_html": "By year\u2019s end, hundreds of Taco Bell drive-thrus could be taking orders without a human on the other end of the speaker. Yum Brands\u2019 ambitious deployment of artificial intelligence (AI) at its flagship Mexican-style fast food chain signals a potential sea change in how America grabs its quick bites.
\nThe initiative outpaces similar efforts by rivals Wendy\u2019s and White Castle. Yum Brands aims to implement AI-powered ordering systems across the United States and globally.
\n\u201cThe AI voice technology would enable standardization of the customer journey and experience, which can then be compared across branches globally,\u201d Alina Timofeeva, an expert in technology and data risk, told PYMNTS.
\nTaco Bell joins a growing cadre of quick service restaurants, traditional restaurants and delivery services which have been testing the technology to streamline the ordering process. Food delivery services like Uber Eats and DoorDash are using AI chatbots to personalize customer recommendations and improve ordering.
\nLast December, McDonald\u2019s said it is partnering with Google Cloud to use AI to streamline operations and enhance customer experiences. The fast-food giant plans to implement AI in back-of-house tasks and launch new digital platforms in 2024. But a test of AI tech in drive-thrus was halted recently and the company plans to take another look at the program.
\nFor their part, consumers seem to be open to idea of food ordering with AI, according to the PYMNTS Intelligence study, \u201cHow Consumers Want To Live In The Voice Economy.\u201d That data shows nearly 40% of consumers believe voice recognition technology will be as advanced as human conversation within five years; and 63% say they would use voice now if it were as capable as a person, because it is easier and more convenient.
\nAt Taco Bell, the AI experiment began in 2021 with just five locations. By May 2023, 30 California restaurants were using the technology. Over 100 of Taco Bell’s nearly 7,700 U.S. locations now employ AI order-takers, with hundreds more slated to join by December.
\nAccording to Lawrence Kim, Yum Brands\u2019 chief innovation officer, two years of testing form the foundation for the company\u2019s confidence. Reports indicate improved order accuracy and reduced wait times, addressing key industry pain points. In 2022, the average drive-thru wait across major chains stretched to 6 minutes and 13 seconds, up from 5 minutes and 57 seconds in 2021, SeeLevel HX reported.
\nTimofeeva paints a picture of AI\u2019s potential to transform Taco Bell\u2019s operations from top to bottom. The technology could dissect customer satisfaction, pinpointing exactly what delights or frustrates diners \u2014 whether it\u2019s long wait times, high prices or limited menu options. These insights would cascade to staff, enabling teams to refine customer interactions.
\nBeyond the counter, AI\u2019s influence could extend to the menu, revealing which items sell well and why, Timofeeva said. This data-driven approach promises a Taco Bell more responsive to customers\u2019 tastes and expectations, potentially revolutionizing the fast-food experience. By helping firms understand customer preferences, improve staff performance and optimize the product lineup, AI could help Taco Bell serve a more satisfying meal, literally and figuratively.
\nThe financial implications are significant for Taco Bell, which says it saw global system-wide sales of $14 billion in 2022. This technology promises to address labor shortages and rising wages while potentially boosting sales through automated upselling.
\nYet Timofeeva cautions against overlooking the human element. \u201cTo minimize the complaints, there needs to be sufficient staff available to deal with any concerns and ensure continued customer satisfaction,\u201d she said.
\nTaco Bell\u2019s late entry into AI-powered ordering may prove advantageous. The company can learn from the struggles of early adopters like McDonald\u2019s, which recently scrapped its decade-long experiment with IBM\u2019s automated system. Timofeeva suggests this timing could allow Taco Bell to sidestep common pitfalls and capitalize on recent technological advances. Moreover, she said, the company can benefit from evolving standards in AI ethics and risk management, potentially avoiding the ethical quandaries and technical hiccups that have plagued earlier attempts in the industry.
\nSuccess in this AI implementation could set a new standard for the fast-food industry, where drive-thrus account for 70% of sales at quick-service restaurants, according to QSR Magazine. Yet challenges remain, including privacy concerns and the need to accommodate customers who prefer human interaction.
\nFor all PYMNTS AI coverage, subscribe to the daily\u00a0AI\u00a0Newsletter.
\nThe post Taco Bell Goes All-in on AI Drive-Thrus as McDonald\u2019s Steps Back appeared first on PYMNTS.com.
\n", "content_text": "By year\u2019s end, hundreds of Taco Bell drive-thrus could be taking orders without a human on the other end of the speaker. Yum Brands\u2019 ambitious deployment of artificial intelligence (AI) at its flagship Mexican-style fast food chain signals a potential sea change in how America grabs its quick bites.\nThe initiative outpaces similar efforts by rivals Wendy\u2019s and White Castle. Yum Brands aims to implement AI-powered ordering systems across the United States and globally.\n\u201cThe AI voice technology would enable standardization of the customer journey and experience, which can then be compared across branches globally,\u201d Alina Timofeeva, an expert in technology and data risk, told PYMNTS.\nTaco Bell joins a growing cadre of quick service restaurants, traditional restaurants and delivery services which have been testing the technology to streamline the ordering process. Food delivery services like Uber Eats and DoorDash are using AI chatbots to personalize customer recommendations and improve ordering.\nLast December, McDonald\u2019s said it is partnering with Google Cloud to use AI to streamline operations and enhance customer experiences. The fast-food giant plans to implement AI in back-of-house tasks and launch new digital platforms in 2024. But a test of AI tech in drive-thrus was halted recently and the company plans to take another look at the program.\nFor their part, consumers seem to be open to idea of food ordering with AI, according to the PYMNTS Intelligence study, \u201cHow Consumers Want To Live In The Voice Economy.\u201d That data shows nearly 40% of consumers believe voice recognition technology will be as advanced as human conversation within five years; and 63% say they would use voice now if it were as capable as a person, because it is easier and more convenient.\nFrom Test Kitchen to Global Rollout\nAt Taco Bell, the AI experiment began in 2021 with just five locations. By May 2023, 30 California restaurants were using the technology. Over 100 of Taco Bell’s nearly 7,700 U.S. locations now employ AI order-takers, with hundreds more slated to join by December.\nAccording to Lawrence Kim, Yum Brands\u2019 chief innovation officer, two years of testing form the foundation for the company\u2019s confidence. Reports indicate improved order accuracy and reduced wait times, addressing key industry pain points. In 2022, the average drive-thru wait across major chains stretched to 6 minutes and 13 seconds, up from 5 minutes and 57 seconds in 2021, SeeLevel HX reported.\nTimofeeva paints a picture of AI\u2019s potential to transform Taco Bell\u2019s operations from top to bottom. The technology could dissect customer satisfaction, pinpointing exactly what delights or frustrates diners \u2014 whether it\u2019s long wait times, high prices or limited menu options. These insights would cascade to staff, enabling teams to refine customer interactions.\nBeyond the counter, AI\u2019s influence could extend to the menu, revealing which items sell well and why, Timofeeva said. This data-driven approach promises a Taco Bell more responsive to customers\u2019 tastes and expectations, potentially revolutionizing the fast-food experience. By helping firms understand customer preferences, improve staff performance and optimize the product lineup, AI could help Taco Bell serve a more satisfying meal, literally and figuratively.\nData-Driven Decision Making\nThe financial implications are significant for Taco Bell, which says it saw global system-wide sales of $14 billion in 2022. This technology promises to address labor shortages and rising wages while potentially boosting sales through automated upselling.\nYet Timofeeva cautions against overlooking the human element. \u201cTo minimize the complaints, there needs to be sufficient staff available to deal with any concerns and ensure continued customer satisfaction,\u201d she said.\nTaco Bell\u2019s late entry into AI-powered ordering may prove advantageous. The company can learn from the struggles of early adopters like McDonald\u2019s, which recently scrapped its decade-long experiment with IBM\u2019s automated system. Timofeeva suggests this timing could allow Taco Bell to sidestep common pitfalls and capitalize on recent technological advances. Moreover, she said, the company can benefit from evolving standards in AI ethics and risk management, potentially avoiding the ethical quandaries and technical hiccups that have plagued earlier attempts in the industry.\nSuccess in this AI implementation could set a new standard for the fast-food industry, where drive-thrus account for 70% of sales at quick-service restaurants, according to QSR Magazine. Yet challenges remain, including privacy concerns and the need to accommodate customers who prefer human interaction.\n\nFor all PYMNTS AI coverage, subscribe to the daily\u00a0AI\u00a0Newsletter.\n\nThe post Taco Bell Goes All-in on AI Drive-Thrus as McDonald\u2019s Steps Back appeared first on PYMNTS.com.", "date_published": "2024-08-07T14:33:24-04:00", "date_modified": "2024-08-07T14:33:24-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Taco-Bell-AI-drive-thrus.jpeg", "tags": [ "AI", "artificial intelligence", "chatbots", "drive-thru", "Google cloud", "McDonald's", "News", "PYMNTS News", "QSRs", "quick service restaurants", "Taco Bell", "Technology", "Voice AI", "Voice Ordering", "voice technology", "Yum! Brands", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2022918", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/ai-firms-seek-big-tech-rescues-as-enthusiasm-wanes/", "title": "AI Firms Seek Big Tech Rescues as Enthusiasm Wanes", "content_html": "Character.AI\u00a0and\u00a0Google.\u00a0Adept AI\u00a0and\u00a0Amazon.\u00a0Microsoft\u00a0and\u00a0Inflection.
\nWhat do these companies have in common? As The Wall Street Journal (WSJ)\u00a0reported\u00a0Tuesday (Aug. 6), they\u2019re all part of a new trend in the artificial intelligence (AI) field: struggling startups being rescued by Big Tech companies in a new type of deal that tech sector observers say are essentially acquisitions.
\nOther similar deals are on their way, investors tell the WSJ, as the generative AI bubble appears ready to peak, and startups learn they don\u2019t have the cash to develop AI large language models.
\n\u201cThere were a lot of companies that raised on a big vision, but not tangible examples and actual detail,\u201d said Shaun Johnson, a founding partner at the AI-focused venture outfit AIX Ventures.
\nMeanwhile, Big Tech\u2019s own AI efforts seem to have drawn\u00a0some skepticism\u00a0on Wall Street, as Google, Amazon and Microsoft all saw their share prices fall after releasing quarterly earnings last week.
\nThe WSJ report comes days after Character.AI\u2019s co-founders, Noam Shazeer and Daniel De Freitas, announced they were\u00a0joining Google\u00a0as part of a larger arrangement that lets the tech giant license the startup\u2019s AI technology.
\nThe deal reportedly involves a buyout of existing investors\u2019 shares at a valuation of $2.5 billion, a sharp increase from its previous valuation of $1 billion, though short of the\u00a0$5 billion valuation\u00a0discussed in investor talks last year.
\nThe Amazon/Adept AI deal happened in June, with the tech giant hiring\u00a0executives and workers\u00a0from the smaller firm and \u2014 sources told the WSJ \u2014 paying $300 million to license Adept\u2019s tech.
\nSources also say that Adept had raised $400 million, though the cost of developing its technology surpassed what its founders had projected. The WSJ \u2014 again, citing sources familiar with the matter \u2014 says that the company\u2019s founders had also tried to forge deals with Microsoft and Salesforce.
\nMicrosoft, meanwhile, hired\u00a0virtually the entire staff\u00a0of AI developer Inflection in March to bolster its consumer AI division, paying $650 million for its technology.
\nLast month, the U.K.\u2019s Competition and Markets Authority\u00a0launched an investigation\u00a0into this deal to determine whether it qualifies as a merger. Microsoft has said it was cooperating with the investigation and was confident that its arrangement \u201cpromotes competition.\u201d
\nFor all PYMNTS AI coverage, subscribe to the daily\u00a0AI\u00a0Newsletter.
\nThe post AI Firms Seek Big Tech Rescues as Enthusiasm Wanes appeared first on PYMNTS.com.
\n", "content_text": "Character.AI\u00a0and\u00a0Google.\u00a0Adept AI\u00a0and\u00a0Amazon.\u00a0Microsoft\u00a0and\u00a0Inflection.\nWhat do these companies have in common? As The Wall Street Journal (WSJ)\u00a0reported\u00a0Tuesday (Aug. 6), they\u2019re all part of a new trend in the artificial intelligence (AI) field: struggling startups being rescued by Big Tech companies in a new type of deal that tech sector observers say are essentially acquisitions.\nOther similar deals are on their way, investors tell the WSJ, as the generative AI bubble appears ready to peak, and startups learn they don\u2019t have the cash to develop AI large language models.\n\u201cThere were a lot of companies that raised on a big vision, but not tangible examples and actual detail,\u201d said Shaun Johnson, a founding partner at the AI-focused venture outfit AIX Ventures.\nMeanwhile, Big Tech\u2019s own AI efforts seem to have drawn\u00a0some skepticism\u00a0on Wall Street, as Google, Amazon and Microsoft all saw their share prices fall after releasing quarterly earnings last week.\nThe WSJ report comes days after Character.AI\u2019s co-founders, Noam Shazeer and Daniel De Freitas, announced they were\u00a0joining Google\u00a0as part of a larger arrangement that lets the tech giant license the startup\u2019s AI technology.\nThe deal reportedly involves a buyout of existing investors\u2019 shares at a valuation of $2.5 billion, a sharp increase from its previous valuation of $1 billion, though short of the\u00a0$5 billion valuation\u00a0discussed in investor talks last year.\nThe Amazon/Adept AI deal happened in June, with the tech giant hiring\u00a0executives and workers\u00a0from the smaller firm and \u2014 sources told the WSJ \u2014 paying $300 million to license Adept\u2019s tech.\nSources also say that Adept had raised $400 million, though the cost of developing its technology surpassed what its founders had projected. The WSJ \u2014 again, citing sources familiar with the matter \u2014 says that the company\u2019s founders had also tried to forge deals with Microsoft and Salesforce.\nMicrosoft, meanwhile, hired\u00a0virtually the entire staff\u00a0of AI developer Inflection in March to bolster its consumer AI division, paying $650 million for its technology.\nLast month, the U.K.\u2019s Competition and Markets Authority\u00a0launched an investigation\u00a0into this deal to determine whether it qualifies as a merger. Microsoft has said it was cooperating with the investigation and was confident that its arrangement \u201cpromotes competition.\u201d\n\nFor all PYMNTS AI coverage, subscribe to the daily\u00a0AI\u00a0Newsletter.\n\nThe post AI Firms Seek Big Tech Rescues as Enthusiasm Wanes appeared first on PYMNTS.com.", "date_published": "2024-08-06T09:06:14-04:00", "date_modified": "2024-08-06T09:06:14-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/06/AI-investments-artificial-intelligence.jpg", "tags": [ "Adept AI", "AI", "Amazon", "artificial intelligence", "Big Tech", "Google", "Inflection", "Investments", "Microsoft", "News", "PYMNTS News", "startups", "Technology", "Wall Street", "What's Hot", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2022880", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/openai-co-founder-john-schulman-joins-anthropic/", "title": "OpenAI Co-Founder John Schulman Joins Anthropic", "content_html": "One of OpenAI’s co-founders is departing the company to join artificial intelligence (AI) competitor Anthropic.
\nJohn Schulman announced his exit on X Monday (Aug. 5) evening, months after OpenAI dissolved its safety-focused superalignment team, and hours before another co-founder \u2013 company president Greg Brockman \u2013 said he was going on sabbatical for the remainder of the year.
\n\u201cThis choice stems from my desire to deepen my focus on AI alignment, and to start a new chapter of my career where I can return to hands-on technical work,\u201d Schulman wrote.
\n\u201cI’ve decided to pursue this goal at Anthropic, where I believe I can gain new perspectives and do research alongside people deeply engaged with the topics I’m most interested in.\u201d
\nHe added that his decision was not because OpenAI didn’t support the topic, saying that, on the contrary, its leaders \u201chave been very committed to investing in this area.\u201d
\nThe leaders of the superalignment team, Jan Leike and Ilya Sutskever, both left this year. Leike is now with Anthropic, while Sutskever, also an OpenAI co-founder, launched a new company, Safe Superintelligence Inc.
\nWhile Sutskever has expressed confidence in OpenAI CEO Sam Altman’s AI safety priorities, Leike said he felt his team was at odds with the rest of the company.
\n\u201cBuilding smarter-than-human machines is an inherently dangerous endeavor,\u201d he wrote in May.
\n\u201cOpenAI is shouldering an enormous responsibility on behalf of all of humanity.\u201d
\nBrockman, meanwhile, announced on X Monday he was taking a sabbatical for the rest of 2024.
\n\u201cFirst time to relax since co-founding OpenAI 9 years ago,\u201d he wrote. \u201cThe mission is far from complete; we still have a safe AGI to build.\u201d
\nAGI refers to \u201cartificial general intelligence,\u201d an as-yet-unrealized version of AI that can think and reason at the level of human beings.
\nOpenAI executives have said \u2013 at varying times \u2013 that the technology is within five to 15 years of becoming a reality.
\nAs PYMNTS wrote recently, the reports of these efforts have sparked discussion in the business community of the possibility of AI-powered commerce that could reshape the rules of global trade, assuming the technology lives up to the hype.
\n\u201cOpenAI\u2019s pursuit of human-level reasoning isn\u2019t just a technological marvel; it\u2019s a narrative of pushing boundaries and sparking new possibilities in every sector,\u201d Ghazenfer Mansoor, founder and CEO of Technology Rivers, told PYMNTS. \u201cIn business, AI can dramatically change how supply chains are managed, forecast market trends with great accuracy, and make customer experiences very personal on a big scale.\u201d
\nThe post OpenAI Co-Founder John Schulman Joins Anthropic appeared first on PYMNTS.com.
\n", "content_text": "One of OpenAI’s co-founders is departing the company to join artificial intelligence (AI) competitor Anthropic.\nJohn Schulman announced his exit on X Monday (Aug. 5) evening, months after OpenAI dissolved its safety-focused superalignment team, and hours before another co-founder \u2013 company president Greg Brockman \u2013 said he was going on sabbatical for the remainder of the year.\n\u201cThis choice stems from my desire to deepen my focus on AI alignment, and to start a new chapter of my career where I can return to hands-on technical work,\u201d Schulman wrote.\n\u201cI’ve decided to pursue this goal at Anthropic, where I believe I can gain new perspectives and do research alongside people deeply engaged with the topics I’m most interested in.\u201d\nHe added that his decision was not because OpenAI didn’t support the topic, saying that, on the contrary, its leaders \u201chave been very committed to investing in this area.\u201d\nThe leaders of the superalignment team, Jan Leike and Ilya Sutskever, both left this year. Leike is now with Anthropic, while Sutskever, also an OpenAI co-founder, launched a new company, Safe Superintelligence Inc.\nWhile Sutskever has expressed confidence in OpenAI CEO Sam Altman’s AI safety priorities, Leike said he felt his team was at odds with the rest of the company.\n\u201cBuilding smarter-than-human machines is an inherently dangerous endeavor,\u201d he wrote in May.\n\u201cOpenAI is shouldering an enormous responsibility on behalf of all of humanity.\u201d\nBrockman, meanwhile, announced on X Monday he was taking a sabbatical for the rest of 2024.\n\u201cFirst time to relax since co-founding OpenAI 9 years ago,\u201d he wrote. \u201cThe mission is far from complete; we still have a safe AGI to build.\u201d\nAGI refers to \u201cartificial general intelligence,\u201d an as-yet-unrealized version of AI that can think and reason at the level of human beings.\nOpenAI executives have said \u2013 at varying times \u2013 that the technology is within five to 15 years of becoming a reality.\nAs PYMNTS wrote recently, the reports of these efforts have sparked discussion in the business community of the possibility of AI-powered commerce that could reshape the rules of global trade, assuming the technology lives up to the hype.\n\u201cOpenAI\u2019s pursuit of human-level reasoning isn\u2019t just a technological marvel; it\u2019s a narrative of pushing boundaries and sparking new possibilities in every sector,\u201d Ghazenfer Mansoor, founder and CEO of Technology Rivers, told PYMNTS. \u201cIn business, AI can dramatically change how supply chains are managed, forecast market trends with great accuracy, and make customer experiences very personal on a big scale.\u201d\nThe post OpenAI Co-Founder John Schulman Joins Anthropic appeared first on PYMNTS.com.", "date_published": "2024-08-06T06:44:26-04:00", "date_modified": "2024-08-06T06:44:26-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/Anthropic-scraping.jpg", "tags": [ "AGI", "AI", "AI safety", "Anthropic", "Artificial General Intelligence", "artificial intelligence", "John Schulman", "News", "OpenAI", "PYMNTS News", "superalignment", "What's Hot", "artificial intelligence" ] }, { "id": "https://www.pymnts.com/?p=2022756", "url": "https://www.pymnts.com/artificial-intelligence-2/2024/rich-data-co-to-accelerate-expansion-of-ai-decisioning-platform/", "title": "Rich Data Co to Accelerate Expansion of AI Decisioning Platform", "content_html": "Australian company Rich Data Co (RDC) has secured an additional AU$9 million (about $5.9 million) in funding to accelerate the expansion of its artificial intelligence (AI) decisioning platform for business and commercial lenders in North America.
\nThis new funding from Acorn Capital follows the initial close of AU$28 million in November 2023, bringing RDC\u2019s total Series B funding to AU$37 million, the company said in a press release emailed to PYMNTS.
\n\u201cThis capital injection ensures we have the runway needed to significantly grow our North American operations,\u201d Ada Guan, CEO and co-founder of RDC, said in the release. \u201cOur recent partnership with nCino and M&T Bank highlights our commitment to expanding our footprint and delivering a cutting-edge AI decisioning platform that enhances risk management, lending strategies and regulatory compliance for financial institutions.\u201d
\nRDC\u2019s AI-powered platform helps banks make lending decisions efficiently and safely, deliver more meaningful customer interactions, improve credit outcomes and increase lending, according to the release.
\nThe firm has been expanding its team and operations in North America over the past two years and it signed its first U.S. customer, M&T Bank, in May, per the release.
\nAcorn has demonstrated a strong product-market fit, a sustainable competitive advantage and a highly scalable model, Andrew Burt, investment director at Acorn Capital, said in the release.
\n\u201cWe look forward to working with Ada and the RDC team to support their continued success in commercializing RDC\u2019s proprietary technology in Australia and internationally, with a particular focus on rapid expansion in the U.S. market,\u201d Burt said.
\nWhen RDC announced that it signed M&T Bank, it said the bank \u2014 which is the sixth largest commercial bank in North America \u2014 will use the AI platform to gain more comprehensive insights into cash flow health, credit risk and lending opportunities.
\nRDC also said its collaboration with nCino, which is a cloud banking firm and RDC\u2019s reseller partner, facilitated the deal, as that company\u2019s Continuous Credit Monitoring solution leverages the RDC platform.
\nNCino announced its value-added reseller agreement with RDC in February 2023, saying the AI decisioning platform would enhance the lending process for its customers and create value and efficiencies.
\nFor all PYMNTS AI coverage, subscribe to the daily AI\u00a0Newsletter.
\nThe post Rich Data Co to Accelerate Expansion of AI Decisioning Platform appeared first on PYMNTS.com.
\n", "content_text": "Australian company Rich Data Co (RDC) has secured an additional AU$9 million (about $5.9 million) in funding to accelerate the expansion of its artificial intelligence (AI) decisioning platform for business and commercial lenders in North America.\nThis new funding from Acorn Capital follows the initial close of AU$28 million in November 2023, bringing RDC\u2019s total Series B funding to AU$37 million, the company said in a press release emailed to PYMNTS.\n\u201cThis capital injection ensures we have the runway needed to significantly grow our North American operations,\u201d Ada Guan, CEO and co-founder of RDC, said in the release. \u201cOur recent partnership with nCino and M&T Bank highlights our commitment to expanding our footprint and delivering a cutting-edge AI decisioning platform that enhances risk management, lending strategies and regulatory compliance for financial institutions.\u201d\nRDC\u2019s AI-powered platform helps banks make lending decisions efficiently and safely, deliver more meaningful customer interactions, improve credit outcomes and increase lending, according to the release.\nThe firm has been expanding its team and operations in North America over the past two years and it signed its first U.S. customer, M&T Bank, in May, per the release.\nAcorn has demonstrated a strong product-market fit, a sustainable competitive advantage and a highly scalable model, Andrew Burt, investment director at Acorn Capital, said in the release.\n\u201cWe look forward to working with Ada and the RDC team to support their continued success in commercializing RDC\u2019s proprietary technology in Australia and internationally, with a particular focus on rapid expansion in the U.S. market,\u201d Burt said.\nWhen RDC announced that it signed M&T Bank, it said the bank \u2014 which is the sixth largest commercial bank in North America \u2014 will use the AI platform to gain more comprehensive insights into cash flow health, credit risk and lending opportunities.\nRDC also said its collaboration with nCino, which is a cloud banking firm and RDC\u2019s reseller partner, facilitated the deal, as that company\u2019s Continuous Credit Monitoring solution leverages the RDC platform.\nNCino announced its value-added reseller agreement with RDC in February 2023, saying the AI decisioning platform would enhance the lending process for its customers and create value and efficiencies.\nFor all PYMNTS AI coverage, subscribe to the daily AI\u00a0Newsletter.\nThe post Rich Data Co to Accelerate Expansion of AI Decisioning Platform appeared first on PYMNTS.com.", "date_published": "2024-08-05T21:50:23-04:00", "date_modified": "2024-08-05T21:50:23-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/f05cc0fdcc9e387e4f3570c17158c503?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/08/Rich-Data-Co-AI-loan-decisioning.jpg", "tags": [ "Acorn Capital", "Ada Guan", "AI", "Andrew Burt", "artificial intelligence", "banking", "credit risk", "loan decisioning", "M&T Bank", "nCino", "News", "PYMNTS News", "RDC", "Rich Data Co", "risk management", "What's Hot", "artificial intelligence" ] } ] }