Mastercard has launched a new generative artificial intelligence model called Decision Intelligence Pro, which can help banks detect fraudulent transactions on its network in real-time. The model uses a proprietary recurrent neural network(RNN) to understand relationships between merchants and predict where fraudulent transactions are taking place. Instead of textual inputs, the algorithm uses the history of a cardholder's merchant visit as the prompt to determine whether the business involved in a transaction is a place the customer would likely go. Mastercard claims that the technology can help financial institutions improve their fraud detection rates by up to 300% in some cases.

The true potential of Mastercard’s technology, according to Bhalla, is in the ability to identify fraudulent patterns and trends to predict future types of fraud that are not currently known within the payments ecosystem.

Mastercard jumps into generative AI