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September 13, 2021 • Issue 21:09:01

AI's evolution from predictive to prescriptive

is no intellectual property associated with simply hiring
more loan officers and making more calls," he said. "That
effort is table stakes. What is significantly more valuable in
the mid and long term is building proprietary risk models
using loan performance data."
Andy Renshaw, vice president, strategy and solutions at
Feedzai, a cloud-based financial risk management plat-
form, observed that AI adoption is rising. "Interest in pre-
dictive AI has been increasing with proven success stories
from early adopters, increased availability of data and low
cost of cloud computing," he said. "The adoption of predic-
tive analytics was accelerated by the COVID-19 pandemic
as organizations, including financial institutions, had to
rethink business processes and digital transformation ob-
jectives."

Felix Berkhahn, chief data scientist at AML software pro-
vider HAWK:AI, attributes growing AI adoption to con-
By Dale S. Laszig sumer acceptance, which has changed in recent years,
particularly in the financial field. "We see new customers
wenty years ago, artificial intelligence (AI) was who are more willing to use AI, but we also see it on the
considered a breakthrough technology; today, AI regulatory side," he said. "Here in Berlin, several big finan-
is an integral part of connected commerce. Next-
T generation AI models are more autonomous than cial institutions are working together to build institutional
monitoring solutions. You can really see, from all angles,
early models and frequently make decisions independently we have changed."
of humans. Their ability to parse anomalous behavior from
massive data sets makes them invaluable to numerous Scalable foundations
endeavors from fraud prevention to financial services.
Like a weather report or sales forecast, predictive analytics
The Green Sheet interviewed technology leaders who lever- is more intuition than exact science; it's a way to anticipate
age advanced AI technologies to protect the commerce val- outcomes based on current and historical data, which ma-
ue chain and improve the customer experience. In this arti-
cle, they detail AI's remarkable evolution and offer insights
into the increasingly sophisticated interplay between pre-
dictive AI machines and their human creators.
Contributed articles inside by:
Innovation, opportunity
Sam Bobley, chief executive officer at Ocrolus, a fintech au- Jeff Fortney .............................................................................................28
tomation platform, works with numerous clients employ- Roger McNamara ..................................................................................30
ing data scientists and has seen AI drive innovation and
opportunity. "The reasons make sense: you don't build a Elie Katz ....................................................................................................32
differentiated lending business through brute force; there TOC on page 3

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