Generative AI (GenAI) has quickly risen up as one of the most debated and hyped topics in tech. What impact will it have on financial services?
Generative AI is an emerging frontier of AI models which are trained on large data sets of content media to create new text, audio, images, videos, and more.
GenAI is quickly becoming comparable or, argued by some, better than the average human creation, along with also being faster and cheaper. It could replace human work in certain functions while enhancing human creative work in others. A key central topic is the cost of content creation dropping down to nearly zero.
The most straightforward application of Generative AI in fintech is with customer service. Fintech has often largely focused on the transition to digital-first and only financial services, this has also though meant the transition to frustrating and not working chatbots. Generative AI could represent a strong leap in quality.
A few other possible use cases:
Synthetic data generation for different use cases such as risk factor modelling
Adversarial simulation for fraud detection and trading prediction
Investment research: scaling up investment research for long-tail of public companies.
Legal drafting
Discover 210+ Generative AI startups, their main investors and key trends in the segment by clicking the button below. 👇
We are working on our yearly fintech review. It has been full of changes from a still-strong start of the year to a funding crunch, down rounds, bankruptcies & much more.
🇸🇬 Crypto trading company Amber Group raised a $300M Series C, as a reaction to FTX collapse and the need for liquidity.
🇬🇧Aztec Protocol, a privacy-focused zero-knowledge scaling solution for Ethereum, raised a $100M Series B led by Andreessen Horowitz (a16z).
🇺🇸 CyberCube, a cyber risk analytics provider for the insurance industry, raised an additional $50M in growth financing from investment funds managed by Morgan Stanley.
Other notable fintech deals from around the globe:
🇮🇹Fiscozen raised an $8M Series A led by Keen Venture Partners to help millions of small businesses and freelancers eliminate tax bureaucracy in Italy.
Speaking of GenAI, as GenAI becomes more advanced, tech companies will need to protect against potential adaptive malware. Did you know that 2022 has been a record year for UK Cyber security startups?
UK Cyber security startups are now worth $30B, a 7.6x increase since 2017, growing faster than the top Cyber ecosystems worldwide including US, China, the EU and Israel.
UK Cyber security startups have raised $607M so far in 2022, more than the previous record set in 2021.
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