IBM has introduced a new “Lightweight Engine” for its WatsonX.ai service, primarily targeting enterprise users.
However, this tool could also provide a secure, scalable solution for small to mid-sized businesses, particularly in emerging sectors like fintech.
The generative AI market has been a significant driver of revenue growth in the tech sector during the first half of 2024. A decade ago, the rapid expansion of this sector, fueled by the popularity of large language models such as OpenAI’s ChatGPT and Anthropic’s Claude, was hard to foresee.
Generative AI in financial services
Before ChatGPT, many AI and finance experts believed that large language models like GPT-3 were not reliable or accurate enough for high-stakes applications in finance or other fields requiring precision.
Even with advancements following ChatGPT’s 2023 release, AI models trained on public data for general use remain unpredictable. To move beyond being mere chatbots with some coding abilities, these models need specialization.
For instance, JPMorgan Chase recently acquired enterprise access to OpenAI’s ChatGPT for its 60,000 employees. This includes customization with internal data and specific guardrails. This move highlights the financial services industry’s growing adoption of generative AI.
The United Arab Emirates is set to launch its digital dirham, a central bank digital currency (CBDC), by the fourth quarter of 2025.
Ripple has secured a strategic partnership with Chipper Cash to enhance cross-border payments across Africa, utilizing Ripple’s blockchain and XRP for fast, cost-effective transactions.
Custodia Bank, a notable player in the crypto space, has partnered with Vantage Bank to introduce a groundbreaking stablecoin, marking a first for the U.S. banking sector.
World Network, formerly known as Worldcoin, is reportedly in advanced discussions with Visa to launch a new stablecoin wallet that would seamlessly integrate crypto-native features into Visa’s vast global customer base.