Archive 21.08.2024

A multidisciplinary research team based across China and Brazil has used a dog-like robot and AI to create a new way to find fire ant nests. Published in the journal Pest Management Science, the study highlights how a "CyberDog" robot integrated with an AI model can automate the identification and control of Red Imported Fire Ants (RIFA), a globally destructive pest.

An insect species that evolved 130 million years ago is the inspiration for a new research study to improve navigation systems in drones, robots, and orbiting satellites.

By processing vast amounts of data in real time, AI-driven robots can make intelligent decisions, optimize operations, and continuously improve over time. This advancement is redefining the way warehouses operate, offering enhanced productivity and reliability.

Transforming Credit Card Management: The Impact of AI and ML

The role of AI and ML in transforming credit risk management in banking

Credit-card fraud has been a prime challenge for customers and financial organizations in this digital age. Globally, more than $28 billion was lost last year from credit card fraud. It is going to rise in the future, and hence there is a need for robust risk management mechanisms.

Previously, risk in credit card portfolios was managed through a variety of manually developed procedures for fraud detection and prevention. However, traditional methods have become ineffective against today’s intelligent hacking methods.

Fortunately, the advent of AI and ML has transformed credit card risk management processes. These technologies process huge volumes of data and can effectively detect anomalies, mitigating threats. This technological shift shall create a better transaction security experience for customers through reduced false positives and smoother and safer transactions.

The article will discuss how AI and ML can solve traditional credit card risk management problems. We are also going to look into the different techniques used, the benefits of using AI and ML for credit card risk management, and some case studies with real-world examples.

An Overview of Credit Card Risk Management

It is the process of identifying, assessing, and mitigating the risks associated with credit card transactions. Therefore, this whole process can be regarded as paramount to protecting consumers and even financial institutions against fraudulent activities.

Traditionally, credit card risk management depended on rule-based systems and manual reviews. In the rule-based system, as the name implies, predefined criteria are used in the identification of risky transactions. For example, transactions exceeding a certain amount or originating from unusual locations raise red flags. While providing some form of security, these measures were typically inadequate to handle increasing volumes and sophistication in credit-card transactions.

This can often result in the generation of a lot of false positives by rule-based systems misinterpreting a legal transaction as fraud. This might anger customers and put additional workload on customer service. Further, fraudsters are continuously inventing new techniques that make it pretty hard for the static rule-based system to detect new threats.

The Role of AI and ML in Credit Card Risk Management

1. Transforming Risk Management

AI and ML have transformed credit card risk management with much more accurate, efficient, and dynamic approaches toward fraud detection and mitigation. These technologies use large datasets and complex algorithms that enable identifying trends and outliers in real time. This approach opens up avenues for proactive threat detection and response.

2. Real-Time Fraud Detection

AI and ML systems are very good at real-time fraud detection, for they continuously monitor transactions and user behavior. While traditional, rule-based approaches could not detect these newer styles of distributed fraud schemes, AI and ML adapt rapidly to new patterns of fraud once they appear. This will ensure that financial institutions are always one step ahead of fraudsters in the identification of suspicious activities before they can cause great damage.

3. Pattern Recognition and Anomaly Detection

The major strengths of AI and ML in risk management are their ability to identify complex patterns and detect anomalies indicative of fraudulent behavior. Such systems create baseline behaviors through the analysis of historical transaction data, user profiles, and contextual information. Deviations from these norms trigger alerts for further investigation. This level of precision helps in distinguishing genuine transactions from fraudulent ones, thus reducing the incidence of false positives.

4. Continuous Learning and Improvement

These AI and ML models learn from new data continuously, which can only improve their fraud detection capabilities over time. As more transactions are processed and different fraud scenarios unfold, these models will fine-tune their algorithms to be more accurate and efficient. This is an ongoing spiral of improvement, ensuring the risk management system will change as the landscape of fraud evolves.

5. Automation and Efficiency

AI and ML can substantially reduce the need for reviews subject to risk management by automating a number of aspects involved in this particular area. Automated systems can process volumes of data at lengths and speeds inconceivable to any human analyst, allowing for effective fraud detection in a timely manner. This not only improves operational efficiency but also frees human resources to deal with more complex and risky cases that require nuanced decision-making.

6. Integration with Existing Systems

AI and ML technologies can be combined with pre-existing frameworks of risk management, thereby delivering greater potential and effectiveness without requiring an overhaul in their entirety. Equally, this will give a financial institution a chance to utilize the current running infrastructure and receive all the benefits coming from advanced AI and ML-driven insights. The result is going to be an ultimately more solid, responsive system of risk management that is able to adapt itself to polished threats and challenges.

Key Challenges and Considerations To Overcome

While AI and ML have huge potential in credit card transaction risk management, there are also a number of pitfalls and issues that arise with their implementation. Bringing solutions to these problems will be key to maximizing the effectiveness of the technologies and their ethical working.

1. Data Privacy

Since AI and ML systems are data-driven, the door is also wide open to a number of potential data privacy and security issues. However, the financial institutions should be in a position to protect sensitive customer information and establish mechanisms of data collection, storage, and processing that consider applicable privacy regulations under GDPR and CCPA; this argues further that appropriate encryption methods, access controls for customers, and good anonymization techniques will be implemented accordingly.

2. Regulatory Compliance

One of the major challenges institutions face in implementing AI and ML is managing the complex landscape of financial regulations relevant to the use and processing of data. This requires stringent controls and the associated transparency expected by regulators. Hence, institutions will have to ensure compliance with these regulations, which may involve regular audits, documentation, and reporting of AI and ML models to regulatory authorities.

3. Implementation Barriers

AI and ML technologies can be resource-intensive to adopt. Some of the common challenges faced while implementing AI and ML include:

• High Costs: Setting up AI and ML infrastructures, software, and personnel with exceptionally high skills can be really resource-intensive.
• Technical Complexity: The development and maintenance of AI and ML systems require special knowledge and expertise that are often absent in some organizations.
• Integration problems: The overall incorporation of AI and ML into underpinning systems and workflows has proved to be quite problematic. Careful thought in planning and execution will be needed if the technology is to work seamlessly.

Real-time Case Studies and Real-World Examples

Real-world examples will attest to how AI and ML find practical applications in credit card risk management. Case studies will illustrate how financial institutions have tapped into such technologies to frustrate fraud, enhance security, and improve customer satisfaction.

Many of the leading financial institutions have included AI and ML within the risk management framework with quite excellent results:

• JPMorgan Chase: AI-driven systems for tracking and analyzing millions of transactions every day have been put in place. Its AI models detect fraudulent activities with high accuracy, reducing false positives drastically and increasing the security of overall transactions.
• HSBC: ML algorithms at HSBC enhance their capability for fraud detection. Analysis of the historical transaction data will help in discovering the spend pattern; therefore, these companies can ensure prevention and prediction accordingly. This proactive policy has caused a notable decrease in fraud-related losses.

USM Business systems is also a pioneer in AI-powered mobile app development fraud detection. We help you keep your and yours esteemed customers data privacy and financial safety through developing high-quality advanced credit risks management apps.

Conclusion

AI/ML-powered mobile app development for fraud detection is the best option in this digital age. These technologies provide better accuracy, real-time processing, cost efficiency, and an improved customer experience.

At the same time, all the challenges and considerations involved do not overshadow the bright future awaiting AI and ML in risk management. Only those financial institutions that embrace these technologies will adapt to the ever-changing landscape of credit card fraud and ensure safe and satisfied customers.

 

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Researchers have used artificial intelligence tools to accelerate the understanding of the risk of specific cardiac arrhythmias when various parts of the heart are exposed to different thresholds of radiation as part of a treatment plan for lung cancer.

A new adaptive 3D printing system can identify the positions of randomly distributed organisms and safely move them to specific locations for assembly.

On a research cruise around Hawaii in 2018, Yuening Zhang SM '19, Ph.D. '24 saw how difficult it was to keep a tight ship. The careful coordination required to map underwater terrain could sometimes lead to a stressful environment for team members, who might have different understandings of which tasks must be completed in spontaneously changing conditions.

It’s no exaggeration that nearly every company is exploring generative AI. 90% of organizations report starting their genAI journey, meaning they’re prioritizing AI programs, scoping use cases, and/or experimenting with their first models. Despite this excitement and investment, however, few businesses have anything to show for their AI efforts, with just 13% report having successfully moved genAI models into production. 

This inertia is justifiably causing many organizations to question their approach, particularly as budgets are crunched. Overcoming these genAI challenges in an efficient, results-driven manner demands a flexible infrastructure that can handle the demands of the entire AI lifecycle. 

Challenges Moving Generative AI into Production 

The challenges limiting AI impact are diverse, but can be broadly broken down into four categories: 

• Technical skills: Organizations lack the tactical execution skills and knowledge to bring Gen AI applications to production, including the skills needed to build the data infrastructure to feed models, the IT skills to efficiently deploy models, and the skills needed to monitor models over time.
• Culture: Organizations have failed to adopt the mindset, processes, and tools necessary to align stakeholders and deliver real-world value, often resulting in a lack of definitive use cases or unclear goals. 
• Confidence: Organizations need a way to safely build, operate, and govern their AI solutions, and have confidence in the results. Otherwise they risk deploying high-risk models to production, or never escaping the proof-of-concept phase of maturity. 
• Infrastructure: Organizations need a way to smooth the process of standing up their AI stack from procurement to production without creating disjointed and inefficient workflows, taking on too much technical debt, or overspending. 

Each of these issues can stymie AI projects and waste valuable resources. But with the right genAI stack and enterprise AI platform, companies can confidently build, operate, and govern generative AI models.  

Building GenAI Infrastructure with an Enterprise AI Platform

Successfully delivering generative AI models demands infrastructure with the critical capabilities needed to manage the entire AI lifecycle. 

• Build: Building models is all about data; aggregating, transforming, and analyzing it. An enterprise AI platform should allow teams to create AI-ready datasets (ideally from dirty data for true simplicity), augment as necessary, and uncover meaningful insights so models are high-performing. 
• Operate: Operating models means putting models into production, integrating AI use cases into business processes, and gathering results. The best enterprise AI platforms allow  
• Govern:

An enterprise AI platform solves a number of workflow and cost inefficiencies by unifying these capabilities into one solution. Teams have fewer tools to learn, there are fewer security concerns, and it’s easier to manage costs. 

Harnessing Google Cloud and the DataRobot AI Platform for GenAI Success

Google Cloud provides a powerful foundation for AI with their cloud infrastructure, data processing tools, and industry-specific models:

• Google Cloud provides simplicity, scale, and intelligence to help companies build the foundation for their AI stack.
• BigQuery helps organizations easily take advantage of their existing data and uncover new insights. 
• Data Fusion, and Pub/Sub enable teams to to easily bring in their data and make it ready for AI, maximizing the value of their data.
• Vertex AI provides the core framework for building models and Google Model Garden provides 150+ models for any industry-specific use case.

These tools are a valuable starting point for building and scaling an AI program that produces real results. DataRobot supercharges this foundation by giving teams an end-to-end enterprise AI platform that unifies all data sources and all business apps, while also providing the essential capabilities needed to build, operate, and govern the entire AI landscape

• Build: BigQuery data – and data from other sources – can be brought into DataRobot and used to create RAG workflows that, when combined with models from Google Model Garden, can create complete genAI blueprints for any use case. These can be staged in the DataRobot LLM Playground and different combinations can be tested against one another, ensuring that teams launch the highest performing AI solutions possible. DataRobot also provides templates and AI accelerators that help companies connect to any data source and fasttrack their AI initiatives,
• Operate: DataRobot Console can be used to monitor any AI app, whether it’s an AI powered app within Looker, Appsheet, or in a completely custom app. Teams can centralize and monitor critical KPIs for each of their predictive and generative models in production, making it easy to ensure that every deployment is performing as intended and remains accurate over time.
• Govern: DataRobot provides the observability and governance to ensure the entire organization has trust in their AI process, and in model results. Teams can create robust compliance documentation, control user permissions and project sharing, and ensure that their models are completely tested and wrapped in robust risk mitigation tools before they’re deployed. The result is complete governance of every model, even as regulations change.  

With over a decade of enterprise AI experience, DataRobot is the orchestration layer that transforms the foundation laid by Google Cloud into a complete AI pipeline. Teams can accelerate the deployment of AI apps into Looker, Data Studio, and AppSheet, or enable teams to confidently create customized genAI applications. 

Common GenAI Use Cases Across Industries

DataRobot also enables companies to combine generative AI with predictive AI for truly customized AI applications. For example, a team could build a dashboard using predAI, then summarize those results with genAI for streamlined reporting. Elite AI teams are already seeing results from these powerful capabilities across industries. 

A chart showing real-world examples of genAI applications for banking, healthcare, retail, insurance, and manufacturing.

Google gives businesses the building blocks for harnessing the data they already have, then DataRobot gives teams the tools to overcome common genAI challenges to deliver actual AI solutions to their customers. Whether starting from scratch or an AI accelerator, the 13% of organizations already seeing value from genAI are proof that the right enterprise AI platform can make a significant impact on the business. 

Starting the GenAI Journey

90% of companies are on their genAI journey, and regardless of where they might be in the process of realizing value from AI, they all are experiencing similar hurdles. When an organization is struggling with skills gaps, a lack of clear goals and processes, low confidence in their genAI models, or costly, sprawling infrastructure, Google Cloud and DataRobot give companies a clear path to predictive and generative AI success. 

If your company is already a Google Cloud customer, you can start using DataRobot through the Google Cloud Marketplace. Schedule a customized demo to see how quickly you can begin building genAI applications that succeed. 

The post Solving GenAI Challenges with Google Cloud and DataRobot appeared first on DataRobot.

VFDs are the backbone of modern and legacy industrial systems, managing tasks from powering fans and compressors to enabling intricate robotic operations. For more complex industrial operations, the need for precise coordination between drives escalates.

Over the past few decades, electronics engineers have developed increasingly flexible, versatile and highly performing devices for a wide range of real-world applications. Some of their efforts have been aimed at creating smart and sensing textiles, which could be used to fabricate stretchy robotic systems, medical devices and wearable technologies.

A collaborative approach to automation offers solutions where older methods have fallen short. Manufacturers who have struggled to achieve desired results from conventional robotics should consider how cobots can help them strike an ideal balance.

RobotWritersAI.com is playing hooky.

We’ll be back Sept. 2, 2024 with fresh news and analysis on the latest in AI-generated writing.

The post Gone Fishin’ appeared first on Robot Writers AI.

In recent years, roboticists worldwide have designed various robotic grippers that can pick up and manipulate different types of objects. The grippers that are most effective in tackling real-world manual tasks, particularly complex object manipulation tasks, are often those inspired by human hands.

A zinc-air microbattery could enable the deployment of cell-sized, autonomous robots for drug delivery within in the human body, as well as other applications such as locating leaks in gas pipelines.

Researchers have made groundbreaking advancements in the field of soft robotics by developing film-balloon (FiBa) soft robots. These innovative robots, designed by a team led by Dr. Terry Ching and corresponding author Professor Michinao Hashimoto, introduce a novel fabrication approach that enables lightweight, untethered operation with advanced biomimetic locomotion capabilities.