1、2023THE INTERSECTION OF AI&FINANCIAL SERVICESHow AI is supercharging embedded financeIn our evolving digital landscape,artificial intelligence(AI)is driving innovation across multiple sectors.It has now intersected with embedded finance,which weaves financial services into nonfinancial platforms,enh

2、ancing user experiences and streamlining processes.AI has the potential to lift embedded finance to its fullest,offering tools to combat fraud,curate personalized experiences,and manage risks.In this Viewpoint,we shed light on the interplay between AI and embedded finance,sharing current application

3、s,future trajectories,and the manifold challenges.AUTHORSArjun Vir SinghMichael EidenDr.Mohammad NikkarMichael BatemanIyad HalabiMuhammad DanialVIEWPOINTTHE INTERSECTION OF AI&FINANCIAL SERVICES-Square,a financial services platform,leverages machine learning(ML)for underwriting and extending loans t

4、o small businesses bypassed by conventional banks.-E-commerce platform Shopify embeds the AI prowess of payment service processor Stripe,offering individualized solutions,which amplifies the sales potential for its merchants.-Retail behemoth Amazon relies on AI to dissect data and curate personalize

5、d loan offers anchored in sales history.These examples only scratch the surface.Figure 2 reveals the spread of AIs influence across embedded finance.AIs potential to expedite and amplify embedded finance cannot be understated.This synergy is not just beneficial;in many respects,it is indispensable.T

6、he essence of embedded finance is its comprehensive integration with nonfinancial platforms,ensuring that users can access and utilize financial services without disrupting their primary engagements.AI elevates this feature;its advanced personalization capabilities discern user needs before they bec