How Fintech Startups are Building with AI

What does the first generation of AI applications and tools look like for fintech companies? Do existing startups with product market fit wait until clearly defined products are built in order to avoid distractions and slowed momentum? Do large fintech’s, banks keep their in house AI teams under wraps, or do they showcase product improvements to their customer bases? 

What is clear is how there is a fever at the early stage startups level to incorporate AI into their core product architecture. Another interesting group of companies are the non-fintech, pre-product, and pre-product market fit startups who may pivot to become fintech companies. 

I’ll dig into the top trending fintech startups displaying strong leanings to AI in future articles. In this articles let us explore how AI is likely to be deployed in startups over 2023 and into 2024.

Framing the opportunities with Jeremiah’s AI stack, let us first dig into the data layer. Simplistically let’s break down data into public and private. Consensus is that we need to expose more data from private sources in order to give us more raw materials to build the next generation protocols. Proof of fact and distributed ledger tech (DLT) have been used with blockchain startups for multiple years now. How does AI make this better, faster, and more useful to startups? Points to consider:

• Blockchain has real synergies with AI.
• Decentralized trust layer for machine learning – startups are working to allow the unit cost of ML compute to settle into its fair equilibrium
• Payments – AI enhanced blockchains and speeding up the payment process. Startups are improving this space.

Fintech and AI are in the early stages. As founding teams create access and products to organize and analyze data, we will step into the next phase of AI product development in fintech.

• Stew Langille