Complex Systems with Patrick McKenzie (patio11) The past, present, and future of AI, with Stripe
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Apr 3, 2025 This discussion dives into how Stripe utilizes AI to streamline payment processing, managing over $1.4 trillion yearly. Topics include advanced fraud detection techniques that recover lost revenue and how AI enables new businesses to thrive. The conversation anticipates the future of personalized online shopping and the rising influence of AI agents in commerce. Insights into transaction routing and challenges in balancing fraud prevention with user experiences make for an engaging exploration of AI's role in financial systems.
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AI's Role at Stripe
- Stripe leverages AI across its platform, from fraud detection to personalized checkout experiences.
- AI is crucial for managing complex money flows and enabling new businesses to compete effectively.
Payment Processing Complexity
- Payment processing involves multiple parties making real-time decisions.
- This creates tension between denying potentially fraudulent payments and allowing legitimate transactions.
Fraud Tolerance by Business Type
- SaaS providers can tolerate more fraud due to lower marginal costs.
- Physical goods sellers face higher fraud costs, impacting their risk tolerance.