89% of issuers plan to adopt or expand at least one AI fraud capability, making fraud one of the broadest areas of planned AI deployment across card issuers.

Half of issuers name fraud detection and scoring as the single most important AI capability to add in the next year, more than three times the share choosing any other AI priority.

63% plan to use real-time fraud detection, putting AI directly into transaction decisioning as issuers modernize their card platforms.

For card issuers, artificial intelligence is moving closer to the transaction itself.

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Eighty-nine percent of issuers plan to adopt or expand at least one AI fraud capability, according to the PYMNTS Intelligence report “Investing Forward, Building the Edge,” done with Visa DPS. Half identify fraud detection and scoring as the single most important AI capability to add over the next year, while 63% plan real-time fraud detection specifically.

Fraud decisions happen continuously, against live transactions, and often have to be made quickly enough to approve a legitimate purchase without creating unnecessary friction for the cardholder.

Issuers are putting AI into that environment at the same time that they are shortening their technology investment cycles. The average time until an issuer’s next platform upgrade has fallen from 7.8 years to 2.4 years, with 7 in 10 issuers now planning an upgrade within three years.

There’s a connection between the infrastructure being replaced and the AI capabilities issuers expect that infrastructure to support, according to the data.

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