Visa, the payment giant, just dropped its Intelligent Commerce program, giving AI agents the power to make purchases on behalf of consumers. While it’s the future of payments, it’s also raising eyebrows about letting robots handle your money.

The Brave New World of Autonomous Shopping

Visa’s announcement is one that most other payment giants will probably scramble to follow. It makes sense. With AI’s rapid growth, any business not getting on board risks being left in the dust.

The Intelligent Commerce program takes Visa into new territory. It’s not just about giving an AI agent your payment details, it’s about handing over decision-making power. Your AI will now analyze your data and set spending limits to make purchases for you. It’s not just tech; it’s a whole new way of spending.

“You’re not just handing over a payment method; you’re letting AI take charge of your financial life,” said Tae Oh, founder of CreditCoin.

This marks the dawn of what’s being called “programmable spending identities.” And yes, it’s as wild as it sounds.

Securing the AI Shopping Spree with Tokenization

So, how does Visa keep things safe? With a nifty little thing called tokenization. When you link your Visa card to an AI agent, your card details are never actually shared. Instead, Visa uses secure passkeys to create a digital token that the AI will use for transactions.

This means your actual card number stays locked up tight, while the AI does its thing. Plus, Visa’s also thrown in extra security layers, just to make sure everything stays smooth, but there’s a catch: trusting AI isn’t easy for everyone.

AI Spending: A Blessing or a Trap?

The Intelligent Commerce system could revolutionize how we manage money. Never forget a bill, never exceed your budget, what’s not to love?

AI could even become a lifesaver for busy parents or people who struggle with impulse buying. Alice Shikova from SPACE ID believes AI might be the answer for those who want to stop spending money they don’t have.

But here’s where things get interesting: brands may no longer market to us directly. Instead, they’d be pitching to the algorithms that learn our preferences. If your AI knows you like eco-friendly products, it might just bypass popular, less green options, changing the game for marketers.

The Trust Factor

Here’s the kicker: not everyone’s going to be cool with AI making purchases for them. “We’re wired to want control over our cash,” Oh pointed out. For some, even autopay feels too risky. Letting an AI decide whether you really need that $200 blender? Well, that could stir up some second-guessing.

And don’t even get started on how much personal info these AI agents are collecting. If Visa and other companies are storing all your spending habits, that’s a huge target for hackers. Plus, who really owns that data? Is it you? The AI provider? Visa? These are questions that still need answers.

Who’s to Blame If AI Crosses the Line?

Despite the fancy security, there are huge privacy concerns here. If an AI misuses your personal data or is hacked, who’s at fault? If your financial data is in the hands of just a few huge players, it’s a hacker’s dream.

Oh points out that when a few companies control your spending info, it becomes a tempting target for bad actors. Visa processed over 234 billion transactions in 2024, which means all that data is worth a lot to someone. But who’s keeping it safe?

The Dark Side of AI Commerce

Visa’s new program could make shopping easier, but is it just paving the way for more surveillance capitalism? With AI keeping tabs on your every purchase, there’s potential for less diversity in the marketplace. AI agents might prioritize popular brands, leaving smaller players and niche products in the dust.

Then there’s the digital divide. Not everyone has the tech-savvy to deal with this kind of system. Older generations, for instance, might find themselves left behind if AI shopping becomes the norm. Plus, if they don’t trust the tech, they might end up as easy targets for exploitation.

A Call for Caution

The true test of AI in payments is how we manage trust, privacy, and fairness. If this tech isn’t deployed with user needs in mind, we could end up with more problems than solutions.

As Scott Shi from Kite AI points out, the impact of this tech on society could be profound, but only if we keep humanity in the loop. Otherwise, we risk letting profit take precedence over what’s best for the users.

In the end, Visa’s big leap into AI-powered payments is just the beginning. How well this technology is handled could shape the future of commerce, and possibly leave many consumers in the dust if the wrong choices are made.

Elon Musk Launches XChat Messaging App, But Crypto Experts Are Skeptical | HODL FM
Elon Musk, the guy who’s been busy rebranding Twitter to X, just…
hodl-post-imageHODL FM: The Wildest Ride in the Crypto MarketJordan V.
hodl-post-image

Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.