Safaricom is increasingly integrating Artificial Intelligence (AI) into its M-Pesa platform, particularly to strengthen fraud detection capabilities and enhance overall system monitoring and prediction. This adoption of AI is part of a broader move to future-proof the mobile money service, with a shift towards an "AI-native" core system.
"Now we are going into a space where we have a lot of new technologies and so we have to change the core of the system to be AI native in nature. This allows us to leverage AI capabilities to address things like fraud and even from a monitoring perspective, we will be able to start predicting the trends of the traffic for the next few days" says Felix K. Rop, Head of Financial Services Technology at Safaricom.
AI for Advanced Fraud Detection
At the forefront of M-Pesa's AI deployment is its critical role in fraud detection. The system utilizes AI to:
- •Identify unusual patterns in transactions that are not typical for a customer. For instance, if a customer performs a transaction they don't usually do, AI helps detect this anomaly.
- •Prevent fraudulent transactions by leveraging these identified unusual patterns.
- •While AI models for fraud detection require time to learn and enhance through machine learning, Safaricom has made significant progress in detecting potential fraudulent transactions and protecting customers. The goal for the next generation of M-Pesa is to further enhance these models to achieve even more real-time fraud prevention.
Transitioning to an AI-Native Architecture
The current architecture of M-Pesa was not originally "AI native". However, Safaricom is now undergoing a fundamental transformation of its core system to become 100% cloud-native and "AI-native". This architectural shift will enable the platform to fully leverage AI capabilities.
AI for System Monitoring and Prediction
Beyond fraud detection, AI is also being incorporated for operational insights:
- •AI will be used for system monitoring, allowing for better oversight of the platform's performance.
- •It will enable the prediction of traffic trends for future days, aiding in proactive capacity planning and resource allocation. This capability is crucial for ensuring M-Pesa maintains its high availability.
Upskilling the Workforce in AI
Recognizing the strategic importance of AI, Safaricom is investing in its human capital:
- •Sometime last year, a mandatory AI course was introduced for all staff. This initiative is aimed at upskilling the team and preparing them for the next level of technological evolution.
- •Safaricom provides materials and works closely with partners like AWS, Google, and Huawei to offer courses that teams can take to upskill themselves, ensuring they are ready for the evolving, fully cloud-native systems.
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