Tag: ai

  • Payment giants have high hopes for agentic AI

    Payment giants have high hopes for agentic AI

    Agentic AI represents a shift from “AI as a tool” to “AI as an active agent” or partner. Unlike passive generative AI, which relies on step-by-step instructions, agentic AI is given a goal and determines the necessary actions to achieve that goal with limited supervision. Agentic AI systems can learn from past tasks and adapt their behavior to improve future outcomes.

    Given these capabilities—and the intense hype attached to anything with “AI” next to it—it is no surprise that some of the biggest names in financial services are racing to incorporate agentic AI into their product suites. Financial firms believe that adopting agentic AI can help them automate complex, multi-step workflows, which in turn is expected to boost operational efficiency, lower costs, and enable real-time risk management. Unlike passive AI, these autonomous agents can analyze data, make decisions, and execute tasks like fraud detection, algorithmic trading, and personalized customer service with minimal human intervention.

    Mastercard is going all in on agentic AI. In the second quarter of this year, it plans to launch the Mastercard Agent Suite, a comprehensive platform enabling businesses to deploy AI agents that autonomously handle tasks, personalize shopping, and execute secure transactions.

    In a news release, Mastercard provides two distinct use cases. In the first, it says that a bank could recommend the right product (like a travel card or a fee-saving account) to a consumer and then explain why it’s a good fit. “The bank can test offer scenarios, trigger personalized campaigns, and track performance, improving outcomes and driving portfolio growth,” the card giant says. In addition, Mastercard says that merchants can use its Agent Suite to configure rules for inventory, margins, promotions, and brand voice behind an agent “that provides conversational guidance at key moments in the shopping journey across channels.”

    Mastercard’s ultimate goal is to build foundational infrastructure, standards, and tools for agentic commerce. Its key partners in this endeavor include Stripe and Ant International, two of the biggest fintech firms in the world, as well as Google.

    However, Sabrina Tharani, senior vice president of global fintech programs at Mastercard, told Axios that the company expects agentic commerce to be shaped by ecosystems, not single platforms. “We believe that no single company is going to define the agentic economy,” Tharani said.

    We agree with that assessment. To that end, in late 2025, PayPal launched its own agentic commerce services. These will initially include an agentic payment solution, as well as a catalog and order management offering that helps merchants connect product data, inventory, and fulfillment with AI-driven discovery and checkout experiences. The new services directly connect PayPal merchants “to millions of consumers who are now using agent platforms for their day-to-day shopping needs,” Michelle Gill, GM of Small Business and Financial Services at PayPal, said in a news release.

    An Omnisend survey of 1,200 respondents conducted last year found that nearly 60% of Americans use generative AI tools for online shopping. 65% of those using GenAI when shopping online prefer ChatGPT, the survey found.

    We reckon agentic AI will go the furthest performing tasks for financial services providers that are redundant and easily automated. These include real-time fraud detection, algorithmic trading, rapid document review, and some aspects of personalized financial planning.

    But when it comes to e-commerce, agentic AI could struggle to provide value to consumers. AI often fails to understand the emotional, subjective, and experiential aspects of shopping. A case in point is Amazon’s Rufus, which adds very little to the shopping experience and sometimes even hinders it. It often provides generic, basic information already found in product descriptions rather than providing expert, nuanced advice.

    Perhaps that is why Omnisend included as one of its top three recommendations to e-commerce firms using generative AI to “keep a visible human touch.”

  • Why the Taiwan Stock Exchange had an incredible year in 2025

    Why the Taiwan Stock Exchange had an incredible year in 2025

    Geopolitical tumult and economic uncertainty across the world failed in 2025 to shake investor confidence in equity markets, with Taiwan being one of the best examples of this phenomenon. The Taiwan Stock Exchange (TAIEX) set six records in 2025 and could soon overtake Canada’s stock market (TSX) to become the world’s No. 6 stock market by capitalization.  

    Taiwan Stock Exchange data showed that six key indicators reached all-time highs last year. These included the year-end benchmark index, average daily turnover, total market capitalization of listed firms, combined revenue of listed companies, funds raised through IPOs, and securities transaction tax revenue.

    Some 2025 highlights: In the first 11 months of last year, total revenue generated by all listed companies hit a historic high of NT$42.89 trillion. The TAIEX closed the final trading session of last year at 28,963.6 points, while average daily turnover reached a record NT$416 billion (US$13.17 billion). Further, 45 companies applied to be listed in 2025, the highest number since 2008, while IPO fundraising reached a record NT$85 billion.

    By the end of 2025, total market capitalization of listed companies reached NT$94.36 trillion, placing Taiwan eighth globally by market value. Meanwhile, the rally has extended into early 2026. When market cap rose to NT$99.6 trillion earlier this month, the TAIEX overtook France’s Paris Bourse to become the No. 7 market globally.

    A key factor driving the TAIEX’s exceptional performance in 2025 was the global AI boom. This fueled massive demand for Taiwanese semiconductors, especially from tech giants like Nvidia, Broadcom, OpenAI, Google, Meta, and Micron.

    Taiwan Semiconductor Manufacturing Co. (TSMC), the world’s largest contract chipmaker, has played a central role in the TAIEX rally. Its stock price reached several all-time highs in 2025 and did so again on Jan. 16. TSMC is the top supplier of advanced chips (like 2 nm nodes) for AI data centers.

    With the TAIEX showing no sign of slowing down, we wonder, how long can this rally go on? Surely, what goes up must come down—eventually.

    To be sure, like the broader Taiwanese economy, the TAIEX is overly dependent on TSMC. The chipmaking giant represents a significant portion—ranging from 33% to 40%—of the index’s total market value. For many years, there have been concerns about the lack of diversification in the Taiwan stock market and potential vulnerability to AI market shifts or geopolitical events.  

    Taiwanese lawmakers have noted that the imbalance in the stock market reflects broader weaknesses in non-tech segments of Taiwan’s economy. “The market structure has lost its balance,” lawmaker Lin Te-fu in early January. “Many investors who do not hold TSMC cannot share in the benefits created by the TAIEX’s rise.” Lin further noted that 1,263 out of the 1,947 companies (64.87 percent) listed on the local main board and the OTC market still moved below their 240-day moving average, indicating a subpar performance.

    Given TSMC’s and the broader Taiwan tech sector’s strengths, the TAEIX is likely to remain strong in the short to medium term. However, the risk of an AI market correction at some point is real, and that would have significant implications for Taiwan’s stock exchange.

    The Bank of England, the IMF, and figures like Ray Dalio have warned that valuations for AI companies are reaching unsustainable levels, potentially creating a bubble. At the same time, many analysts question whether AI companies can generate enough revenue to justify the massive, multi-trillion-dollar investments in related infrastructure, such as data centers.

    A bursting of the AI bubble could lead to a global recession and wipe out $20 trillion in U.S. household wealth and $15 trillion for foreign investors.

    Even if the risk is mild to moderate, Taiwan should still brace for potential stock market shocks from an AI bubble bursting.