Ally Financial will launch a generative AI innovation challenge for startups on July 9, focusing on developing tech solutions for its customers and staff.
“We see generative AI giving us more capabilities that solve for unmet business needs and applicable to many functions within the company,” Sathish Muthukrishnan, chief information, data and digital officer, told Bank Automation News.
Ally is looking to attract startups that have raised money — from seed funding to series D — and aims to work with three to five companies to mutual collaboration, Muthukrishnan said.
AI startups must meet these requirements to participate:
- Have at least two full-time employees;
- Have publicly available products or prototypes; and
- Demonstrate interest from companies for their services.
“The selected startups will have the opportunity to connect with Ally mentors and potential investors for help improving their products,” he said. “Companies may also get the opportunity to test their products at Ally.”
Venture capital firms including Ardent, Core Innovation Capital, Mendoza Ventures and Noemis Ventures will join the challenge to be exposed to new startups, according to Ally’s website.
Responsible AI
Ally is looking for startups that are developing gen AI responsibly, Muthukrishnan said.
“Given the rapid pace of AI development and its potential to expand the digital divide, we’re expanding our focus on where and how AI can be used for positive change,” Muthukrishnan said. “We recognize that responsible AI isn’t just technical challenges. Our corporate culture encourages us to consider these as policy and societal questions with real-world consequences in our communities.”
The $182 billion bank has deployed AI in its anti-money-laundering and fraud units, identifying suspicious activity and evaluating trends in customer records to support casework, he said, adding that Ally is exploring the use of gen AI for research, searching for articles, scanning and summarization of documents.
Innovation challenges at other FIs
TD Bank also hosts innovation competitions to find AI development ideas that could improve its offerings, working with the University of Guelph in Ontario for one, according to the bank’s website.
A similar program, the Independent Community Bankers of America’s ThinkTECH Accelerator program, will be held on July 24 at the Graduate School of Banking at Colorado in Westminster, Colo., to foster relationships between banks and fintechs, according to a June 8 release from the association.
This is the first time Ally is hosting an external innovation challenge after hosting multiple internal challenges, Muthukrishnan said, adding that the challenge will run from July 9 to Sept. 11.
Early-bird registration is now available for the inaugural Bank Automation Summit Europe 2024 in Frankfurt, Germany, on Oct. 7-8! Discover the latest advancements in AI and automation in banking. Register here and apply to speak here.
