Frontline Defense: Outsmarting Fraudsters and Shaping the Future of Fraud Prevention

The rise of AI and ML in fraud prevention can lead to a new era of digital trust and compliance

Author: Jochen Werne / 26.12.2023

In an era marked by rapidly advancing technology and increasing global interconnectivity, the fight against online fraud has become a paramount concern for financial institutions, businesses, and regulators worldwide. Part of my professional work revolves around understanding and mitigating the risks associated with financial fraud. The Experian Forrester Fraud Research Report 2023, which was recently released, sheds light on the escalating threat of online fraud and the evolving strategies to counter it, particularly through the use of Machine Learning (ML) and Artificial Intelligence (AI).

The report’s findings are stark: a 74% increase in fraud losses in Germany, reflecting nearly the global increase rate. This surge is not just a statistic; it’s a clear indication of the sophisticated and pervasive nature of modern financial fraud. Companies across various sectors are feeling the impact, with financial services bearing the brunt. This trend is deeply concerning not only for the economic health of individual businesses but also for the broader stability and security of the financial system.

From a geopolitical perspective, the rise in online fraud is a multifaceted challenge. It’s a threat that transcends borders, affecting relations among nations, and has become a significant factor in international policy and security discussions. Countries, including Germany, are increasingly recognising the need for cooperative international efforts to combat this scourge. The geopolitical implications are profound, as fraud undermines economic stability and erodes public trust.

Turning to the German banking sector, the issue of compliance and reputation risk under the framework of Minimum Requirements for Risk Management (MaRisk) is particularly pertinent. Banks are finding themselves at the forefront of the battle against online fraud, necessitating robust risk management strategies that align with regulatory requirements. Under MaRisk, the mandate is clear: implement effective, comprehensive controls to detect, prevent, and manage fraudulent activities. The reputational risk for banks and their board members is immense; a single lapse can lead to significant financial losses, legal consequences, and lasting damage to customer trust.

In this challenging landscape, AI/ML-based fraud prevention methods stand out as beacons of hope. These technologies offer the promise of enhancing detection capabilities, reducing false positives, and adapting swiftly to new fraudulent tactics. However, their implementation must be undertaken with a clear understanding of the ethical implications and potential biases inherent in AI systems. As we embrace these technologies, we must also commit to transparency, accountability, and continuous improvement to ensure they serve the interests of all stakeholders fairly and effectively.

Despite the challenges, I believe there is a path forward that balances the need for security with the imperative for innovation and growth. The key lies in embracing a multi-faceted approach to fraud prevention that leverages the best of technology, human expertise, and regulatory compliance. ML, with its ability to learn and adapt to new patterns, offers a powerful tool in this fight. However, its effectiveness hinges on the quality of data, the integrity of algorithms, and the wisdom of the humans who guide its evolution.

The German companies surveyed in the study are acutely aware of the challenges and opportunities presented by AI/ML in fraud prevention. The overwhelming majority recognise the efficacy of ML-based approaches and anticipate their increasing dominance in the field. Yet, they also acknowledge the hurdles, including the costs associated with deploying advanced fraud prevention solutions, the need for continuous adaptation, and the importance of addressing the ethical considerations of AI use.

In my experience, one of the most critical factors for success in this endeavour is collaboration. Tackling online fraud is a collective effort that requires the involvement of businesses, regulators, technology providers, and consumers. By working together, sharing knowledge, and fostering a culture of innovation and vigilance, we can stay ahead of fraudsters and protect the integrity of our financial systems.

Another vital aspect is education and awareness. Both consumers and employees must be informed about the risks of online fraud and the steps they can take to prevent it. Regular training, robust policies, and a culture of security are essential in creating a resilient defense against fraud.

Finally, we must recognize that the fight against fraud is an ongoing battle. As technology evolves, so too will the tactics of fraudsters. We must remain agile, constantly updating our strategies, investing in new technologies, and adapting to changing regulatory landscapes. This dynamic approach is not just about defense; it’s about building a stronger, more secure future for everyone.

The Experian Forrester Fraud Research Report 2023 is a call to action. It highlights the urgent need for enhanced strategies, stronger collaboration, and a steadfast commitment to ethical, innovative solutions in the fight against online fraud. As leaders in the financial services industry, we have a responsibility to take the helm, steering our organisations towards safer waters in this tumultuous sea of digital threats. By harnessing the power of AI/ML, prioritising ethical considerations, and fostering a culture of collaboration and continuous learning, we can not only mitigate the risks of online fraud but also pave the way for a more secure, prosperous, and trustworthy financial ecosystem.

#fraudprevention #dataliteracy #machinelearning

Charting Uncharted Waters: Europe’s Place in a World Remade

By Jochen Werne.

Duesseldorf, 5 November 2023

Introduction

From the eloquent words of Shakespeare in Henry V, where he once proclaimed, “all things are ready if our minds be so”^1 to the monumental shifts brought by Gutenberg’s printing press^2, history reminds us that change is both an inevitable and defining characteristic of human progress. As the world stands at the threshold of a new epoch marked by rapid technological shifts and pronounced geopolitical transformations, this profound sentiment compels us to reflect on the paramount importance of preparedness and perspective. The way societies respond to these shifts determines the direction of their trajectory. In our current age, Europe finds itself at the nexus of global transformations driven by technological advancements and geopolitical tectonics.

Technology: A Historical Reflection

Peering through the lens of history, one quickly realizes that technology has been both a beacon of hope and an augury of upheaval. Take the 15th century’s monumental invention of the printing press as a case in point^2. This groundbreaking innovation democratized access to information and catalysed a substantial uptick in literacy rates across Europe. As Eisenstein posits, the “Printing Revolution” catalyzed an era where knowledge was no longer the privilege of the few but a right of the many^2. Yet, its reverberations were not confined to just reading and writing. The press became the vessel through which Martin Luther disseminated his Ninety-Five Theses, triggering a religious revolution that reshaped the European continent.

However, the journey wasn’t without turbulence. This democratization of knowledge played a pivotal role in challenging the established order, culminating in events like the Reformation, which MacCulloch describes as Europe’s great house divided^3.

Niall Ferguson, in “The Square and the Tower”, beautifully illustrates the timeless tension and interplay between networks and hierarchies^4. Historically, technologies like the printing press have emerged as disruptors, challenging established orders and reshaping hierarchies. The press, for instance, allowed for the free flow of ideas, becoming an early network that democratized information. Yet, not everything it propagated was for the betterment of society. The infamous “Malleus Maleficarum”, an ostensibly scholarly treatise, fueled the flames of the European witch hunts, leading to persecution, paranoia, and a dark chapter in history^5.

From Past to Present: The Tech Geopolitical Nexus

Fast forward to the present, and we witness a world where technology continues to shape geopolitical realities. Maddison’s macro-economic study reveals that the global center of economic gravity has been steadily shifting towards the East, particularly since the dawn of the 21st century^6. Nowhere is this shift more apparent than in the realm of technology.

The US-China tech rivalry, explored by Fuller, highlights the strategic challenges posed by China’s technological ascent^7.

The race for supremacy in AI, quantum computing, 5G, and biotechnologies marks the modern-day power play. But this isn’t merely about technological one-upmanship; it signifies a larger canvas of geopolitics, economics, and even societal values.

Many analysts are drawing parallels to the Cold War, coining the term “Tech Cold War” or “Cold War II”. Unlike the 20th-century version, primarily characterized by nuclear deterrence between the USSR and the US, this new Cold War positions the US and China in an intense rivalry for technological, economic, and military dominance. In the midst of this rivalry, both nations are hyper-aware of the stakes.

Navigating the Waters of New Geopolitical Paradigms

More than a century ago, the naval strategist Alfred Thayer Mahan, in his seminal work on sea power, postulated that maritime dominance was crucial to national greatness.

Today the Indo-Pacific has become the focal point of 21st-century geopolitics. Here, China’s assertive ‘Two Ocean Strategy’ is emblematic of its ambitions to exert influence both in the Pacific and the Indian Ocean. This expansive maritime vision is not just about sea lanes and trade; it’s a reflection of China’s aspirations to be a global power.

Simultaneously, the Taiwan question looms large in this maritime strategy. Its strategic location in the first island chain poses both an opportunity and a challenge for Beijing. Control over Taiwan would offer unencumbered access to the broader Pacific.

However, the rise of one power often brings countermeasures by others. The ‘AUKUS’ agreement between Australia, the United Kingdom, and the United States is a manifestation of this dynamic. While cloaked in the language of technological collaboration, especially in the realm of nuclear-powered submarines, the underlying intent of AUKUS is clear. It seeks to counterbalance China’s growing naval capabilities and assertiveness, particularly in the South China Sea.

Reflecting on Mahan’s sea power doctrine in this context provides a sobering perspective. Mahan believed that maritime dominance was the linchpin of global influence. Yet, he also understood the responsibilities and challenges that came with such power. In our contemporary setting, while nations pursue their maritime strategies, it is imperative they also embrace the principles of dialogue, cooperation, and conflict avoidance.

Taiwan epitomizes this interplay. As a beacon in semiconductor manufacturing, Taiwan’s geopolitical relevance can’t be overstated. Any instability could trigger economic consequences potentially dwarfing the aftermath of the Covid-19 pandemic^9.

Taiwan and Europe: Quietly Interwoven, Profoundly Connected.

In the intricate web of global technology supply chains, few names stand out as prominently as Taiwan Semiconductor Manufacturing Company (TSMC). Founded in 1987, TSMC has ascended the technological hierarchy to become the world’s leading semiconductor foundry, a testament to its unwavering commitment to innovation and excellence.

TSMC’s significance is multifaceted. For one, it’s the world’s largest dedicated independent semiconductor foundry^8. With clients ranging from major tech giants like Apple and Nvidia to burgeoning startups, TSMC’s production underpins a vast swathe of the digital products and solutions we rely on daily. However, TSMC’s role isn’t merely a commercial or technological one. It is geopolitical. With the escalating “Tech Cold War” between the U.S. and China, TSMC finds itself at an intriguing junction. The company’s strategic importance is underscored by global reliance on its cutting-edge chip manufacturing capabilities. This reliance has not only made TSMC a coveted partner but also a strategic asset in the larger scheme of global geopolitics. The U.S. push to ensure TSMC sets up manufacturing bases on its soil, and China’s keen interest in the semiconductor sector, highlights the foundry’s pivotal position.

Furthermore, TSMC embodies Taiwan’s broader significance in the tech world. As the geopolitical tussle intensifies, Taiwan – and by extension, TSMC – becomes a linchpin for global tech supply chains. A disturbance in TSMC’s operations, as speculated, could have cascading ramifications across industries, from consumer electronics to automotive and healthcare. Any significant disruption in this intricate supply chain would reverberate globally, with experts suggesting a potential 5% drop in global automotive production^9.

As chips become smaller, denser, and more powerful, the precision and capability of lithography machines must evolve in tandem.

Here’s where Europe and ASML, a Dutch gem, comes into play. The company is the sole producer of extreme ultraviolet (EUV) lithography machines^8, an advanced technology that allows for the creation of incredibly dense and efficient chips. With transistors now approaching atomic scales, EUV lithography is no less than a technological marvel, allowing chipmakers to etch circuits just a few nanometers wide.

However, the conversation around ASML isn’t merely about technological mastery. Given its unique position as the only producer of these EUV machines, ASML enjoys a quasi-monopolistic status in this niche yet profoundly impactful domain. In an era where technological supremacy is increasingly intertwined with geopolitical power, also ASML’s importance cannot be overstated. The machines they produce are not just expensive and sophisticated pieces of equipment; they are, in many ways, gatekeepers to the next generation of digital innovation.

Such a near-monopoly naturally draws attention. Nations and corporations are keenly aware of the strategic value inherent in controlling or accessing state-of-the-art chipmaking technology. With the ongoing technological cold war, where semiconductor supply chains have become part of the geopolitical chessboard, ASML finds itself in a spotlight it never sought but cannot avoid.

Europe’s Crucial Pivot

Europe’s position in this evolving tech landscape is unique. While traditionally viewing the Atlantic alliance as a cornerstone of its foreign policy, the rise of China necessitates a recalibrated approach^10. Europe’s interlinked trade with China, especially through critical chokepoints like the Malacca Strait, underscores the strategic dimension of this relationship^11.

In this whirlwind of technological and geopolitical flux, Europe is not an idle spectator. With a collective GDP nearing $22 trillion, it wields considerable influence. Europe’s role is multi-dimensional: an economic powerhouse, a voice of reason in tumultuous times, and often a mediator in global disputes.

The European Central Bank (ECB) embodies Europe’s proactive stance^12. Recognizing the flux, the ECB’s vision for 2023-2025 zeroes in on three pillars:

The ECB recognizes that the financial institutions it oversees must adapt to these transformative times. A crucial element of this adaptation is embracing digitalization, with a special emphasis on robust data-driven risk management.

  1. Strengthening Resilience: The intricate web of global economies translates to shared vulnerabilities. It’s imperative for Europe’s financial edifice to be robust, equipped to handle external shocks, and maintain systemic stability.
  2. Digitalisation & Institutional Strengthening: The burgeoning fintech sector necessitates a complete metamorphosis for legacy banks. This isn’t a mere cosmetic digital overhaul. Banks need to internalize and deploy intelligent digitalization. Central to this transformation is data analytics, supercharged by AI. Harnessing data, drawing meaningful insights, and predicting trends will determine who thrives in this new era.
  3. Climate Change Initiatives: Europe has consistently championed sustainability. The financial sector’s alignment with green, sustainable practices isn’t just altruistic; it’s also economic prudence, ensuring long-term viability and stability.

The above mentioned ECB focus is highlighted by Experian’s 2023 report on why AI-driven, regulatory-compliant analytics solutions are becoming imperative for European banks^13.

The AI Paradigm: Europe’s value-based Ethical Approach

Europe’s approach to AI regulation, championing the cause of ‘explainable AI’, shows its commitment to integrating technology with ethics. This dedication harks back to its legacy of literacy and the importance of accessibility, a theme explored by Graff^14. As Europe navigates the ‘Asian Century’^15, it does so with a clear vision: to leverage its historical experiences and chart a course that balances innovation with ethical considerations. The European AI Act encapsulates this approach. The Act’s core philosophy revolves around ensuring AI applications are safe and respect existing laws and values. This includes transparency obligations, strict criteria for ‘high risk’ AI applications, and a provision for setting up a European Artificial Intelligence Board.

One might wonder, why the emphasis on explainability? As AI systems permeate critical sectors, from healthcare to finance, their decisions can profoundly impact individuals. An ‘explainable AI’ ensures that these decisions are not just accurate but also comprehensible to the average person. This empowers individuals, fostering trust in AI systems.

The Act, however, isn’t just about explainability. It recognizes the diverse applications of AI and categorizes them based on risk. For ‘high-risk’ applications, stringent requirements, from transparency to accuracy and security, are mandated. This stratified approach ensures that while innovation isn’t stifled, critical areas receive the scrutiny they warrant.

Economic Powerhouses: A Comparative Analysis

Any discussion on global transformation would be incomplete without examining the economic engines driving these changes. China’s astounding growth, with a GDP of $17.7 trillion by 2022^16, and its decade-long average annual growth rate of 6.5%, contrasts with the US’s $25.3 trillion GDP and a more conservative 2.3% growth rate^17. The European Union, showcasing resilience and integration, clocks a collective GDP nearing $22 trillion^18, with trade figures underscoring its global economic clout^19.

Conclusion: Europe’s Way Forward

Our world is in a state of flux, reminiscent of those transformative moments in history. From the monumental shifts of the Printing Revolution^2 to the divisive yet transformative Reformation^3, Europe has witnessed and shaped global trajectories. As it stands at the crossroads of another transformation, it draws from its rich historical tapestry, aiming to strike a balance between embracing the future and preserving its core values.

The digital future beckons, but it’s not without its challenges. Whether it’s the complex web of tech geopolitics or the imperative of sustainable growth, Europe’s journey forward will need to be both adaptive and principled. At the heart of this journey lies the potent combination of data and ethics. And as Europe strides into the future, it carries with it a clear message: progress, when rooted in ethics and driven by knowledge, can usher in an era that’s not just technologically advanced but also just, balanced, and peaceful.

Footnotes:

^1 Shakespeare, William. “Henry V.” Act IV, Scene 3. ^2 Eisenstein, Elizabeth L. “The Printing Revolution in Early Modern Europe.” Cambridge University Press, 1983. ^3 MacCulloch, Diarmaid. “Reformation: Europe’s House Divided 1490-1700.” Penguin UK, 2004. ^4 Ferguson, Niall. “The Square and the Tower: Networks and Power, from the Freemasons to Facebook.” Penguin, 2018. ^5 Kramer, Heinrich and Sprenger, James. “Malleus Maleficarum.” Dover Publications, 1971. ^6 Maddison, Angus. “Contours of the World Economy 1-2030 AD: Essays in Macro-Economic History.” Oxford University Press, 2007. ^7 Fuller, Douglas B. “Cutting off our nose to spite our face: US policy toward Huawei and Taiwan in the shadow of the Chinese tech challenge.” International Security 45.3 (2021): 52-89. ^8 Chappell, Bill. “ASML: The Obscure Dutch Company That’s Enabling Big Advances In Tech.” NPR, 2019. ^9 “The Economic Impact of a Taiwan Crisis.” Nikkei Asia, 2023. ^10 Casarini, Nicola. “The Rise of China and the Future of the Atlantic Alliance.” Oxford University Press, 2020. ^11 Lanteigne, Marc. “China’s Maritime Security and the ‘Malacca Dilemma’.” Asian Security 4.2 (2008): 143-161. ^12 “European Central Bank Annual Report.” 2023. ^13 Experian PLC. “Annual Report and Financial Statements.” 2023. ^14 Graff, Harvey J. “The Legacies of Literacy: Continuities and Contradictions in Western Culture and Society.” Indiana University Press, 1987. ^15 Khanna, Parag. “The Future is Asian: Commerce, Conflict, and Culture in the 21st Century.” Simon and Schuster, 2019. ^16 “World Bank Data: China.” 2022. ^17 “World Bank Data: United States.” 2022. ^18 “World Bank Data: European Union.” 2022. ^19 “European Commission Trade Statistics.” 2022.

About the author

Jochen Werne is CEO of Experian DACH. Large-scale global data powerhouses like Experian with it’s more than 20.000 data and analytics experts and a market cap of nearly €30bn have a pivotal role to play in this evolving narrative. As a global vanguard in data analytics, Experian is uniquely poised to offer financial institutions the insights and tools essential for navigating the multifaceted challenges of our times. In a world inundated with data, discerning patterns, understanding trends, and anticipating potential pitfalls will be the linchpin of success.

Unpacking Transformation: A European perspective

By Jochen Werne

I had the distinct honor, alongside CCO Björn Hinrichs, to represent Experian DACH at the Gala event 2023. Our heartfelt gratitude goes to acatech for their warm invitation.

It’s clear that fostering a robust relationship between science and industry is paramount. The National Academy of Science and Engineering stands as a beacon, guiding and correcting, making technological innovation the cornerstone of transformation. This union of strong research, pioneering companies, and forward-thinking policies is the backbone of what acatech and countless others strive for. In this journey, while competition fuels our drive, it is cooperation that offers the platform for greatness.

In the infinite expanse of space, we are but astronauts on a tiny speck called Earth. Regardless of our political and geopolitical landscape, science and research must always be the bridge, the “Bridge over Troubled Water” that connects us and ensures progress, says Jan Wörner, President of acatech, wisely.

In reflecting on this, Germany’s Federal President Frank-Walter Steinmeier’s words resonate deeply: “I think we should base our perspective more on Max Frisch and trust ourselves as individuals and society alike to be able to shape the future. And that means developing perspectives, broadening our horizons and, yes, always daring to try something new. We need all this in the phase of upheaval we are in. Holding on to the past, ignoring change, refusing change, that is not an option – especially not in an open society like ours. But: We have to give change – that is the task of politics, business and science – a direction!”

Drawing from these profound insights and looking through the lens of our work at Experian DACH, the era we are entering can be aptly described as a new Age of Enlightenment, where data and therefore data literacy is paramount. As the Enlightenment thinker Voltaire astutely pointed out, “Judge a man by his questions rather than by his answers.” It’s a sentiment that is even more relevant today. Taking cues from Immanuel Kant’s wisdom, enlightenment is about emerging from our limitations. In the context of our time, achieving data literacy and harnessing data effectively signifies our evolution from technological naivety.

While AI stands as a monumental tool to decipher this data, its effectiveness lies in the quality of the data it is fed. It brings to the fore the urgent need for data literacy. An AI is only as good as its data. Thus, a distorted understanding could lead to distorted outputs. The onus is on us, leaders in data, to champion the responsible use of AI and advance the narrative on the symbiotic relationship between data and AI.

This new Enlightenment is our journey towards an era where society is mature and informed, utilizing the strength of data and AI for the betterment of all. Knowledge, in this context, isn’t just power but the foundation for positive societal transformation.

Concluding with my personal reflection, data isn’t merely a quantified entity; it’s a potent instrument to comprehend and address pressing challenges. Our collective aim should be to cultivate an understanding of data – its collection, utilization, and, importantly, its ethical application.

Our commitment at Experian DACH, backed by our ‘data for good’ principle, is to be at the forefront of this change, guiding, and contributing to this transformative journey.

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More about the acatec Gala #FV2023 including the keynotes by Frank-Walter Steinmeier, Marion Merklein, Jan Wörner and Thomas Weber can be found here

Efficient use of AI determines the competitiveness and thus the future of German companies

Artificial Intelligence: The German Economy on the Cusp of Transformation

By Jochen Werne


1st October 2023, Düsseldorf

The “Experian 2023 Business Insights” report, released in September 2023, provides a revealing insight into the priorities of the global business community in the coming year. Particularly of interest to us in Germany is the insight into the transformative influence of Artificial Intelligence (AI) on areas such as analytics, risk assessment, and customer experience in the EMEA/APAC region.

Our German decision-makers are well aware of the pivotal role of AI in innovations. An encouraging finding: 60 percent of businesses in our country have already taken active steps to integrate AI into their processes.

However, the report also shows that not all executives in Germany are fully convinced of the benefits of using AI. The efficiency of AI in companies will determine how Germany stands as an economic location in an increasingly digital age. The transformation of raw data into meaningful insights and analyses will become a crucial competitive advantage for us.

It’s heartening to see that many of our international counterparts already recognise the benefits of AI. For more than half of the global companies, the productivity gains from AI already outweigh the initial costs.

One thing is clear: Our data infrastructure and the amount of data available will play a key role in the successful implementation of AI. Here, we as German businesses have some hurdles to overcome, especially regarding the availability of relevant data for critical business decisions.

In conclusion, I want to stress that, even with all the technology and data, we must never forget our ethical responsibility. AI must be employed in a transparent and responsible manner. The fact that already 61 percent of businesses in the EMEA/APAC region have a comprehensive AI risk management programme in place is promising.

The future is clear: businesses that properly harness AI will lead the competition. They’ll be able to leverage process efficiency and automation to unlock new growth opportunities.

For those who wish to read the full “Experian 2023 Business Insights Report”, you can find it here.

https://experianacademy.com/Forrester-Research-Report-2023

Harnessing Data for Good

After my first week as CEO for Experian in the DACH region (Germany, Austria, and Switzerland), I find myself profoundly thankful for the warm welcome and the many highly inspiring encounters with some of the best data and technology professionals on our planet. Experian is not only a data insights industry titan, one that operates in 32 countries, employs over 20,000 outstanding personalities worldwide but would also rank with its more than USD 30 billion market capitalisation compared to Germany’s leading stock index as the 19th largest DAX company in Germany. Experian serves as a global leader millions of consumers and businesses, leveraging data to make a transformative difference in people’s lives.

Yet, with tremendous reach and influence comes immense responsibility.

Reflections

Just as the Age of Enlightenment in the 18th century reshaped society through the dissemination of knowledge, we find ourselves at the precipice of a new era, one marked by the power and potential of data. The 21st century, in my view, must herald a fresh Age of Enlightenment, one underpinned by data literacy.

The Age of Enlightenment, Literacy and the Dawn of Data Literacy

The Age of Enlightenment, a period dating from the late 17th to the late 18th century, marked a profound shift in the course of human history. This era, also known as the Age of Reason, encouraged critical thinking, decoupling minds from the shackles of superstition and unquestioned authority. The spotlight was placed firmly on rational thought, scientific inquiry, and individual rights – underpinnings of the modern world as we know it.

Several factors catalyzed this significant shift, not least of which was the advent and proliferation of printing technology. As philosopher Immanuel Kant noted, “Dare to know! Have the courage to use your own understanding,” a statement that encapsulates the Enlightenment’s spirit. This courage was largely fostered through increasing literacy rates.

The advent of the printing press revolutionized the dissemination of information. Books were no longer a luxury exclusive to the elite; knowledge became democratized. This sparked an increased demand for literacy. As more people learned to read, ideas were more freely exchanged, fueling a critical examination of existing societal structures.

For example, “The Encyclopédie,” a massive reference work edited by Denis Diderot and Jean le Rond d’Alembert, exemplified the spread of Enlightenment thinking. Its contributors, including leading intellectuals like Voltaire and Rousseau, aimed to collate all the world’s knowledge into a single work, accessible to the common man. This unprecedented venture into free access to knowledge set the stage for many of the democratic, scientific, and industrial revolutions that followed.

Fast forward to the present day, we see parallels in the advent of the internet, a digital revolution that democratizes information at a scale unimaginable to the Enlightenment thinkers. However, this superabundance of information has led to a paradoxical effect. As stated by Nobel Laureate Herbert A. Simon, “a wealth of information creates a poverty of attention.”

In an age characterised by short attention spans and reactionary behaviour, the challenge lies not in accessing information but in sifting through its vastness to discern truth from falsehood. A study conducted by Microsoft, 2015, found that the average human attention span has dropped to eight seconds, primarily due to the digitalised lifestyle.

Like the literacy of the Enlightenment Age, the 21st century calls for a new form of literacy: data literacy.

In a world where data is hailed as the new oil, our ability to critically interpret, analyse, and question data is of paramount importance. This skill set empowers individuals and corporations to make informed decisions, a process integral to our society.

In a report by The Data Literacy Project of which also Experian is a partner, only 21% of the global working population was confident in their data literacy skills. This gap highlights the pressing need for an educational shift towards fostering data literacy, much like the push for literacy during the Enlightenment era.

In conclusion, as we navigate the information deluge, a new Age of Enlightenment beckons, one centered around data literacy. With this new ‘Enlightenment,’ we can harness the true potential of information abundance, steering our societies towards more informed, rational, and democratic spaces. As the Enlightenment thinker Voltaire wisely said, “Judge a man by his questions rather than by his answers.” This insight seems more pertinent now than ever.

Such a renewed Age of Enlightenment also draws inspiration from one of the original Enlightenment’s most influential thinkers, Immanuel Kant. As he famously stated, “Enlightenment is man’s emergence from his self-imposed immaturity.” To transpose his wisdom to our context, data literacy and the effective application of data might be seen as emergence from a state of technological immaturity.

Furthermore, in our modern context, the Enlightenment’s emphasis on reason and logic has a fascinating analogue in the field of artificial intelligence (AI). AI, a critical tool in making sense of complex data, is designed to mimic human reasoning, albeit on a scale and at speeds we could never achieve unaided. As such, it holds a pivotal role in our future, helping us glean insights from the vast sea of data.

However, while AI’s potential is significant, it further underlines the importance of data literacy. The algorithms that power AI are only as good as the data that feeds them. Poor understanding of data and its nuances can lead to skewed AI outputs, with far-reaching implications.

Leaders in data need to focus on responsible use of AI by promoting data literacy and improving understanding of the interplay between data and AI.

New Enlightenment, then, is a journey towards a mature, informed society that harnesses the power of data and AI for good. In this era, knowledge isn’t just power; it’s the key to creating a world where data and technology act as catalysts for positive change.

In this new age, data is not merely a collection of numbers, facts, or figures; it is a powerful tool for understanding and addressing the most pressing societal issues.

However, just as literacy was not universal during the initial Enlightenment, data literacy is not yet a universal skill. As a society, we need to foster an understanding of data, how it’s collected, how it’s used, and most importantly, how it can be used ethically and responsibly.

Harnessing Data for Good – The Experian way

Experian, as a data powerhouse, has a crucial role to play in this journey. Experian has been a pioneer in harnessing data for good, from helping individuals gain access to credit, to assisting businesses flourish, to aiding governments in delivering crucial services.

For the DACH region specifically, the path to growth is intertwined with our mission to empower individuals and corporations with data and to protect from risks. In our regional market in the heart of Europe, we see significant potential to enhance consumer and corporate credit, improve business services, and support governmental programs.

Trust, innovation and reliability go hand in hand

To achieve this goal, we need to aim high and develop state-of-the-art products like AiDRIAN, which, by intelligently combining and using the latest AI technologies and data, are able to protect customers from fraud with more than 99.9% accuracy. Developing trustworthy solutions is of paramount importance. Trust comes from long-term reliability and independent audits. For AiDRIAN, for example, Fraunhofer IPA audited the heart of the solution, the Transaction Miner. The machine learning model compares several hundred customer characteristics and then assesses the risk of a transaction. Millions of data records are evaluated in a matter of seconds. Fraunhofer therefore came to the test result that the Miner’s predictive power is comprehensible even to experts and leads to better decisions.

Such results are only achievable by having an exemplary team.

The Experian DACH team, which I had the pleasure of meeting during my first week, is made up of dedicated, forward-thinking people who understand that work is not just about data, but about using data as a tool for progress and prosperity. A team that is eager to innovate, build trust, and act as responsible stewards of the data – every single day. As we delve deeper into a new era, we should aim to be instrumental in fostering a society that uses data ethically, responsibly, and for the greater good.

The Enlightenment brought knowledge to the masses, revolutionizing societies, and shaping the modern world. It is my belief, a new Age of Enlightenment will bring data literacy to all, empowering societies in ways we are just beginning to imagine.

I am excited and honoured to be a part of this transformative journey.

Jochen Werne - New Joiner CEO DACH Experian

Das Jahrzehnt der Transformation – Optimistische Perspektiven eines Umdenkens

17. Carinthische Dialoge – Schloss Bach – 14.-16. Juli 2023

Es ist mir eine besondere Ehre den Eröffnungsvortrag der 17. Carinthischen Dialogen geben zu dürfen. Unter dem Leitthema “Das Jahrzehnt der Transformation – Optimistische Perspektiven eines Umdenkens” wird der Beitrag, “Ein neues Zeitalter der Aufklärung” drei inspirierende Tage einläuten.

Bei dieser bemerkenswerten Veranstaltung teilen sich die Bühne angesehenen Persönlichkeiten aus verschiedenen Fachbereichen. So wird Horst von Buttlar, Chefredakteur der Zeitschrift “Wirtschaftswoche” und Autor des Buches “Das grüne Jahrzehnt”, Veränderungen ausgelöst durch Krisen thematisieren.

Nobelpreisträger Anton Zeilinger, emeritierter Professor der Universität Wien, widmet sich dem spannenden Thema des Zufalls.

Ich möchte mich herzlich bei den Organisatoren, insbesondere bei Generalsekretärin Johanna Franz und Maximilian Franz, für die Einladung und ihre unermüdliche Arbeit zur Realisierung dieser bedeutsamen Veranstaltung bedanken.

Weitere Informationen zur Veranstaltung, einschließlich mehr Details zu den unten stehenden Referenten und des Programms, sind auf der Website der Carinthischen Dialoge https://www.carinthische-dialoge.at/aktuelles-programm/ zu finden.

ReferentInnen u. ModeratorInnen

Horst von Buttlar, Wissenschaftsjournalist und Chefredakteur der Zeitschrift Capital. Buchautor „Das grüne Jahrzehnt“, Berlin

Klemens Fheodoroff, Dr., FA für Neurologie, OA Gailtal-Klnik, Obmann bei Carinthischer Sommer, 2.stv. Vorsitzender der Gesellschaft zur Förderung interdisziplinärer Dialoge, Carinthische Dialoge

Bernhard Gaul, Journalist im innerpolitischen Ressort der Tageszeitung Kurier

Arnold Mettnitzer, Prof. Dr., Theologe, Psychotherapeut in eigener Praxis, freier Mitarbeiter des ORF, Autor zahlreicher Bücher, Wien

Michael Musalek, Univ.-Prof. Dr., Ordinarius für Allgemeine Psychiatrie, SFU Med Wien, Vorstand des Intistuts für Sozialästhetik und Psychische Gesundheit, SFU Wien u. Berlin

Elisabeth Juliane Nöstlinger – Jochum, Wissenschaftsjournalistin, Producerin von WissensART, Vorsitzende der Jury zur Vergabe des Watzlawick-Ringes, Mitglied in zahlreichen wissenschaftlichen und kulturellen Gremien, Wien

Manfred Prisching, Univ.-Prof. i.R., Dr. jur., Mag.rer.soc.oec., Institut für Soziologie der Universität Graz

Philipp Weiss, österreichischer Schriftsteller, u.a. Buch: „Am Weltenrand sitzen die Menschen und lachen“, Wien

Jochen Werne, Autor, Keynotespeaker, international ausgezeichneter NGO-Gründer und Spezialist im Bereich Unternehmenentwicklung und -transformation, sowie internationaler Diplomatie.

Anton Zeilinger, em. o. Univ.-Prof. Dr., Universität Wien und Österreichische Akademie der Wissenschaften

The Decade of Transformation – Optimistic Perspectives of a Rethink

17th Carinthian Dialogues – Bach Castle – 14-16 July 2023

It is a special honour for me to give the opening lecture of the 17th Carinthian Dialogues. Under the guiding theme “The Decade of Transformation – Optimistic Perspectives of a Rethinking”, the contribution, “A New Age of Enlightenment” will usher in three inspiring days.
At this remarkable event, the stage will be shared by respected personalities from various fields. Horst von Buttlar, editor-in-chief of the magazine “Wirtschaftswoche” and author of the book “The Green Decade”, will address changes triggered by crises. Nobel Prize winner Anton Zeilinger, professor emeritus at the University of Vienna, will address the exciting topic of chance.
I would like to express my sincere thanks to the organisers, especially Secretary General Johanna Franz and Maximilian Franz, for the invitation and their tireless work to realise this momentous event.
Further information on the event, including more details on the speakers below and the programme, can be found on the Carinthian Dialogues website https://www.carinthische-dialoge.at/aktuelles-programm/.

Expedition Andaman Sea supports UNEP’s Clean Seas Initiative

Andaman Sea Beach Cleaning

Following the inspiring examples of only.one, beachcleaner.de, blue-awareness.com and many others, the Global Offshore Sailing Team also followed its long-standing tradition of standing up for the sea by supporting UNEP’s Global Goals during Expedition Andaman Sea 2023. The Expedition Corps consisted of Guido Zoeller, Jochen Werne, Benon Janos, Marco Schroeter, Sascha Adam, Sven O. Mueller, Sven Streiter, Christoph Impekoven and Viktor Metz.

On 19 April 2023, the team landed on the remote tiny southern beach of Ko Hi. Despite its remoteness, the beach contained an enormous amount of plastic waste that had accumulated there over the years. The team cleaned parts of the beach and brought everything possible to the base, where it is now sent to the recycling process.

UNEP’s Clean Seas Initiative and the Valiant Efforts of the Global Offshore Sailing Team

The United Nations Environment Programme’s (UNEP) Clean Seas Initiative is a vital global effort aimed at combating marine plastic pollution, a pressing environmental issue that threatens the health of our oceans and marine life. By rallying governments, businesses, and individuals to take decisive action, the Clean Seas Initiative is making significant strides towards achieving the Sustainable Development Goals (SDGs), particularly Goal 14: Life Below Water. A shining example of dedicated environmental stewardship is the Global Offshore Sailing Team (GOST), whose remarkable contributions have been recognized with the prestigious Bavarian States Medal.

Launched in 2017, UNEP’s Clean Seas Initiative has been instrumental in raising awareness and promoting effective solutions to tackle marine pollution. It engages stakeholders at various levels, encouraging them to adopt sustainable practices, reduce plastic production and consumption, and implement policies that protect the world’s oceans. As a result, the initiative has made considerable progress in fulfilling the targets set under SDG 14, which focuses on conserving and sustainably using marine resources.

The Global Offshore Sailing Team, a passionate group of sailors and environmentalists, has been a crucial ally in this fight against marine plastic pollution. Through their expeditions, GOST has taken the message of the Clean Seas Initiative to the most remote and inaccessible parts of the world’s oceans. Their dedication to raising awareness, conducting research, and collecting vital data on the impact of plastic pollution on marine ecosystems is unparalleled.

Throughout their journeys, GOST has engaged with local communities, schools, and institutions, empowering them with knowledge and resources to join the battle against marine pollution. They have also forged partnerships with various organizations, further amplifying the reach and impact of the Clean Seas Initiative.

In recognition of their unwavering commitment to environmental conservation, the Global Offshore Sailing Team was recently awarded the Bavarian States Medal. This prestigious honor reflects the immense value of GOST’s work in championing the goals of the UNEP’s Clean Seas Initiative and their broader contributions to the global sustainability agenda.

The achievements of the Clean Seas Initiative and the Global Offshore Sailing Team are a testament to the power of collective action in addressing the urgent issue of marine plastic pollution. Their inspiring efforts serve as a reminder that every individual, community, and organization has a role to play in safeguarding the health of our oceans and preserving them for future generations.

Journal of Digital Banking: Same Game – Same Rules?

It was a pleasure contributing once again to a Henry Stewart Publication. This time in co-authorship (Christoph Impekoven & Jochen Werne) we delineate for the Journal of Digital Banking the differences between stablecoins, in particular, and ‘fiat’ currencies, in general. When you have read this paper, you will know what a stablecoin is, what types there are, how it differs from the US dollar or the euro and why the most important currency in all worlds is ‘trust’.

The Journal can be bought online HERE

Journal of Digital Banking

Journal of Digital Banking is the major professional journal publishing in-depth, peer-reviewed articles and case studies on FinTech innovation, digital disruption and how to develop a profitable, customer-focused digital banking strategy – specifically by using technology and automation to deliver efficient, secure and seamless customer experiences with lower operating costs.

Each quarterly 100-page issue – published in print and online – will feature detailed, practical articles showcasing the latest strategic thinking on how to exploit new and existing digital banking markets, business models and FinTech innovations along with actionable advice and ‘lessons learned’ from fellow digital banking professionals on the key business, risk and operational requirements for putting that strategy into practice. It will not publish advertising but rather in-depth analysis of new thinking and practice at a wide range of financial institutions, FinTech innovators and start-ups, investors, central banks and financial regulators worldwide for readers to benchmark their organisation against, with every article being peer-reviewed by an expert Editorial Board to ensure that it focuses on the digital banking professional’s perspective, the challenges they face and how they can tackle them.

Journal of Digital Banking is listed in Cabells’ Directories of Publishing Opportunities.  

Journal of Digital Banking is abstracted and indexed in the Research Papers in Economics (RePEc) database IDEAS

As such Journal of Digital Banking publishes articles on:

  • Innovative digital payment services
  • FinTech innovation
  • Digital payments product management
  • AI and machine learning
  • Mobile banking and apps
  • Blockchain
  • Open banking
  • Customer service, personalisation and user experience
  • Digitisation initiatives and replacing legacy systems
  • Investing in digital banking start-ups
  • Big Data and analytics
  • Risk, fraud and security
  • Regulation and compliance
  • Barriers to consumer adoption and how to overcome them
  • Standardisation initiatives
  • Digital, alternative and cryptocurrencies
  • Business models and partnerships
  • Digital banking operations and services

Rather than publishing advertising or the ‘bite-sized’ articles all too common on the internet, Journal of Digital Banking provides in-depth guidance and analysis on the key issues facing financial services in today’s rapidly evolving digital world, with high-quality articles from leading banks and other financial institutions, FinTech innovators and startups, central banks, financial regulators, investors, consultants and service providers, plus researchers and educators in the field.

Essential reading for Departmental Heads, Directors, Managing Directors, VPs, SVPs, EVPs and Senior Managers of:

  • Digital strategy
  • Digital banking
  • Mobile payments
  • Online banking
  • Payments innovations
  • Marketing
  • Customer insights and analytics
  • User experience
  • Payments
  • Social media
  • Payments strategy
  • Product management/strategy
  • Transaction banking
  • Payments operations and services
  • Payment systems; as well as
  • Presidents, CEOs, CTOs, CFOs, COOs and CIOs

Far-reaching influence: German AI experts quoted in Korean “theSCIENCEplus” blog article “ChatGPT – Breakthrough or Hype?”

In March 2023, the Korean blog “theSCIENCEplus” by Moon Kwang-ju published the article “ChatGPT – Breakthrough or Hype”. The article is based on the argumentation of the scinexx article “ChatGPT and Co – Opportunity or Risk?” by Nadja Podregar and refers to insights from leading German experts such as Johannes Hoffart, Thilo Hagendorff, Ute Schmid, Jochen Werne et al. Most of these experts are also organised in Germany’s leading AI platform “Learning Systems”.

Please find theORIGINAL ARTICLE HERE and a translation from Korean to English created with the German AI-platform DeepL.com below

Read 3’40”

ChatGPT – Opportunity or Risk?

Features and consequences of a new AI system

ChatGPT can write poems, essays, professional articles, or even computer code. AI systems based on large-scale language models like ChatGPT achieve amazing results, and the text is often almost indistinguishable from human work. But what’s behind GPT and its ilk? And how intelligent are such systems really?

Artificial intelligence has made rapid progress in recent years. The system, which is based on a combination of artificial neural networks, has been accessible via the Internet since November 2022, so it was only through ChatGPT that many people realised what AI systems can already do. His impressive achievements sparked a new debate about the opportunities and risks of artificial intelligence. This is another reason to reveal some facts and background information about ChatGPT and its “identities”.

Artificial Intelligence, ChatGPT, and the Results “Breakthrough or Hype?”

“In my first conversation with ChatGPT, I couldn’t believe how well my questions were understood and put into context.” These are the words of Johannes Hoffart, head of SAP’s AI department. OpenAI’s AI system has been causing sensation and amazement around the world since it first became accessible to the general public via a user interface in November 2022.

A flood of new AI systems

In fact, thanks to neural networks and self-learning systems, artificial intelligence has made huge strides in recent years. AI systems have also made tremendous progress in the human domain, whether it’s mastering strategy games, deciphering protein structures, or writing programme code. Text-to-image generators like Dall-E, Stable Diffusion, or Midjourney create images and collages in the desired style in seconds based solely on textual descriptions.

Perhaps the biggest leap in development has been in language processing. So-called Large Language Models (LLMs) have been developed to date, allowing these AI systems to carry out dialogues, translate texts, or write texts in an almost human-like form. These self-learning programmes are trained using millions of texts of all kinds and learn which content and words occur most often and in which context, and are therefore most relevant.

What does ChatGPT do?

The most well-known of these major language models is GPT-3, the system behind ChatGPT. At first glance, this AI seems to be able to do almost anything. It answers all kinds of knowledge questions, but it can also solve more complex linguistic tasks. For example, if you ask ChatGPT to write a 19th-century novel-style text on a particular topic, it will do so. ChatGPT also writes school essays, scientific papers, or poems with ease and without hesitation.

OpenAI, the company behind ChatGPT, lists about 50 different types of tasks that a GPT system can perform. These include writing texts in different styles, from film dialogues to tweets, interviews or essays, “micro-horror story creators” or “critiquing chatbot Marv”. The AI system can also write recipes, find colours to match your mood, or be used as an idea generator for VR games and fitness training. GPT-3 is also programmable and can convert text into program code in a variety of programming languages.

Just the tip of the iceberg

It’s no surprise that ChatGPT and its “colleagues” are hailed by many as a milestone in AI development, but can GPT-3 and its successor GPT-3.5 really make such a quantum leap? “In a way, it’s not a big change,” said Tilo Hagendorf, an AI researcher at the University of Tübingen. Similarly powerful language models have been around for a long time. “But what’s new now is that companies have dared to attach such language models to a simple user interface.”

Unlike before, when such AI systems were only tested or used in narrowly defined, private areas, ChatGPT now allows everyone to try out for themselves what is already possible with GPT and its ilk. “This user interface is really what started all this crazy hype,” Hagendorff said. In his assessment, ChatGPT is definitely a game changer in this regard. Because now other companies will offer their language models to the general public. “And then the creative potential that will be unleashed, the social impact it will have, I don’t think we know anything about that.”

Consequences for education and society

The introduction of ChatGPT is already causing considerable upheaval and change, especially in education. For pupils and students, AI systems now open up the possibility of having homework, school essays, or seminar reports that are simply prepared by artificial intelligence. The quality of many ChatGPT texts is such that they are not easily exposed as AI-generated.

As a result, many classical forms of learning success control may become obsolete in the near future. Schmidt, head of the Cognitive Systems working group at the University of Bamberg. Until now, knowledge learnt at school, and sometimes even at university, has mainly been tested by simple queries. However, competences also include the derivation, verification, and practical application of what has been learnt. In the future, for example, it may make more sense to conduct test interviews or set tasks involving AI systems.

“Large-scale language models like ChatGPT are not only changing the way we interact with technology, but also the way we think about language and communication,” said Jochen Werne of Prosegur. “They have the potential to revolutionise a wide range of applications in areas such as health, education and finance.”

METAVERSE. Hype or Disruptive Technology?

It is my great pleasure to join some of Europe’s leading B2B marketing and e-commerce experts at this year’s PROJECT NETWORKS STRATEGY SUMMIT to discuss the potential that arises from technological advances and initiatives such as the Metaverse. In the introductory keynote on the topic, I will explore the following topics in more depth:

Keynote: METAVERSE. Hype or all-changing?

The History of the Metaverse: From Snow Crash to Google Maps and Mark Zuckerberg’s $10 billion visions of a digital world.
Is the Metaverse becoming a reality?
Data: Be prepared – The Metaverse will increase the demand for for data engineers and AI developers
Marketing in the Metaverse

For everyone who‘s already interested to prepare for the disussion, a quick introduction by OpenAI‘s ChatGPT to the topic: METAVERSE. Hype or Disruptive Technology

The metaverse is a term that has gained popularity in recent years. It refers to a virtual world where people can interact with each other through avatars and digital goods. Some consider the metaverse to be hype, others see it as a breakthrough technology that will change various aspects of our lives. This paper will explore the concept of the metaverse and evaluate whether it is hype or a disruptive technology.

First of all, it is important to understand what the metaverse is and how it works. The metaverse is a collective, virtual, shared space created through the convergence of various technologies, including augmented reality (AR), virtual reality (VR), blockchain and the Internet of Things (IoT).^1 The metaverse provides a multidimensional experience that allows users to interact in real time with each other, digital assets and real objects. The idea of the metaverse is not new and has already been taken up in various media such as films, video games and books. However, recent technological advances have made it possible to create a metaverse that is closer to reality.

One of the main arguments for the metaverse being hype is that it is still at an early stage of development and there is much speculation about its possible uses. Currently, the best-known example of the metaverse is the popular online game Second Life, which was launched in 2003.^2 Second Life has successfully created a virtual world in which users can interact with each other, but it has not had a significant impact on the real world. Moreover, current applications of the metaverse are limited to games, social networking and digital art. This has led some to believe that the metaverse is hype and will not have a significant impact on society.

On the other hand, the metaverse has the potential to be a disruptive technology that will change various aspects of our lives. One of the most important areas where the metaverse could have an impact is the economy. The metaverse enables the creation and exchange of digital goods that can have real value. This has led to the emergence of non-fungible tokens (NFTs), which are unique digital assets that can be bought and sold on the blockchain. By 2021, the market for NFTs reached $2.5 billion, and is expected to continue growing in the coming years.^3 The metaverse has also opened up new opportunities for businesses, including virtual real estate, advertising and e-commerce.

Another area where the metaverse could have an impact is education. The metaverse offers a new way of learning that is immersive and interactive. For example, students could use the metaverse to research historical events, visit different countries or even explore space. This would allow for a more engaging and memorable learning experience that could lead to better academic outcomes.

In conclusion, although considered hype by some, the metaverse has the potential to be a disruptive technology that will change various aspects of our lives. The metaverse offers a new way of interacting with each other, with digital goods and with the real world. It has the potential to revolutionise business, education and other areas of our lives. Although the metaverse is still at an early stage of development, it is clear that it will continue to be of interest to researchers, entrepreneurs and investors in the years to come.

Sources:

Al-Rikabi, A. (2020). Metaverse: A virtual shared space. Advanced Science News, 7(9), 1903421.
Wagner, J. (2021). The story of the metaverse. VentureBeat.
Statista. (2021). Market capitalisation of non-fungible tokens