Federal Reserve Touts AI's Potential in Cross-Border Payments and B2B Commerce

At Sibos, Christopher Waller, a member of the Board of Governors of the Federal Reserve System, delivered a speech on artificial intelligence and banking. He emphasized the potential benefits of AI in payments and commerce, particularly in cross-border transactions and business-to-business (B2B) purchases.

Waller noted that AI agents could excel at complex optimization problems, such as finding the most efficient payment routes, managing foreign exchange conversions, and optimizing working capital. This could improve the efficiency of cross-border payments.

The Federal Reserve official also highlighted the potential for agentic commerce in B2B purchases, where AI agents can negotiate terms with suppliers and develop payment strategies to optimize working capital. However, he emphasized the need for robust controls and monitoring due to the higher transaction values associated with B2B commerce.

Waller's speech was complemented by American Express' announcement of its next-generation corporate cards, which integrate AI-driven tools to automate expense management, simplify financial operations, and provide greater visibility into spending. The new offerings include expense management software, an Amex Expense app, and planned AI agents that can help manage reporting requirements and give finance teams insights into spending.