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The next time you don't recognize a transaction listed on your monthly PayPal statement, rest assured: AI will likely identify the culprit and help ensure it won't happen again.

"AI has been used at PayPal for a long time, it's at the core of the company, distinguishing the good customers from the bad customers," Vadim Kutsyy, a data scientist at the online payments company, told host Michael Copeland on this week's edition of the AI Podcast.

With advances in machine learning and the deployments of neural networks, logistic regression-powered models are expanding their uses throughout PayPal.

PayPal's deep learning system is able to filter out deceptive merchants and crack down on sales of illegal products. Additionally, the models are optimizing operations. Kutsyy explained the machines can identify "why transactions fail, monitoring businesses more efficiently," avoiding the need to buy more hardware for problem-solving.

Like a true detective, the machine is a step ahead. Since it's always learning, the model was even able to personalize user experiences by serving up relevant advertisements based on client interests.

"I'm amazed, I have no clue how the model did it," Kutsyy said.

AI Podcast: The Next Hans Zimmer? How AI May Create Music for Video Games, Exercise Routines

Need some fresh music for your ears? Give a listen to last week's episode. Aiva Technologies CEO Pierre Barreau discusses how his startup is using deep learning to create music.

How to Tune in to the AI Podcast

The AI Podcast is available through iTunes, DoggCatcher, Google Play Music, Overcast, PlayerFM, Podbay, Pocket Casts, PodCruncher, PodKicker, Stitcher and Soundcloud. If your favorite isn't listed here, email us at aipodcast@nvidia.com.

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AI, NVIDIA, Paypal
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