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Hi fintech fam! 💜

I had the most amazing time last night hanging out with a fantastic group of women from our Fintech Is Femme community. Can you believe it's Thanksgiving week already?

This year, I'm feeling extra grateful for the incredible female friendships I've been lucky enough to cultivate. And guess what? It's all thanks to this platform that I've found so much support and mentorship from fellow women in fintech.

Now, I want to spread this feeling of power to even more women in our industry.

So, here's the deal: my December calendar is filling up fast, but I wanted to make sure to invite you to a super fun event I'm hosting.

It's called "Sip and Shop," and it's happening at my friend's amazing jewelry store in NYC. The best part? It's owned by a fabulous woman who is also AAPI. I would absolutely love to see you there, mingling with other incredible women from our community.

Space is limited, so please RSVP here.

Now, let's move on to the news!

_{Was this email forwarded to you?}

ARTIFICIAL INTELLIGENCE

OpenAI Saga: What Fintech Leaders Need To Know

When Mira Murati became the interim CEO of OpenAI on Friday, I, like many of you, celebrated.

The idea of a female leader at the helm of the artificial intelligence revolution, with its potential risks and opportunities for our fintech sector, is inspiring. Research shows over and over that women build more ethical companies and foster more profitable ones.

That's not the story I'm writing today. But I am here to decode the leadership changes at OpenAI to get you up to speed, why it matters to fintech leaders and operators, and what we can learn from it. 

We must remember that in a century where AI is poised to become one of the most influential technologies for humanity, getting it right hinges on the people behind it. 

This is especially relevant to the fintech industry, given its keen interest in AI to enhance financial services.

Throughout this year, fintech companies have made bold claims about using artificial intelligence, positioning it as the key to staying ahead in the competitive financial industry. For example, TechCrunch recently reported on how significant players like Ramp and Brex have been vocal about believing that AI will revolutionize their customer-serving approach.

The recent leadership shake-up at OpenAI has added unexpected twists and turns to the story. 

The TL;DR

On Friday afternoon, the board of directors ousted Altman, the Founder and CEO of the company responsible for ChatGPT. The reasoning could have been more specific, but the board cited a lack of transparency in his communications, leading to a loss of confidence in his ability to lead OpenAI.

This sudden move took even OpenAI's most significant stakeholder, Microsoft CEO Satya Nadella, by surprise, who learned about the decision just a minute before we did. 

It's crucial to note that the OpenAI board is governed as a nonprofit aimed at building AI for the benefit of humanity. 

Later, the company realized the need to drive revenue and raise funds. This led to the creating of a commercial arm, encompassing products like ChatGPT.

The board's allegiance lies with the nonprofit OpenAI, prioritizing AI safety and alignment with human values over commercial interests. The abrupt decision to remove Altman raises questions about whether he jeopardized the future of AI safety or if there were underlying tensions regarding the pace of commercialization.

Surprisingly, Ilya Sutskever, a key board member and chief scientist at OpenAI, who orchestrated Altman's ouster, has expressed regret. More than 700 OpenAI employees, including former interim CEO Murati, have signed a letter calling for the resignation of board members and Altman's reinstatement. This indicates a deep belief in Altman's leadership among the employees.

Despite Altman's attempts to negotiate with the board and Murati stepping away in support of leaving OpenAI if Altman isn't reinstated, the board has started recruiting a new CEO. Though not as impressive as Murati, the former CEO of Twitch has expressed solidarity with the OpenAI team.

Altman has been offered a position at Microsoft, but it still needs to be officially announced. The possibility of Altman returning as OpenAI CEO remains, as does the potential mass exodus of employees to Microsoft if the situation is unresolved.

Why We Should Care

While fatigue may set in over a year of constant AI discussions, OpenAI's influence has compelled the fintech industry to define its stance in the AI roadmap. The intricate web of digital transactions, mobile banking, and decentralized finance positions AI as a vital ally for shaping the future of finance.

As Naré Vardanyan, CEO of Ntropy, put it, despite the OpenAI saga, the paramount role of computational power in AI remains clear. The challenge is balancing research costs with commercial deployments.

Funding AI research is historically expensive, with high risk and long payback periods. In AI, the stakes are high, but the distinct unit economics of deploying models pose a challenge due to high inference costs.

Establishing a successful business that funds ongoing research has evolved. Companies may bleed cash even with substantial user numbers and revenue, especially without additional R&D. Scaling newer models becomes complex, demanding significant funding.

While not directly commenting on OpenAI, these considerations reflect a reality we must address. If numerous AI startups commercialize or enterprises deploy AI at scale, there's a risk of depletion of computational resources despite overall increases. This challenge demands attention for a future where intelligence is accessible to many, not just a few.

At the core of fintech lies vast data reservoirs, and AI's ability to analyze massive datasets transforms this information into actionable insights. AI-driven analytics enhance fraud detection, adapt to evolving threats, and provide personalized customer experiences, making them indispensable for the industry's growth.

Security concerns in fintech are met head-on by AI, too, which acts as a vigilant guardian against cyber threats. Machine learning models continuously evolve to stay ahead of potential risks, safeguarding financial transactions.

In an industry valuing speed and efficiency, AI optimizes processes, automates tasks, and streamlines operations. From customer onboarding to compliance processes, artificial intelligence reduces manual efforts, minimizes errors, and increases overall efficiency, allowing fintech companies to focus on innovation.

AI has become a powerful ally for fintech in evolving regulations. By automating compliance processes and ensuring adherence to regulations, companies can navigate the complex financial governance landscape more easily.

Ultimately, the recent upheaval at OpenAI reflects the fintech industry's responsibility to align AI with human values and ensure its responsible use. 

For fintech, the bottom line is clear. Embracing AI is crucial for:

• Staying competitive. 

• Mitigating risks.

• Delivering inclusive value to customers.

The symbiosis of AI and fintech isn't just a trend but a strategic imperative, reshaping the industry's future and unlocking new possibilities for businesses and consumers.

Our industry must actively care about the people chosen to lead AI. The success — or failure — of our industry’s future depends on it.

_{WTF ELSE?}

• Central Bank Digital Currency development enters the next phase

• What's in store for 2024? Innovations in B2C and B2B fintech

• US challenger HMBradley winds down consumer business, eyes B2B space

• Aduna Capital launches $20 million fund to invest in Northern Nigeria and female founders

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_{I WANT IT, I GOT IT}

• 👀 Today’s Watch: I'm currently watching Blue Eye Samurai on Netflix. The series revolves around a mixed-race sword master who leads a concealed life (as women were not permitted to be Samurai in 17th century Japan) and embarks on a journey for vengeance. Being a mixed-race Asian American, I've eagerly awaited a show that resonates so deeply with my own "half" experiences.

• 📚 Today’s Read: Spent my weekend reading "Brotopia" by Emily Chang, a fascinating read into the origins of Silicon Valley's tech bro scene and how we can move beyond it.

• 🍣 Today’s Eats: It's almost Thanksgiving, and I'm in charge of the charcuterie board (not the chef of my house). What special recipes do you cook for the big feast? Reply to this email and provide me with the yummy details!

_FINTUNES

🎵 Beyoncé - I Care

In a nostalgic moment, I am sharing the official live video for this classic by Queen Bey. I have always adored watching her perform this song live, witnessing the incredible power she exudes even in moments of vulnerability. Bonus points for her all-female band.

That’s all for now! Stay safe everyone. Hug your loved ones. See you Thursday!

Love,

Nicole