Prem Natarajan on leading AI innovation at Capital One

Capital One, a financial services company that earns nearly $37 billion a year, has long been a pioneer in leveraging data to drive its operations. Since its founding by current CEO Richard Fairbank in 1994, the company has prioritized innovation, using technology and analytics to improve the customer experience and redefine the banking landscape. In May 2023, the company announced the hiring of Prem Natarajan as executive vice president, chief scientist and head of enterprise AI. Natarajan brings more than two decades of expertise in machine learning applications, including natural language processing, speech recognition, and computer vision, bolstered by a career that includes significant stints within the Alexa organization. ‘Amazon and in academia.

Natarajan was attracted to Capital One because of its deep cultural respect for data, a fact that became evident to him while Capital One was his client at Amazon. “Since its inception, Capital One’s differentiated use of data has stood out,” he noted. This foundation not only revolutionized the company’s entry into banking, but also established a virtuous cycle in which better data generates better analytics, which in turn improves customer interactions and generates more data.

Over the years, this data-centric approach has evolved to include scientific rigor in generating insights to improve customers’ financial lives. As Natarajan explains: “This commitment stems from our leadership, starting with our CEO Rich Fairbank, and extends to a community of scientists integrated into our business practices. » This culture of discovery is essential to ensure the company’s continued success in innovation.

Driving AI and technology strategy

Natarajan emphasizes the organization’s forward-thinking approach to technology, which surprised him even when he joined. “Capital One has always been an anchor customer during my time at Amazon,” he said. “But after joining the company, I realized the depth of its technical culture, with initiatives such as our internal technical conference and Data Week involving thousands of engineers and practitioners (from across the company). “

Capital One’s “dynamic” culture integrates cutting-edge technology into every facet of its operations. This includes AI applications such as generative AI for software development and agent assistance in call centers. “The noble goal of AI is to shift the cognitive burden from humans to systems,” Natarajan said. This principle underpins solutions designed to improve customer and associate experiences, from reducing call center wait times to strengthening fraud detection capabilities.

Building a Robust AI Foundation

A key part of Natarajan’s role is ensuring Capital One remains at the forefront of AI innovation. He emphasized the importance of foundational practices: “If you don’t treat data as a premium asset, you’re not ready for the world of AI. » Capital One’s transition to a cloud-based infrastructure illustrates its commitment to leveraging the most modern technology stack, enabling seamless adoption of new technologies and new talent.

Generative AI, in particular, has been the focus. “We have deployed generative AI capabilities for our software developers and customer-facing employees,” Natarajan explained. “While technology is transformative, we emphasize the importance of a human approach to mitigating risk. » This approach balances innovation with the high standards of reliability expected in financial services.

Collaborate across sectors

Capital One’s advancements in AI are amplified through strategic partnerships with academic institutions such as USC, Columbia University and MIT. “These collaborations expose students to real-world applications while helping us address industry-wide challenges,” Natarajan explained. He highlighted the “synergy” between academia and industry, where shared resources and expertise accelerate innovation.

Natarajan’s vision for these partnerships extends beyond immediate results. “Our goal is to build sustainable initiatives that prepare the next generation of talent to thrive in a demanding and rapidly changing world,” he said. The partnerships also serve as a platform for Capital One to contribute to broader progress in the responsible development of AI.

The importance of diversity in AI

For Natarajan, diversity is crucial to ensure that AI serves everyone equitably. “Inclusion must start at the design stage,” he said. “AI technologies must reflect the diverse modalities and perspectives of their users. Without it, we risk creating systems that fail to meet the needs of all communities.

By integrating representation throughout the AI ​​lifecycle, Capital One strives to create accessible and inclusive solutions. “It is essential to test with a wide range of users,” Natarajan added. “This is one of the hardest, but also most important, challenges in AI.”

The road ahead

Looking ahead, Natarajan is excited about the continued integration of AI into Capital One’s operations. “The future is incredibly exciting,” he said. “With every step forward, we approach innovation as a test and learn process, ensuring each step is safe and impactful. »

Natarajan’s personal journey, driven by a passion for learning and solving border problems, parallels Capital One’s trajectory. “I have always looked for opportunities to learn and contribute,” he said. “At Capital One, I’m able to do both while achieving important results for our clients and the company. »

Under Natarajan’s leadership, Capital One continues to redefine the role of technology and AI in financial services, ensuring that innovation is both human-centered and transformative.

Peter High is president of Métis strategya business and IT consulting firm. He has written three successful books, including his latest Arriving at Nimble. It also moderates the Technovation podcast series and speaks at conferences around the world. Follow him on Twitter @PeterAHigh.