Mastercard and Create Labs team up to develop an AI tool for small business Mastercard and Create Labs team up to develop an AI tool for small business

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Mastercardโ€™s Innovative Move

Mastercard Incorporated is making waves with its latest announcement of an AI tool, named the Mastercard Small Business AI, which is designed to assist small business owners. This strategic move symbolizes the companyโ€™s commitment to fostering the growth of small businesses in an ever-changing and challenging economic landscape. Mastercard has teamed up with Create Labs, a social venture, to bring this innovative tool to life.

Driving Financial Inclusion

Mastercardโ€™s decision to develop this AI tool aligns with its broader mission of promoting financial inclusion. The company has previously pledged to integrate 1 billion individuals and 50 million MSMEs into the digital economy by 2025. Leveraging its extensive network, technological capabilities, and strategic collaborations, Mastercard continues to empower SMEs by offering enhanced digital solutions and support services.

The Power of AI

The Mastercard Small Business AI will harness the potential of generative AI to provide valuable insights on key areas such as crafting business plans, acquiring customers, and accessing grants. Furthermore, recent reports from the UPS Store Survey indicate that 88% of small businesses value mentorship, underscoring the significant potential impact of Mastercardโ€™s AI tool in supporting and guiding small business owners.

Bridging the Gap

One of the key features of the AI tool is its ability to engage users in a conversational manner, offering a seamless and efficient experience. Leveraging content from Digital Doors and collaborating with companies such as Blavity Media Group, Newsweek, Group Black, and TelevisaUnivision, the chatbot aims to provide unbiased and valuable content through licensed interviews, articles, and podcasts.

Future Outlook

Mastercard plans to roll out the AI tool in the United States by late 2024, with aspirations for international expansion in the future. The company is considering offering the basic service for free, with the potential for additional premium content at a fee. These initiatives are poised to solidify Mastercardโ€™s position and enhance its offerings in the evolving landscape of small business support.

Stock Performance and Recommendations

Mastercardโ€™s stock has shown resilience, gaining 6.5% in the past six months, outperforming the industryโ€™s 5.8% growth. With a current Zacks Rank #3 (Hold), Mastercard continues to attract investor attention with its innovative strategies and market positioning.

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Stocks to Consider

For investors seeking opportunities in the Business Services sector, some noteworthy stocks include Envestnet, Inc. (ENV), Gartner, Inc. (IT), and FirstCash Holdings, Inc. (FCFS). With Envestnet and Gartner holding a Zacks Rank #1 (Strong Buy), and FirstCash Holdings carrying a Zacks Rank #2 (Buy), these companies present compelling investment options for those eyeing the business services space.

When analyzing the performance of these stocks, Envestnet has consistently surpassed estimates and demonstrates promising growth prospects. Gartner has shown significant earnings outperformance and is poised for future earnings and revenue growth. FirstCash Holdings has also consistently outperformed expectations and presents a positive outlook for earnings and revenue.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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