Western Union Taps AI to Move to ‘Platform Operating Model’

Western Union launched an artificial intelligence-focused partnership with India’s HCLTech.

The collaboration will see Western Union employ HCLTech’s AI solutions to move to a “platform operating model,” which will offer greater agility and scalability, according to a Monday (March 24) press release.

“Western Union will harness HCLTech’s cutting-edge digital, cloud and AI solutions to enhance platform and channel capabilities, delivering seamless and innovative customer experiences,” the release said. “HCLTech will support data-driven decision making and increased resilience through enterprise-wide infrastructure transformation.”

In addition, the partnership will see Western Union open an “advanced technology center” in the Indian city of Hyderabad to bolster its tech capabilities, per the release.

“HCLTech’s expertise will help us fulfill our mission to make world-class financial services accessible to people everywhere,” Western Union President and CEO Devin McGranahan said in the release.

HCLTech Managing Director and CEO C Vijayakumar said in the release: “This strategic partnership emphasizes our focus on empowering FinTech companies through digital engineering-led transformation…”

Western Union announced last month that its new media network business contributed to 56% revenue growth for its Consumer Services unit during the fourth quarter. The company launched the network in November, saying the offering lets companies advertise to Western Union customers using company-owned channels, reach a worldwide audience, and connect with consumers when they are in a “commerce mindset.”

Meanwhile, many companies that want to scale their adoption of generative AI find a lack of operating, safety and governance standards.

The PYMNTS Intelligence report “The Investment Impact of GenAI Operating Standards on Enterprise Adoption” found that 91% of organizations using generative AI for high-impact tasks and complex applications that directly affect business outcomes are apprehensive about the side effects of generative AI on sensitive company-wide data.

“AI adoption in enterprise procurement has been incremental, often confined to specific functions such as contract analytics or fraud detection,” PMNTS wrote Monday. “However, [generative AI’s] ability to generate insights, automate negotiations and optimize supplier management necessitates a holistic framework that extends beyond traditional AI governance models.”

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