The global messaging system collaborated with 13 banks on experiments using privacy-enhancing technologies (PETs) to let institutions securely share fraud insights across borders, according to a Monday (Sept. 15) press release.

In one instance, the PETs allowed participants to verify intelligence on suspicious accounts in real time, “a development which could speed up the time taken to identify complex international financial crime networks and avoid fraudulent transactions being executed,” the release said.

In another case, participants employed a combination of PETs and federated learning, or an AI model that “visits” institutions to train on their data locally and lets them work together without sharing customer information, to spot anomalous transactions, per the release.

Trained using synthetic data from 10 million artificial transactions, the model was twice as effective in identifying fraud than a model trained using a single institution’s dataset, the release said.

“These experiments demonstrate the convening power of Swift as a trusted cooperative at the heart of global finance,” Rachel Levi, head of AI for Swift, said in the release. “A united, industry-wide fraud defense will always be stronger than one put up by a single institution acting alone. The industry loses billions [of dollars] to fraud each year, but by enabling the secure sharing of intelligence across borders, we’re paving the way for this figure to be significantly reduced and allowing fraud to be stopped in a matter of minutes, not hours or days.”

In the wake of these experiments, Swift plans to widen participation before beginning a second round of tests, which will use real transaction data in hopes of demonstrating the technologies’ effect on real-world fraud, the release said.

When it comes to preserving trust in financial transactions, sharing data is important.

“It’s a team sport,” Entersekt Chief Product Officer Pradheep Sampath told PYMNTS in August. “And the thread that binds us all together is data that’s actionable, shared in good faith, and governed responsibly.”

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The secret to human intelligence can’t be replicated or improved on by artificial intelligence, according to researcher Angus Fletcher.

Fletcher, a professor of English at The Ohio State University’s Project Narrative, explains in a new book that AI is very good at one thing: logic. But many of life’s most fundamental problems require a different type of intelligence.

“AI takes one feature of intelligence – logic – and accelerates it. As long as life calls for math, AI crushes humans,” Fletcher writes in the book “Primal Intelligence.”

“It’s the king of big-data choices. The moment, though, that life requires commonsense or imagination, AI tumbles off its throne.  This is how you know that AI is never going to run the world – or anything.”

Instead, Fletcher has developed a program to help people develop their primal intelligence, a program that has been successfully used with groups ranging from the U.S. Army to elementary school students.

At its core, primal intelligence is “the brain’s ancient ability to act smart with limited information,” Fletcher said.

In many cases, the most difficult problems people face involve situations where they have limited information and need to develop a novel plan to meet a challenge.

The answer is what Fletcher calls “story thinking.”

“Humans have this ability to communicate through stories, and story thinking is the way the brain has evolved to work,” he said.

“What makes humans successful is the ability to think of and develop new behaviors and new plans. It allowed our ancestors to escape the predator.  It allows us to plan, to plot our actions, to put together a story of how we might succeed.”

Humans have four “primal powers” that allow us to act smart with little information.

Those powers are intuition, imagination, emotion and commonsense. In the book, Fletcher expands on each of these and the role they have in helping humans innovate.

In essence, he says these four primal powers are driven by “narrative cognition,” the ability of our brain to think in story. Shakespeare may be the best example of how to think in story, he said.

Fletcher, who has an undergraduate degree in neuroscience and a PhD in literature, discusses in the book how Shakespeare’s innovations in storytelling have inspired innovators well beyond literature. He quotes people from Abraham Lincoln to Albert Einstein to Steve Jobs about the impact reading Shakespeare had on their lives and careers.

Many of Shakespeare’s characters are “exceptions to rules” rather than archetypes, which encourages people to think in new ways, Fletcher said.

What Shakespeare has helped these pioneers – and many other people – do is see stories in their own lives and imagine new ways of doing things and overcoming obstacles, he said.

That’s something AI can’t do, he said.  AI collects a lot of data and then works out probable patterns, which is great if you have a lot of information.

“But what do you do in a totally new situation? Well, in a new situation you need to make a new plan. And that’s what story thinking can do that AI cannot,” he said.

The U.S. Army was so impressed with Fletcher’s program that it brought him in to help train soldiers in its Special Operations unit.  After seeing it in action, the Army awarded Fletcher its Commendation Medal for his “groundbreaking research” that helped soldiers see the future faster, heal quicker from trauma and act wiser in life-and-death situations.

In the book, Fletcher gave an example of how one Army recruit used his primal intelligence to overcome obstacles in the most literal sense.

As part of its curriculum, Army Special Operations had a final test for recruits: an obstacle course of logs and ropes. The recruits were told they had the ring the bell at the end of the course before time expires in order to pass the test.

This particular recruit knew he couldn’t beat the clock. At the starting line, he thought of a new plan: he ran around the obstacle course, rather than through it, ringing the bell in record time.

While other military schools would have flunked him, Special Operations passed him, based on his ingenuity in passing the test, Fletcher said.  As the Army monitored his career after graduation, it found he outperformed many of his classmates on field missions.

The value of primal intelligence works in all walks of life, including business. While business often emphasizes management, Fletcher said primal intelligence shines when leadership is needed.

“Management is optimizing existing processes. But the main challenge of the future is not optimizing things that already work,” Fletcher said.

“The challenge of the future is figuring things out when we don’t know what works. That’s what leadership is all about, and that’s what story thinking is all about.”

In business and elsewhere, Fletcher said AI has a role. But it should not be seen as a replacement for human intelligence.

“Humans are able to say, this could work but it hasn’t been tried before. That’s what primal intelligence is all about,” he said.

“Computers and AI are only able to repeat things that have worked in the past or engage in magical thinking. That’s not going to work in many situations we face.”