Real-time artificial intelligence for large-scale transaction processing and the industry’s first quantum-proof system

Real-time artificial intelligence for large-scale transaction processing and the industry’s first quantum-proof system

IBM unveils IBM® z16™, IBM’s next-generation system with an on-chip artificial intelligence accelerator that provides latency-optimized inference. This innovation is designed to enable customers to analyze real-time transactions at scale for critical applications such as credit cards, healthcare and financial transactions. Building on IBM’s historic leadership in security, the IBM z16 is also specifically designed to help protect against threats that could be used in the near future to break current encryption technologies.

IBM innovations, including the IBM z16, have been the technological backbone of the global economy for decades. Today’s modernized IBM mainframe is at the heart of hybrid cloud environments and is trusted by two-thirds of Fortune 100 companies, 45 of the top 50 global banks, 8 of the top 10 insurers, 7 of the top 10 global retailers, and 8 of the top 10 telecommunications operators, as a highly secure platform for running their most critical applications. For example, according to a recent study commissioned by IBM and conducted by Celent, titled “Operationalizing Fraud Prevention on IBM Z,” IBM zSystems execute 70% of global transactions, by value . [2]

Real-time enterprise AI will revolutionize industries with new use cases and applications

Financial institutions around the world are struggling with the impacts of fraudulent activity on their revenues and their interactions with consumers. Credit card fraud is the most prevalent type of fraud among consumers in the seven countries surveyed, according to a new study from IBM and Morning Consult titled “2022 IBM Global Financial Fraud Impact Report”. Additionally, respondents said they believe banks and payment networks should be primarily responsible for fraud prevention. But running large-scale, real-time deep learning AI models has not been possible until now due to latency issues, which is why fraud detection models are only run less than 10% of high-volume transactions so far – a significant number of frauds go undetected.

The IBM z16 uniquely combines artificial intelligence model inference, via its IBM Telum processor, with the highly secure and reliable high-volume transaction processing that IBM is renowned for. For the first time, banks can analyze fraud in large-scale transactions: the IBM z16 can process 300 billion inference requests per day with a latency of just one millisecond[3]. For consumers, this could mean reducing the time and energy required to deal with fraudulent transactions on their credit card. For both merchants and card issuers, this could mean a reduction in lost revenue, as consumers could avoid the frustration associated with transaction rejections that could lead them to turn to other card issuers for future transactions.

Other threats, including tax evasion and organized retail theft, are challenges for governments and businesses to master. Real-time payments and alternative payment methods such as cryptocurrencies challenge traditional fraud detection techniques. Applying the new capabilities of the IBM z16 to other industries can help create entirely new use cases, including:

Loan approval: to speed up the approval of business or personal loans.

- Clearing and settlement: to identify trades and/or operations that may be high risk prior to settlement.

- Federated learning for retail: to better model the risk of fraud and theft.

Securing data with the industry’s first quantum computer-resistant system

In a hybrid cloud environment with on-premises and public cloud resources, it’s critical to protect against today’s threats and position yourself against cybercriminals who can steal data now to decrypt it later. Leveraging IBM technologies such as Pervasive Encryption and Confidential Computing, the IBM z16 takes cyber resilience to the next level by protecting data against future threats. could evolve with advances in quantum computing.

Industry’s first quantum computer-resistant system[4], the IBM z16 is based on Euclidean Network Cryptography, an approach to building security primitives that help protect data and systems against current and future threats. With the IBM z16’s quantum computer-resistant cryptography, companies can prepare for the future of their applications and data today.

With a secure boot process (meaning bad actors can’t inject malware into the boot process to take control of the system from startup), IBM z16 customers can strengthen their cyber resilience protocol and maintain control of their system. In addition, the Crypto Express 8S (CEX8S) hardware security module will provide customers with both classical and quantum computer-resistant encryption technology to help them address their use cases requiring confidentiality, integrity and non-disclosure. -repudiation of information. The IBM z16’s secure initialization process and quantum computing-resistant cryptography can help customers withstand future quantum computing threats, including “harvest now, decrypt later” attacks. , decrypt later) that can lead to extortion, loss of intellectual property, and disclosure of other sensitive data.

Modernization for hybrid cloud

Over the past three years, IBM has made significant investments as part of its commitment to adopting open-source technology on the IBM zSystems platform and establishing a common developer experience in the hybrid cloud. These solutions are designed to help our customers leverage their investments in – and leverage the strengths of – their existing IT infrastructure, applications and clouds seamlessly, while giving them the flexibility to run, design , manage and modernize “Cloud-native” applications on the architecture of their choice.

Recent announcements under this approach include:

- IBM Z and Cloud modernization stack: to help customers increase their agility and accelerate their transformation, including for projects developed with the open-sources on the market.

- IBM Z and Cloud Modernization Center: a digital gateway to a wide range of IBM Consulting tools, training, resources, ecosystem partners and industry expertise to help IBM zSystem customers accelerate the modernization of their applications, data and processes in an open hybrid cloud architecture.

- Custom pricing: a complete “Cloud-by-use” type approach which is calculated according to variations in application consumption and business needs.

- Introduction of Anaconda in Linux on Z: an example of introducing data science models and libraries into these enterprise platforms, providing a consistent and seamless user experience for the data scientist anywhere in hybrid cloud environments.

- Streamlined Support: scaled or industrialized support. IBM Technology Support Services provides IBM z16 customers with turnkey support to help them predict and prevent unplanned outages, as well as technical services that accelerate how businesses take advantage of the opportunities offered by hybrid technology environments. With the IBM z16, IBM used a highly collaborative approach that listens to customer expectations involving several hundred people from more than 70 customers, a modus operandi already launched for the design of future IBM mainframe systems. The IBM z16 will be commercially available

[1] Disclaimer: Quoted by a third-party analyst. The IBM z16 with the Crypto Express 8S card provides quantum-resistant APIs providing access to quantum-resistant algorithms that have been selected as finalists during the NIST-led PQC standards process. submissions. Quantum computer-resistant cryptography refers to efforts to identify algorithms resistant to attacks from both classical and quantum computers, in order to preserve information security even after a large-scale quantum computer has been built. Source: https://www.etsi.org/technologies/q…. These algorithms are used to guarantee the integrity of a number of machine programs and startup processes. The IBM z16 is the first system in the industry to be protected by quantum-resistant technology on multiple layers of computer programs.

[2] “Operationalizing Fraud Prevention on the IBM Z”, a report commissioned by IBM and produced by Celent. March 2022.

[3] Disclaimer: Performance is extrapolated from internal IBM tests running local inference operations in a z16 LPAR with 48 IFLs and 128 GB of memory on Ubuntu 20.04 (SMT mode) using a synthetic fraud detection model at credit card (https://github.com/IBM/ai-on-z-frau…) leveraging the built-in accelerator for AI on the Telum chip. The benchmark was run with 8 parallel threads, each associated with the first core of a different chip. The lscpuc command was used to identify the core-chip topology. A batch size of 128 inference operations was used. Results may vary.

[4] Disclaimer: Quoted by a third-party analyst. The IBM z16 with the Crypto Express 8S card provides quantum-resistant APIs providing access to quantum-resistant algorithms that have been selected as finalists during the NIST-led PQC standards process. submissions. Quantum computer-resistant cryptography refers to efforts to identify algorithms resistant to attacks from both classical and quantum computers, in order to preserve information security even after a large-scale quantum computer has been built. Source: https://www.etsi.org/technologies/q…. These algorithms are used to guarantee the integrity of a number of machine programs and startup processes. The IBM z16 is the first system in the industry to be protected by quantum-resistant technology on multiple layers of computer programs.

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Real-time artificial intelligence for large-scale transaction processing and the industry’s first quantum-proof system


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