FICO Launches Focused Foundation Model for Financial Services with Domain-Specific GenAI

Fair Isaac Corporation (NYSE:FICO) is one of the oversold tech stocks to invest in. On September 23, FICO announced a new suite of domain-specific GenAI models for the financial services industry, collectively called the FICO Focused Foundation Model for Financial Services/FICO FFM. The FFM is engineered to reduce hallucinations and achieve superior accuracy and trust compared to conventional GenAI models in highly regulated financial environments.

The FICO FFM product offering consists of two core components: the FICO Focused Language Model (FICO FLM) and the FICO Focused Sequence Model (FICO FSM). The models are engineered in-house, custom-built, and trained on curated, domain-specific data sets related to financial services. Unlike large, general-purpose LLMs that require massive compute power, FICO’s focused models require up to 1,000 times fewer resources to train and maintain.

The FICO FLM is built on domain-specific and task-specific contextual data, which drastically reduces the risk of hallucinations since the training data is directly relevant to the business problem. These smaller, more accurate models, which IDC analyst Megha Kumar likened to SLMs, drive a practical approach toward agentic AI and can streamline operations for financial institutions.

Fair Isaac Corporation (NYSE:FICO) develops software with analytics and digital decisioning technologies for businesses to automate, enhance, and connect decisions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company operates in two segments: Scores and Software.

While we acknowledge the potential of FICO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now.

Disclosure: None. This article is originally published at Insider Monkey.