Global analytics leader FICO has introduced the FICO® Focused Foundation Model for Financial Services (FICO® FFM), a purpose-built generative AI framework designed to deliver precise, auditable, and resource-efficient outcomes for highly regulated financial environments. The offering includes two new products—the FICO® Focused Language Model (FLM) and FICO® Focused Sequence Model (FSM)—which are engineered to reduce hallucinations, improve transparency, and set a new benchmark for Responsible AI in the industry.
Unlike general-purpose large language models, FICO’s domain-specific models are trained on curated financial data, requiring up to 1,000 times fewer resources to build and maintain. This makes them not only more accurate and auditable but also more cost-effective. Both models are equipped with FICO’s patent-pending Trust Scores, a system that allows organizations to assign risk thresholds, rank output reliability, and deploy GenAI with greater confidence.
“The focused foundation model represents a practitioner’s approach to GenAI in financial services, moving beyond trying to refine universal knowledge models,” said Dr. Scott Zoldi, Chief Analytics Officer at FICO. “FICO FFM enables enterprises to use small language models built for their specific business problems, significantly helping to mitigate hallucinations, provide transparency, auditability, and adaptability.”
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The FLM leverages domain-specific contextual data to enhance compliance and risk management use cases, while the FSM captures long-range transaction sequences to improve fraud detection, real-time risk assessment, and customer engagement strategies. According to IDC’s Megha Kumar, these smaller, task-focused models are “transforming how GenAI is used in financial risk management and compliance by providing highly accurate, domain-specific insights and reducing misinformation.”
The launch builds on FICO’s broader push toward Responsible AI, underscored by its recent global survey revealing that 56.8% of financial services leaders view Responsible AI standards as the key to unlocking reliable returns from AI investments. With multiple patents filed on its new modeling techniques and trust-scoring frameworks, FICO positions its FFM, FLM, and FSM as critical tools for institutions seeking precision, accountability, and scalability in deploying AI.