Equifax has recently announced its embrace of cloud and artificial intelligence (AI) technologies as part of its strategy to drive the company’s future progress, with the expectation of cost savings and innovation in the coming years.
In a recent earnings release, the global data, analytics, and technology company revealed its utilization of the new EFX Cloud, with a significant 89% of its new models and scores now being developed using AI and machine learning (ML). This demonstrates a substantial increase from previous years, with 85% in the first quarter, 70% in 2023, and 60% in 2022.
Mark Begor, the CEO of Equifax, expressed his enthusiasm for the company’s advancement, stating, “We’re entering the next chapter of the New Equifax as we pivot from building the new EFX Cloud to leveraging our new cloud capabilities to drive our top and bottom line.”
The implementation of cloud and AI technology is expected to streamline access to Equifax’s proprietary data, accelerate new product development, and enable faster and more predictive model development. Begor also expressed confidence in the company’s investments in new products, data, analytics, and AI capabilities, projecting growth in 2024 and beyond, with an anticipated long-term revenue growth of 8% to 12%.
In addition to this promising technological shift, Equifax reported a 9% revenue growth during the second quarter. Its Workforce Solutions non-mortgage verification solutions led the way, with a noteworthy 5% revenue growth. Meanwhile, the Government and Talent Solutions in the Verification Solutions non-mortgage sector experienced an impressive 20% revenue increase.
Equifax’s U.S. Information Solutions (USIS) business unit, which offers consumer and commercial information solutions to U.S. businesses, also experienced a 7% revenue growth. The Mortgage Solutions division saw a significant 33% revenue increase, while Financial Marketing Services and Online Information Solutions saw growth rates of 7% and 5% respectively.
The International business unit of Equifax reported a revenue growth of 17% on a reported basis and 28% on a local currency basis, driven by strong performance in Latin America and Europe.
During the earnings call, Begor reassured that Equifax’s differentiated solutions will continue to support its customers’ growth, emphasizing the importance of these businesses for their clients.
Equifax’s strategic shift to cloud and AI technologies not only marks a significant evolution for the company but also demonstrates its commitment to driving value for its customers and stakeholders. With the potential for cost savings, innovation, and continued revenue growth, Equifax is well-positioned to thrive in this new era of technological advancement.