IBM Pulls the Curtain on New Innovations, Supporting Generative AI Use Cases in Financial Services

Business analytics enterprise, IBM, has unveiled new technologies designed to significantly scale processing capacity across IBM Z mainframe systems helping accelerate the use of traditional AI models and Large Language Models (LLMs).

With many generative AI projects leveraging LLMs moving from proof-of-concept to production, the demands for power-efficient, secured and scalable solutions have emerged as key priorities.

Recent Morgan Stanley research projects generative AI’s power demands will increase by as much as 75 per cent annually over the next several years, which would put it on track to consume as much energy in 2026 as Spain did in 2022.

Introducing new innovations 

IBM unveiled a new processor chip, dubbed the ‘IBM Telum II Processor’, boasting increased frequency, memory capacity, a 40 per cent larger cache and integrated AI accelerator core. It expects the new processor to help enterprise compute solutions for LLMs, servicing the industry’s complex transaction needs.

A new Data Processing Unit (DPU) on the chip will look to accelerate complex IO protocols for networking and storage on the mainframe, simplifying system operations.

IBM also pulled the curtain on its new ‘IBM Spyre Accelerator’ chip, which will provide additional AI computing capabilities, to complement the Telum II processor.

Working together, the Telum II and Spyre chips will support ensemble methods of AI modelling – the practice of combining multiple machine learning or deep learning AI models with encoder LLMs. By leveraging the strengths of each model architecture, ensemble AI may provide more accurate and robust results compared to individual models.

“Our robust, multi-generation roadmap positions us to remain ahead of the curve on technology trends, including escalating demands of AI,” explained Tina Tarquinio, VP of product management of IBM Z and LinuxONE at IBM. “The Telum II Processor and Spyre Accelerator are designed to deliver high-performance, secured, and more power-efficient enterprise computing solutions. After years in development, these innovations will be introduced in our next-generation IBM Z platform so clients can leverage LLMs and generative AI at scale.”

IBM’s long-standing partner, Samsung Foundry, will manufacture the new Telum II processor and the IBM Spyre Accelerator. Continuing the partnership, the two entities plan to support a range of advanced AI-driven use cases designed to unlock business value and create new competitive advantages.

Serving generative AI use cases

The combined processing power of the new chips will look to provide an on-ramp for the application of generative AI use cases, such as:

Insurance claims fraud detection

Enhanced fraud detection in home insurance claims through ensemble AI, which combines LLMs with traditional neural networks geared for improved performance and accuracy.

Advanced Anti-Money Laundering

Advanced detection of suspicious financial activities, supporting compliance with regulatory requirements and mitigating the risk of financial crimes.

AI Assistants

Driving the acceleration of the application lifecycle, transfer of knowledge and expertise, code explanation, as well as transformation.

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