Latest patent breakthroughs solidify FICO’s leadership in Responsible AI, applied intelligence, and transaction analytics, advancing innovation and trust across the financial ecosystem

FICO (NYSE: FICO):

Highlights:

• FICO has been awarded 10 new patents focused on Responsible AI, applied intelligence, and transaction analytics.
• FICO’s patent portfolio now includes 231 U.S. and foreign active patents with an additional 79 patent applications filed and pending.
• Patents directly enhance core FICO solutions, including FICO® Falcon® Fraud Manager and FICO® Platform, used in billions of enterprise decisions worldwide.

Global analytics software leader FICO today announced it has been awarded 10 new patents by the U.S. Patent and Trademark Office and Canadian Intellectual Property Office, reinforcing its position as a leader in Responsible AI innovation and in advancing the field of applied intelligence technology. These patents tackle critical industry challenges, including Responsible AI, bias detection, fraud prevention, and data privacy—directly enhancing the capabilities of FICO's market-leading AI solutions.

FICO's expanding patent portfolio underscores the company's commitment to advancing Responsible AI and excellence in transaction analytics. To date, FICO's patent portfolio includes over 200 U.S. and international patents. These patents represent innovative technologies aimed at helping drive profitability, customer satisfaction, customer protection, and growth across industries such as financial services, telecommunications, healthcare, retail, transportation, supply chain, and more.

"Our patent portfolio continues to grow, and it reflects our commitment to innovation and developing technological advancements for our clients that are not just powerful, but transparent and trustworthy," said Dr. Scott Zoldi, chief analytics officer at FICO. "We are helping clients solve problems responsibly in identifying why an AI model made a specific prediction or in detecting subtle biases across complex datasets. We're not just advancing AI technology—we're making Responsible AI the new competitive standard."

The 10 newly granted patents cover diverse aspects of AI and analytics technology:

• Method for Real-Time Enhancement of a Predictive Algorithm by a Novel Measurement of Concept Drift Using Algorithmically-Generated Features – a real-time monitoring algorithm that identifies systematic changes in latent behaviors of machine learning models with comparison to specified behaviors in the development of these machine learning models. This is important technology for FICO’s Responsible AI strategy and the FICO® Falcon® Fraud Manager offering.
• False Positive Reduction in Abnormality Detection System Models – reduces the fraud false-positive rate for abnormal transactions occurring at the same merchant and/or location where a consumer has transacted previously. This is an important part of FICO® Falcon® Fraud Manager and FICO® Fraud Predictor with Merchant Profiles.
• Supervised Machine Learning-Based Modeling of Sensitivities to Potential Disruption - relates to developing and using machine learning in preparing and analyzing historical data used to generate models. Allows for quantifying sensitivity of predictions regarding an entity's expected performance to some future potential disruption. This technology is core to the FICO® Resilience Index.
• Training Artificial Neural Networks with Constraints - relates to technical improvements in training computer-implemented machine learning models to promote explainability and conformance of the machine learning models with specific business requirements or objectives. These improvements are implemented into FICO® Falcon® Fraud Manager, FICO® Fraud Predictor with Merchant Profiles, FICO® Open Banking Analytics and FICO® Transaction Scores.
• Attributing Reasons to Predictive Model Scores with Local Mutual Information – provides a breakthrough method for identifying explanations for machine learning model scores. Integrated into FICO® Falcon® Fraud Manager and FICO® Fraud Predictor with Merchant Profiles, this technology enables financial institutions to understand and explain the specific factors driving fraud alerts, enhancing transparency and regulatory compliance.
• Segmentation Using Zero Value Features in Machine Learning – addresses sparsity in production data where machine learning models treat missing data as segmentation to improve model accuracy for clients with missing data. Implemented in FICO® Platform, this innovation significantly improves model accuracy and reduces false positive rates by recognizing that zero values are important predictive information.
• System and Method for Linearizing Messages from Data Sources – optimizes the processing of data streams through a sequence of specialized tasks, including unbundling, normalization, and validation. This innovation powers FICO® Decision Management Platform Streaming, enabling real-time decision-making across millions of transactions.
• Rule Based Automation – enhances software verification outcomes through improved Behavior-Driven Development testing methodologies. This technology enables significant expansion of test coverage while minimizing maintenance requirements, ensuring the reliability of complex decision systems.
• Overly Optimistic Data Patterns and Learned Adversarial Latent Features – strengthens AI models against potential adversarial attacks by anticipating and mitigating vulnerabilities. The technology has been incorporated into FICO® Falcon® Fraud Manager and FICO® Fraud Predictor with Merchant Profiles to enhance security and resilience.
• Relationship Retrieval of a Partitioned List of Records – covers methods for efficiently identifying and retrieving relationships in partitioned records, supporting the capabilities of FICO® Identity Resolution Engine. Its technology enhances entity resolution and relationship discovery in large, complex datasets.

FICO's expanding patent portfolio reinforces its position at the forefront of Responsible AI development. These transformative technologies provide enterprises with the critical capabilities needed to deploy AI systems that deliver exceptional performance while meeting regulatory and ethical standards across multiple industries.

To learn more about FICO’s full patent list, visit: https://www.fico.com/en/patents

About FICO

FICO (NYSE: FICO) powers decisions that help people and businesses around the world prosper. Founded in 1956, the company is a pioneer in the use of predictive analytics and data science to improve operational decisions. FICO holds more than 200 US and foreign patents on technologies that increase profitability, customer satisfaction and growth for businesses in financial services, insurance, telecommunications, health care, retail and many other industries. Using FICO solutions, businesses in more than 80 countries do everything from protecting four billion payment cards from fraud, to improving financial inclusion, to increasing supply chain resiliency. The FICO® Score, used by 90% of top US lenders, is the standard measure of consumer credit risk in the US and has been made available in over 40 other countries, improving risk management, credit access and transparency.

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These patents tackle critical industry challenges, including Responsible AI, bias detection, fraud prevention, and data privacy—directly enhancing the capabilities of FICO's market-leading AI solutions.