How AI-powered compliance could fight financial crime
The financial services sector is undergoing a profound transformation, driven by the rapid advancements and accessibility of artificial intelligence (AI).
No longer an experimental concept for the future, AI is being deployed at scale today, fundamentally changing how every financial institution operates globally.
The rise of generative AI, in particular, has spurred adoption, with around three-quarters of banks already utilising AI and another 10 per cent planning to use AI over the next three years.
High-profile examples include major UK banks, such as Lloyds Banking Group, which has appointed Heads of Responsible AI and collaborates directly with leading AI developers like OpenAI.
The potential benefits are compelling. With proper implementation, AI promises to lower the cost-to-serve while significantly enhancing customer experiences.
Some of the main features that AI is going to help streamline in the banking industry and compete at a higher and faster rate include:
They can analyse vast amounts of information across multiple formats quickly and precisely.
This power is especially evident in critical areas like fraud and financial crime detection, where AI can uncover previously hidden patterns to thwart illicit activities.
Anomaly detection can identify unusual patterns indicating fraudulent payments linked to financial crime or cyber threats.
AI can also help mitigate the threat of money laundering in detecting suspicious transactions more quickly and accurately in retail and commercial banking settings.
More banks and financial services are using two-factor authentication, with the added use of photo ID.
Image Recognition is going to become more important as deep fakes and image manipulation become more popular with criminals looking to circumvent this.
Cyber attacks will be detected quickly as network traffic is monitored more closely and in detail, and irregularities will be detected and prevented in real time.
In this complex landscape, ensuring robust staff compliance is more critical than ever.
Skillcast, an AIM-listed GRC content and software provider, offers a timely innovation: Aida, your AI Digital Compliance Assistant.
Unlike general-purpose AI assistants, Aida is tailored for the specific demands of compliance. It focuses solely on delivering information pertinent to the organisation’s compliance policies and trusted regulatory sources like the FCA Handbook.
Aida revolutionises how employees interact with compliance information, moving beyond traditional methods.
Instead of requiring staff to sift through dense policy documents or lengthy e-learning modules, Aida allows them to ask specific questions in natural language and immediately receive relevant, easy-to-understand answers along with links to the relevant policy, course or section of the FCA handbook. This real-time assistance can facilitate higher employee engagement with compliance while reducing the load on compliance teams by answering routine questions.
Perhaps most importantly, Aida doesn’t mine general information on the Internet. When it can’t find a reliable answer from its pre-configured sources, it says, “I’m sorry, I can’t answer that.” This avoids the dangerous hallucinations and other risks associated with open-domain AI.
As firms look to improve their compliance readiness and reduce the burden on stretched teams, AI tools like Aida offer efficiency and assurance. Every interaction with Aida is logged, anonymised, and reviewable, providing compliance teams with insight into the challenges their staff are facing.
Firms embracing AI automation in staff compliance aren’t just cutting costs; they are adopting the same data-driven approach to compliance as the regulators.
Visit the Skillcast website and book your personalised demo today.