The Promise and Perils of AI in Compliance

"It is no longer sufficient to do sampling for auditing, you have to boil the ocean," according to Joseph Lodato, global head of compliance technology and surveillance at Guggenheim Partners, in his keynote at the RegTech Summit US. Organizations are now required to trawl through the plethora of emails they send and receive each day to ensure they comply with regulations during an SEC examination. Making technology all the more important, a machine learning solution that flags suspicious emails would be advantageous in such a situation. As the remit for compliance officers continues to expand, they are increasingly looking at technology to augment their capabilities. Artificial intelligence powered by machine learning and big data has the potential to completely revolutionize the compliance world. Machine learning solutions are already widely used in front office activities such as dynamic portfolio rebalancing and high-frequency trading.