Artificial Intelligence: The Next Frontier in AML Compliance

Concerned about potential regulatory fines and skyrocketing costs, the world's largest banks are turning to artificial intelligence to improve their compliance with know-your-customer and anti-money laundering regulations. "The value proposition for AI solutions is highest for large banks with significant volumes, complexity, multiple lines of business and geographical reach as these banks are affected most by the current challenges and stand to benefit the most by adopting new and innovative solutions," write Arin Ray and Neil Katkov, analysts with Celent in a new research report entitled "Artificial Intelligence in KYC-AML: Enabling the Next Level of Operational Efficiency." The analysts predict that global tier-one and large regional banks will be early adopters of AI over the next three years. Ray and Katkov's conclusions match the findings of a survey of 424 executives from financial services and fintech companies released in March by Chicago-based law firm Baker McKenzie. The firm found that 29 percent are thinking about using AI in know-your customer and anti-money laundering monitoring.