AI and advanced analytics in AML: From rule-based controls to intelligence-led capabilities

AI is a broad term covering multiple fields. For AML professionals, perhaps the most relevant subfield of AI is machine learning, which refers to the use of algorithms to continually improve a task, without the need for human intervention. Machine learning algorithms search for patterns within a given data set. Repeated recognition of patterns allows an algorithm to make ever more swift and accurate predictions. According to a survey of 296 UK-based AML professionals conducted by The Economist Intelligence Unit, the areas where respondents believe AI and advanced analytics can best be applied to combat money laundering are suspicious activity reporting (45%) and transaction monitoring (43%).