Credit: growth.ai/Adobe Stock Why High-Quality AI Data Is Crucial to Fighting Financial Crime
Integrating AI is more than just picking an AI solution. Counsels need to ensure they take a strategic approach to integrating this technology and understand the business and financial crime risk exposures they may face.
August 22, 2024 at 10:12 AM
9 minute read
What You Need to Know
- As the debate around AI responsibility rapidly evolves, financial institutions must now consider AI implications and effectiveness within their firm's business strategies.
- The increasing prominence of AI also means that firms may leave themselves exposed to unexpected risks if they do not carefully consider the quality of the data that fuels the AI system.
- AI governance, ongoing monitoring, testing and investment in education and resources are all critical for firms to ensure they understand AI and data issues fully.
The fight against financial crime is becoming increasingly complex. As the debate around AI responsibility rapidly evolves, financial institutions must now consider AI implications and effectiveness within their firm's business strategies, especially in compliance functions, where AI has already begun to become broadly embedded. The increasing prominence of AI also means that firms may leave themselves exposed to unexpected risks if they do not carefully consider the quality of the data that fuels the AI system.
Findings from Kroll's 2023 Fraud and Financial Crime Report indicate that global enforcement actions are expected to rise. Firms must be aware that regulators are increasing scrutiny of the use of technology as part of firms' AML compliance programs.
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