Whether they’re leading change or resisting it, compliance and risk professionals — and everybody else, for that matter — simply can’t ignore the impact of AI. Keith Berry of Moody’s Analytics explains his organization’s recent survey findings but cautions that strong foundations are necessary to avoid AI hallucinations.
As chatter grows among business leaders and government officials imagining both the possibilities and risks associated with AI, the compliance industry is ripe for transformation. At Moody’s Analytics, we’ve deployed AI since the late 2000s in our Know Your Customer (KYC) screening process to reduce false positives, resulting in up to 80% of Level 1 investigation and triage happening instantly and accurately. Now, our recent study, which surveyed more than 550 senior compliance and risk management professionals globally, found that 83% of respondents expected widespread adoption of AI in risk and compliance within the next five years, and 82% believe AI will deliver significant advantages to the industry.
Despite this, only one-quarter (26%) report having high or very high knowledge of the relevance of AI to risk management and compliance. While just one in three organizations are actively using or trialing AI in compliance and risk management with data analysis and…
