Artificial Intelligence News & Updates: Financial Firms Uses AI To Handle Compliance Overload

Artificial intelligence (AI) is one of the most used technology today. You can find it in schools, offices, mobile applications and even financial firms. According to reports, banks will be using AI to handle compliance overload.

AI For Compliance Overload

According to the Wall Street Journal banks have added tens of thousands of compliance officers but are now turning to AI to handle the ever-changing regulatory landscape. AI is preferred for its efficiency and speed in weeding out false-positive results, cutting costs, and in maximizing the workers' time and company resources.

The company created a natural language processing system to convert the legalese of regulations into a set of rules that is computer-understandable. According to Mallinath Sengupta, chief executive of NextAngles, a company that uses AI to help banks handle compliance monitoring, throwing people to that problem is not sustainable.

"There are millions of transactions going through, which ones are compliant, which are not? If you have to figure that out on an individual basis, that's an onerous task," he said. However, AI can analyze the transactions in a shorter span of time.

Based on a survey, 49 percent of 424 senior executives from financial services expected that their organization will use AI for risk mitigation in the next three years. Meanwhile, 29 percent expected that AI would be used in know-your-customer and anti-money laundering monitoring and 26 percent expected AI to help them with regulation, risk and compliance.

AI May Result To Job Displacement

With AI slowly paving its way into financial firms some banking occupations are at risk. According to the Financial Brand, some jobs are susceptible to AI or computerization, including bank teller, loan officer, mortgage broker, insurance claims and policy processing clerk, insurance underwriters, bookkeeping, accounting, auditing clerks and more.

What is your stand with AI taking the occupation in the financial firms? Will this be a concern? Is AI a threat to the employees in the financial firms? Share your thoughts in the comment section below.