Technology innovations such as AI-powered tools capable of analyzing enormous amounts of data present both risk and opportunities for bank compliance professionals.
In a cover story for ABA Risk and Compliance Magazine, Alliance for Innovation (AIR) CEO and Co-founder Jo Ann Barefoot discusses how the advent of generative AI and other digital technologies will likely result in a markedly different environment for compliance professionals.
Tools like ChatGPT have stoked concerns that bad actors could use new AI technology to commit fraud or spread misinformation. At the same time, the technological renaissance will mean smarter data tools and digital-native systems that reduce costs and improve efficiency in the public and private sectors, according to Barefoot.
“By as early as 2030, regulatory monitoring for financial institutions of all sizes will likely rest on a digital-native architecture, with the capability to process data more quickly, analyze it more effectively, and more readily and accurately identify red flags,” Barefoot writes.
“These compliance systems will require new skill sets but also have the potential to drastically improve results,” she continues. “Changes in the industry will likely also be accompanied by innovation among the regulators themselves to track industry activity more effectively by supplanting their analog-based, legacy infrastructure with a more digital-native technology platform.”
Read the full article here.
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