Since ChatGPT became a household word, Artificial Intelligence has created mixed emotions, with many touting the positive potential impact while others fear more negative consequences. Regardless of whether AI overlords eventually rule over all humanity or not, it’s important to separate the myths from reality and discuss practical applications that are available today to positively impact the way banks and other financial institutions (FIs) fight financial crime. This paper unpacks different types of AI and how they are being used for FCC, their potential impact, and how to bring that impact back to your FI.
Key Takeaways
- Whether AI will replace us or not, it’s best to err on the side of embracing AI before it’s too late, starting with recognizing ChatGPT-type technology is one of many different approaches for AI
- AI need not be scary with very practical, useful, safe options already at work in many financial institutions (FIs), having successfully navigated Model Risk Management (MRM) and other concerns
- Use cases like Sanctions Screening Alert Review and Adverse Media Monitoring are great starting points for AI to help mitigate risk, solve talent challenges, increase workforce capacity, save money, enhance employee and customer experience, and improve compliance posture
- Similar to cloud infrastructure, AI is increasingly becoming a technology to “hire” rather than build and support internally, accelerating value generation by months, if not years