Comply or say goodbye. The rise of AI powered compliance in payments 

Claire Huddleston, Sales and Marketing Director.  


As we witness the unprecedented influence of technology on the world around us, there is a promising innovation that is set to transform compliance in the finance sector – AI-powered compliance tools.  

According to Accenture, the market for these AI tools is predicted to soar to £41.1 billion by the end of 2026. As the need for enhanced risk management, fraud prevention, and regulatory compliance continues to rise, AI-powered compliance tools are gaining immense popularity. These tools have the capability to detect and prevent financial crimes such as money laundering, which is estimated to cause a loss of £800 billion to £2 trillion of global GDP each year. By reducing the risk of financial loss and reputational damage, AI-powered compliance tools can be the game-changer the finance industry needs. 

The payments industry, in particular, is poised to derive significant benefits from the adoption of AI-powered compliance tools. Fraud detection and prevention tools powered by AI have the potential to save the payments industry a whopping £22 billion by the end of 2023. By detecting fraudulent activities, monitoring transactions, and ensuring compliance with regulations such as PSD2 and GDPR, these tools can mitigate the risk of financial crime and bolster customer trust. 

The adoption of AI-powered compliance tools is poised to become mainstream for financial institutions as it is the solution that the industry needs to detect and prevent financial crimes, enhance customer experience, and secure the future of finance. The adoption of these tools is not a question of if, but when, as financial institutions strive to stay ahead of the game and drive innovation. 

AI is the Compliance Superhero of Finance 

There is no doubt about it – compliance has become increasingly crucial. However, with the help of AI, the industry is finding ways to automate and streamline compliance processes. By utilising AI, financial institutions can sift through vast amounts of data to identify potential compliance violations, reducing the risk of human error and increasing efficiency. 

AI is also being used for fraud detection. Algorithms can identify unusual patterns in transactions, alerting compliance officers to potentially fraudulent activities and helping to prevent financial crimes. The use of AI in financial services compliance has evolved significantly in recent years, moving beyond traditional rule-based systems to more sophisticated machine learning models that can analyse vast amounts of data in real-time. This has enabled financial institutions to stay ahead of the maze of compliance challenges and reduce the risk of regulatory violations. 

Looking to the future, we can expect even more advanced AI-powered compliance tools that can adapt and learn from new data. As regulations continue to evolve, financial institutions must leverage AI to remain compliant while also reducing the cost and time involved in the compliance process. Through the use of AI, financial institutions can operate more efficiently and effectively, ensuring that they remain competitive in an ever-changing landscape. 

AI-mpactful Compliance 

The financial services industry has always been heavily regulated, with compliance requirements constantly evolving. However, with the rise of AI, compliance processes have become more efficient, accurate, and cost-effective. AI is transforming the compliance space with its ability to organise vast sets of information and documents. This capability is particularly useful for regulatory compliance, as it allows financial institutions to quickly identify and track specific transactions or patterns of behaviour. 

AI-powered compliance tools provide financial institutions with greater flexibility in adapting to changing compliance requirements. As a result, the rapid advancements in AI will likely evolve the roles of compliance officers to a more “supervisory” and “final decision” mode. While AI in regulatory compliance is becoming a baseline standard, relying purely on AI may open up more compliance risk and regulatory fines. Therefore, it is essential to continuously work on data analysis and cleansing to ensure that results given to clients have undergone severe quality testing. 

Despite the benefits of AI in compliance, there is a danger of giving AI full control and forego human oversight. This danger is being addressed by regulators worldwide, ensuring that AIs used are non-biased and transparent. The rapid advancements in AI have significantly improved compliance by improving both the quality and quantity of examinations made. Machines can do certain things better than humans, such as ID verification, assess things humans cannot, like MRZ (Machine Readable Zone), and monitor transactions and detect potential violations in real-time. 

The adoption of AI-powered compliance tools is becoming increasingly crucial in the financial industry. These tools offer numerous benefits and have the potential to reduce compliance costs by up to 60%, freeing up resources for other critical business functions. As financial crime continues to rise, AI-powered compliance tools can help institutions detect and prevent fraudulent activities, thereby reducing the risk of financial loss and reputational damage. The payments industry, in particular, stands to gain significantly from these tools, with the potential to save billions of dollars in the fight against fraud 

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