The Association for Financial Markets in Europe (AFME) and PricewaterhouseCoopers International Limited (PwC) have today published a new report entitled “Artificial Intelligence: Challenges and Opportunities for Compliance”.
For financial markets, AI offers opportunities in multiple areas from Front to Back Office. The adoption of AI, however, presents compliance officers with two main challenges. Firstly, they must understand how AI is being used – particularly in the Front Office - to provide effective advice and challenge to the business on implementation. Secondly, they need to explore how AI can be utilised within the Compliance function to improve efficiency.
To address these challenges, this paper sets out how firms’ adoption of AI, within both the first and second lines, is impacting the Compliance function and how Compliance itself can adopt AI. It examines the benefits, risks, and regulatory issues associated with AI in compliance, and offers recommendations for Compliance teams to consider as they incorporate AI into their operations.