FinTech firms are leading the way in the adoption of artificial intelligence (AI) for risk management and compliance, according to a new study conducted by Moody’s Analytics.
18 per cent of respondents from this sector indicated that they are already actively using AI, which is significantly higher than the average of 9 per cent across all surveyed sectors. The study highlights the importance of AI for financial services, with FinTech firms adopting it at a faster rate than other sectors due to the need for speed, agility, and accuracy in processing vast amounts of data.
The study, titled ‘Navigating the AI Landscape: Insights from Compliance and Risk Management Leaders’, surveyed more than 550 senior compliance and risk management professionals from 67 countries, and provides insights into the current state of AI adoption in various sectors.
One key finding is that banking is closely following FinTech in AI adoption with 12 per cent, while
the insurance, asset management, and wealth management sectors are lagging behind, with only 3 per cent of respondents from these sectors actively using AI. However, 11 per cent are piloting AI initiatives, suggesting that AI adoption is likely to accelerate in these sectors in the near future.
The study also found that there is a general lack of understanding of the potential applications of artificial intelligence in risk and compliance frameworks. Only 26 per cent of respondents rated their understanding of AI technologies as high, while a significant proportion 29 per cent indicated that they have a low or very low understanding. This suggests that many companies still need to build knowledge and capacity before they can fully benefit from the use of AI.
Commenting on the findings of the study, Keith Berry, general manager of KYC Solutions at Moody’s Analytics, noted that FinTech companies are making progressive use of AI to enhance risk management and compliance processes.
Berry went on to emphasize that across all sectors, there is a great deal of enthusiasm for using AI to improve productivity, particularly in data screening and staff performance. He stated “The compliance professionals who joined our research clearly expect AI to be transformative within their profession, with the fintech sector presently at the vanguard of this change.”
The study’s global reach, covering diverse perspectives from around the world, highlights the different levels of preparedness and implementation of artificial intelligence across industries. This indicates a need for greater awareness and understanding of the technology’s capabilities in risk and compliance.