Source: Fintech Global
The ongoing AI revolution is indisputably transforming risk management and customer identification processes (KYC), even though human input remains pivotal to these functions. Moody’s Analytics recently delved into how AI will transform risk management and know your customer (KYC) compliance.
Two main reasons underscore this human-AI necessity. Firstly, humans bear the legal responsibility for compliance with Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) laws; AI tools can’t shoulder these obligations. Secondly, human skill and ingenuity, in conjunction with varying AI types and AI compliance solutions, offer enormous promise to reconfigure how companies perceive risk and decide their business associates.
AI’s ability to improve risk management is already evident. Through machine learning, it can analyse enormous data volumes, detect patterns and spot anomalies, enabling swift action from compliance teams and consequently, risk reduction. In the not-so-distant future, supervised and unsupervised AI, along with reinforcement learning, are set to further bolster risk management structures…
Read full article: https://fintech.global/2023/07/31/deciphering-the-fusion-of-ai-and-human-expertise-in-risk-management-and-kyc-compliance/
