Advertisement

http://insurancethoughtleadership.com/wp-content/uploads/2014/04/bg-h1.png

Facebooktwitterredditpinterestlinkedinmail

June 26, 2020

Stop Being Scared of Artificial Intelligence

Summary:

For financial service professionals, particularly those involved with fighting crime, AI can have a tremendous impact and practical application.

Photo Courtesy of Pixabay

In a world where messaging tends to overcomplicate things, too many acronyms and too many buzzwords all work against what should be the primary objective: clearly illustrating value. I’ve found this to be true when it comes to artificial intelligence or, AI.

Generally speaking, the word “artificial” doesn’t call to mind a positive image, does it? Listed meanings include “insincere or affected” and “made by humans as opposed to happening naturally.” 

Artificial intelligence is, in fact, created by humans. The term was coined by John McCarthy, Stanford computer and cognitive scientist, way back in 1955.

AI is not intended to simply be a digital worker, certainly not within financial services and fighting financial crime. Yes, AI can automate various functions. We’re all familiar with the concept of “bots” and virtual assistants. However, those are rudimentary examples of robotic process automation. True AI is human-led and a continuous, instantaneous learning process that drives tangible value. AI is not merely a play to cut costs or replace human capital. Rather, AI enhances the bottom line by keeping compliance staff costs flat in the immediate term and enables our human experts to more appropriately manage their time, by focusing talent on investigations that matter the most.

One of the most valuable aspects of AI, in the context of anti-money laundering and compliance, is the speed by which it can be deployed. We’re talking about time to market and time to value in a matter of weeks. Not months, not multiple quarters — simply weeks. But I don’t mean a generic, black box concept. I’m referring to a highly precise, tailored AI solution that has extensive proof points and, more importantly, far-reaching global regulatory approval.

AI shouldn’t simply be an extension of legacy rules-based routines, nor a way to further automate the process of scoring or risk-weighted alert suppression. That simply dilutes the true value of AI and does not maximize the cost and efficiency benefits.

See also: 3 Steps to Demystify Artificial Intelligence  

The cost of compliance continues to grow at a staggering pace, particularly for financial institutions and insurance companies. Equally of concern, the impact of fines for non-compliance has also skyrocketed in the last decade, to the tune of $8.4 billion last year across North America alone.

What if you could literally solve every single name screen, sanction and transaction alert? What if you could achieve this without sacrificing any aspect of control and security? What if you could increase the throughput, efficiency and accuracy of your compliance operations without adding a single dollar of staff expense to your budget?

Artificial intelligence isn’t scary. It isn’t a black box. And it isn’t the futuristic world of tomorrow. It is the here and now, and it’s battle-tested.

description_here

About the Author

Jim Logan has nearly three decades of experience in financial services and technology, having held leadership positions within JPMorgan Chase and Deutsche Bank, in transaction banking. He most recently served as America’s region head of SunTec Global Business Systems.

follow @ITLupdates for more stories like this

Email Jim

+ READ MORE about this author ...

Like this Post? Share it!

Add a Comment or Ask a Question

blog comments powered by Disqus
Do NOT follow this link or you will be banned from the site!