Executives in the financial industry emphasize the necessity of artificial intelligence (AI) for navigating today’s complicated regulatory landscape and rapidly evolving product development. Alexander Statnikov, CEO of Crosswise Risk Management, states that by 2025, AI will be essential for compliance due to increased regulatory challenges, particularly with more state involvement. Product cycles are also accelerating, shifting from two years to mere weeks in some cases, making AI crucial in managing compliance within the complexity of banking services and third-party risk. At JPMorgan Chase, AI improves compliance and risk management efficiencies, significantly reducing unnecessary paperwork for both employees and regulators. Terah Lyons, the bank's global head of AI and data policy, highlighted AI's role in enhancing fraud detection by lowering false positives, which improves customer experiences and strengthens security measures. Moreover, JPMorgan utilizes AI to streamline external regulatory processes, aiding both the bank and regulators, leading to improved risk management. Lyons points out that these tools contribute to a more stable global financial system by supporting banks in external risk management. However, issues like false positives in compliance work can waste time, as employees may mistakenly investigate compliant cases.

AI helps mitigate this by allowing human reviewers to concentrate on genuinely problematic cases. As Anthony Soohoo, CEO of Moneygram, explains, this not only boosts compliance efficiency but also enhances employee satisfaction, as staff engage more with AI rather than tedious tasks. To build trust in AI, JPMorgan adopts a pragmatic approach, piloting smaller initiatives to demonstrate value and performance, which fosters acceptance. Soohoo criticizes the current inefficiency of compliance and stresses the importance of real-time monitoring in the process, advocating for organizations to embrace AI solutions promptly. Soohoo likens the current shift toward AI to the advent of the internet, underscoring that organizations must adapt to technology rather than resist it. Lyons adds that mastering AI deployment will become a competitive edge in risk management, with customer trust being central to organizational success.