Reported by FinTech Global

Ever since its launch in November 2022, Generative AI has been the topic of discussion on everyone’s lips when it comes to discussing transformational technology. In the area of KYC, could we expect Generative AI to have significant long term impacts?

In the view of Ted Datta, senior director, head of financial crime compliance practice, Europe, Africa & Americas at Moody’s, Gen AI can make a significant impact on KYC processes, but only when it is trained on trusted and valuable data.

He added, “One area where this applies aptly is in the creation of riskographies i.e.  risk-relevant databases of financial crime information. Using Generative AI, Moody’s recently created ten times the number of new riskographies for a client in only 38 days, allowing the client to review each risk alert in significantly less time.”

While GenAI led to the quick development of these riskographies, Datta exclaims, the increased efficency is counterproductive if the information it presents doesn’t paint an accurate picture.

He continued, “Every model and prompt integrated into compliance products must have a complete governance framework, not only to assess accuracy but to ensure that industry-standard observability and explainability of the models are maintained.

“The prime activity for many compliance professionals is to understand who their organisation is doing business with, so any enhancements to KYC processes from generative AI need to have the highest accuracy, something that’s only possible with Generative AI relying on curated data sets.”

Read full report: https://fintech.global/globalregtechsummitusa/how-is-generative-ai-impacting-the-kyc-process-2/