AI I Compliance in control: Financial services regulatory challenges
AI I Compliance in control: Financial services regulatory challenges

AI / Compliance in control

Financial services regulatory challenges

The adoption of artificial intelligence (AI) systems and advanced analytics is accelerating across financial institutions, creating evolving regulatory and compliance challenges. AI presents both existing and uniquely applied regulatory and compliance challenges that must be addressed in the governance and controls upfront and ongoing.


of risk professionals were not confident about the governance in place around AI

     - KPMG's survey of 120+ risk professionals        


of companies question the trustworthiness of data, analytics...are worried about the impact on reputation

     - KPMG's recent Guardians of Trust report     


of companies have a well-defined enterprise-wide strategy to automate compliance

     - KPMG's Compliance Automation Survey 2018     

In our latest report, AI | Compliance in control: Financial services regulatory challenges, we analyze the business drivers and actions organizations can take based on areas already subject to heightened regulatory expectations. These areas include:

  1. Divergent regulation

  2. Risk governance and controls

  3. Data privacy

  4. Compliance processes

  5. Credit management

  6. Cybersecurity

  7. Ethics and conduct

  8. Consumer protections

  9. Financial crimes

  10. Capital and liquidity




To evaluate the unique risks posed by advanced analytics and AI solutions, regulators are currently looking to existing laws and regulations to define the parameters, or set the “guardrails,” by which they will evaluate system outputs. In turn, this places heightened regulatory focus on those AI solutions that touch these highlighted areas.