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

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.
 

80%


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

     - KPMG's survey of 120+ risk professionals        

92%


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

     - KPMG's recent Guardians of Trust report     

20%


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.