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:
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.