A new Moody’s Analytics study reveals that fintech is the leading sector for AI adoption and readiness in risk and compliance.
Moody’s Analytics report, Navigating the AI landscape: insights from compliance and risk management leaders, included a survey of more than 550 senior compliance and risk management professionals from 67 countries to assess their perspectives on and uses of AI. A key component of the study compared implementation and piloting of AI within different sectors to determine the extent of usage now, and readiness to adopt in the near future.
According to the study, 18 percent of fintech respondents are currently actively using AI, doubling the percentage of respondents across all surveyed sectors (9 percent).
Sectors like insurance, asset management, and wealth management have been slower on AI adoption – only 3 percent of respondents in those areas reported actively using AI currently, though another 11 percent are piloting it. Banking sits just behind fintech, with 12 percent of respondents actively employing AI.
These insights sit within the broader findings of the research, with many surveyed respondents not being fully aware of where AI’s application could fit within a risk and compliance framework. Only one-quarter (26 percent) of respondents rated their understanding of AI technologies as “high” or “very high” whereas nearly a third (29 percent) defined their knowledge as “low” or “very low”.
Keith Berry, General Manager, KYC Solutions at Moody’s Analytics, explained: “While fintechs are demonstrating higher rates of usage and piloting of AI for risk management and compliance processes, the banking sector is not far behind. The broader trend in our study shows that the appetite is there across all sectors to leverage AI technologies for productivity gains, particularly targeting data screening and augmenting staff performance. The compliance professionals who joined our research clearly expect AI to be transformative within their profession, with the fintech sector presently at the vanguard of this change.“