AI in Compliance and Financial Crime Prevention

The potential of artificial intelligence (AI) in compliance software is being explored as a solution to combat insider trading and financial crimes. Compliance companies are pitching generative AI to assist financial institutions in analyzing vast amounts of communication data for signs of wrongdoing. Traditional methods were labor-intensive and often missed coded language used by traders, such as 'throwing chum in the water' as a reference to spoofing. AI tools could streamline the monitoring process and possibly reduce the need for extensive compliance staffing, offering more efficiency in identifying suspicious activities.