AI should be deployed as a specialist ‘team member’ that excels in gaining insight from the data hose being created by new regulation, Sybenetix’s R&D President, Dr Paul Young explained at the recent RegTech Futures summit in Amsterdam.
Speaking at a ‘fireside chat’ with financial institutions, regulators and other leading FinTech companies, Young discussed how to avoid AI overhype and disappointment based on his experience of building front and back-office AI systems.
“AI, such as machine learning, is incredibly effective for compliance when it enables people to understand the chain of causality”, said Young. “As an example, by applying behavioural analytics to a model of the investment-decision-making process you can instantly deconstruct potentially suspicious activity with much higher accuracy than traditional approaches. A supervised AI approach combined with expert domain knowledge is the key to supporting people, not replacing them. It’s like having a very specialised team member that can analyse the mountains of data you need to monitor and present it to you in the right context and right time so you can make smarter compliance and business decisions.”
The discussion also covered how advanced analytics and machine learning can be used with client data to meet compliance needs and create better engagement, and ultimately more profitability. This theme of holistic multi-use of regulatory data was revisited throughout the summit. And the fireside chat ended by exploring how the right use of AI, combined with regulatory data in cloud could be transformative for both institutions and regulators.