Moody’s Analytics Report Highlights Fintech’s Leading Role in AI Adoption for Risk and Compliance

In the realm of artificial intelligence (AI) adoption for risk and compliance, fintech leads the way, outpacing sectors like insurance, asset, and wealth management, as per a report by Moody’s Analytics. The study reveals that 18% of fintech respondents actively use AI, double the 9% across all surveyed sectors. The banking sector follows closely with 12% actively employing AI. Conversely, only 3% of insurance, asset management, and wealth management players are currently using AI, but another 11% are piloting it. The study surveyed over 550 senior compliance and risk management professionals from 67 countries.

While fintechs show higher AI usage, the banking sector is not far behind. There is a collective interest across sectors in leveraging AI technologies for productivity gains, particularly in data screening and staff performance augmentation. The report notes that early adopters of AI report positive impacts on risk and compliance.

Overall, 30% of respondents are actively using or conducting AI trials, while 49% are considering adoption. The study highlights challenges such as poor internal data quality, lack of clarity around regulation, and a knowledge gap. Despite 79% of professionals deeming new AI-related legislation crucial, there’s a lack of awareness of existing regulations. The study suggests that for AI to realize its transformative potential, compliance teams need the right expertise and data.