Compliance redefined: Using GenAI to navigate a complex regulatory landscape with reduced risks and costs

Irene Liu and Michael Wongsosaputro
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Irene Liu: Managing Director, Singapore
Michael Wongsosaputro: Consultant, Singapore

Journal of Digital Banking, 2024, vol. 8, issue 4, 313-322

Abstract: In recent times, generative artificial intelligence (GenAI) has emerged as the next frontier in artificial intelligence (AI) capabilities. With its ability to create original content from training data sets, it is expected to significantly influence the way we work. A number of banks have already started experimenting with GenAI on use cases ranging from content creation and personalised customer marketing to fraud and financial crime detection. Yet as rapidly as technologies such as GenAI have arisen, so have the regulatory demands faced by the financial services sector, which have become more complex and voluminous in the face of increasing types of risks. Financial institutions are seeking ways to achieve efficiency gains from their reporting processes to combat such risks and the rising costs of reporting. This paper proposes that GenAI is a potential answer to financial institutions’ quandary. The recommendations proposed support the notion that GenAI is able to help financial institutions reap cost savings and resolve some of the common challenges of regulatory reporting, such as data quality. Furthermore, GenAI could also transform regulatory reporting as we know it, through its visualisation capabilities and real-time monitoring. The paper concludes with a view of industry initiatives on GenAI and regulatory reporting and considerations for moving the landscape forward.

Keywords: Generative AI; GenAI; regulatory reporting; compliance; RegTech; technology; artificial intelligence; data and analytics; data quality (search for similar items in EconPapers)
JEL-codes: E5 G2 (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (1)

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