Recent advancements in the field of artificial intelligence (AI) have ushered in a new era of possibilities, expanding the potential for this transformative technology to be applied in various domains. In recent times, breakthroughs in AI research and development have opened doors to innovative applications, revolutionizing industries such as healthcare, transportation, and finance.
On Wednesday, June 21, Google Cloud said it is launching an AI-powered tool developed to help banks and its other clients fight money laundering, The Wall Street Journal (WSJ) reported.
Notably, Alphabet’s (NASDAQ: GOOGL) cloud division wants to equip banks with a sophisticated AI product that will allow them to better calibrate systems that are meant to identify potentially risky transactions and customer activities. In turn, this will allow banks to improve their compliance with regulations that require them to detect and report suspicious customer behavior.
The solution, called ‘Anti Money Laundering AI,’ is already being used by several prominent banks, including HSBC, Brazil-based Banco Bradesco, and Lunar, a digital bank headquartered in Denmark.
What improvements does the tool bring?
The rollout of Google Cloud’s new product comes in the midst of an AI frenzy. The unprecedented success of OpenAI’s bot, ChatGPT, late last year has left tech companies racing to build and commercialize their own AI solutions, as well as integrate them into their operations.
One of the sectors that could notably benefit from the ongoing AI boom is finance, which has been dependent on traditional forms of AI to help them go through billions of transactions each day.
With the tools they currently use, banks and financial institutions are required to manually calibrate them to detect suspicious activity. Improper calibration frequently leads to inaccurate inflation of the number of such behaviors, which often results in the generation of poor-quality leads.
In contrast, Google’s Anti Money Laundering AI does not allow users to manually input rules. Instead, it lets them customize the tool using their own risk indicators and typologies, according to the WSJ report.
Through an AI-oriented approach, the tool managed to slash the number of alerts HSBC received by 60%, while the number of “true positives” increased by up to four times, Google said.