AI has become a strategic priority for firms, largely driven by the transformative opportunities it unlocks and the compelling benefits it presents in terms of innovation, increased operational efficiency, optimisation and more effective risk management. A recent survey of 600 professionals within fraud management, risk and compliance, highlighted that 74% of firms are currently using AI for financial-crime and fraud detection, with 94% using AI and machine learning techniques to detect risk
However, AI has also introduced a set of new challenges for firms, in particular the requirement to understand and interpret the decisions of an AI system or model. While rule-based systems are transparent, complex AI models like random forests and clustering often aren't. This lack of transparency poses a challenge to firms, where understanding how decisions are made is crucial to ensure FCA expectations are met around safety, transparency, fairness, accountability, and contestability, alongside the more onerous requirements of the recently published EU AI Act.
The webinar delves into the multifaceted impact of AI on financial crime and fraud prevention. We will discuss current AI regulation and guidance in Europe and the UK, and the practical implications for firms and AI solution providers. Furthermore, we will explore the challenges of ‘explainability’ and conformity assessments in AI systems and models, presenting potential approaches to achieving regulatory compliance, alongside best practices for implementing robust AI governance to ensure transparency, accountability, and ethical use.
Date: Tuesday, 11 September 2024