As regulatory environments become more complex and product development cycles accelerate, financial industry leaders recognize the growing role of artificial intelligence (AI) in navigating these challenges.
Executives from companies like Crosswise Risk Management suggest that AI has become essential in compliance due to the increasing complexity of regulatory change management. Alexander Statnikov, co-founder and CEO of Crosswise Risk Management, emphasized that in 2025, AI is integral to maintaining compliance, especially with the frequent changes in regulations across different jurisdictions.
The faster pace of business product development is another key factor. “Product cycles have shortened from two years to just a few weeks, requiring quicker shipments and greater efficiency,” Statnikov explained. The integration of banking-as-a-service models and third-party risk management also adds to the complexity, making AI crucial for effective compliance.
At JPMorgan Chase, AI is used to improve operational efficiency, reduce paperwork, and enhance compliance processes. Terah Lyons, the bank’s managing director and global head of AI and data policy, highlighted that AI’s use in fraud detection has significantly reduced false positives—transactions wrongly flagged as fraudulent—resulting in fewer disruptions for customers.
Beyond internal efficiency, AI also helps facilitate regulatory processes. JPMorgan collaborates with regulators to manage large volumes of paperwork, improving overall risk management and compliance. Lyons noted that AI tools in the public sector support banks and strengthen global financial systems.
In the compliance space, AI is helping reduce inefficiencies, particularly with false positives. When human workers mistakenly flag non-compliant cases, valuable time is lost. AI helps identify these errors, allowing employees to focus on truly problematic cases. Anthony Soohoo, CEO of MoneyGram, mentioned that AI has made compliance processes more effective and efficient, leading to improved job satisfaction as employees spend less time on routine tasks and more on critical issues.
To build trust in AI, JPMorgan adopts a gradual approach, starting with smaller internal projects that demonstrate AI’s value. According to Lyons, this method has helped increase organizational acceptance and proved the technology’s effectiveness.
Soohoo also pointed out that the compliance process remains inefficient, and AI’s real-time monitoring capabilities help address this challenge. “AI unlocks the ability to track and review every part of the compliance process in real-time,” he explained.
Looking forward, Soohoo emphasized that organizations need to adopt AI and automation strategies to remain competitive. He compared the transition to AI to the earlier shifts brought by the internet and personal computers, noting that embracing these technological changes is crucial for long-term success.
Lyons concluded that effective risk management, powered by AI, will soon become a key competitive advantage for firms, ultimately helping to build customer trust.
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