Risk-averse compliance may be slow to adopt AI (IGNITES)

As more investment firms seek to utilize AI systems as part of firm strategies, compliance departments have seemingly been slow to implement necessary controls and oversight. While results of a recent benchmarking survey indicate a lack of urgency by compliance professionals to address risks associated with the use of AI, its small sample size may not show the complete picture. FrontLine’s Founder and President explains that compliance professionals tend to be risk-averse by nature and will not be early adopters of the technology. Recognizing the need for implementing policies and oversight, compliance would have cause to pushback on the use of AI within their firm. How it is used for compliance purposes would likely be limited to an AI feature of a current system already in place or where a regulation creates a specific need, adds Ms. Lynch. See IGNITES (subscription required), “AI is Prevalent. Good Governance of the Tools? Less So.”