Efficient Banking

Excerpts from financial times "Bank chiefs relish prospect of AI boost to productivity."

https://www.ft.com/content/ebda68fb-dc20-4949-94f1-12378c4d68d3

... disputes the idea that financial services’ regulated nature is a “blocker” on AI use — insisting, instead, that it can help fulfil regulatory obligations, especially around financial crime.

... banks are in the “first inning” of their journeys, but that large language model capacity is grow6y6ing at “a rate of 10 [times] a year”. That means big potential gains for those who choose to move quickly.

...most impact now is around “risk, compliance and enterprise” — with enterprise being a catch-all phrase for HR, legal and other business support functions.

Peter Dugas, who heads regulatory intelligence at consultancy group Capco, is “most excited about being able to [use AI] to analyse thousands of changes to laws and regulations on a global basis”.

He describes how AI could be used to parse rule books, legislation, regulatory guidance and enforcement, and identify what is relevant for an institution.

Capco has already built a tool that can identify about 75 per cent of the records a human would. It has been in conversations with clients about deploying the model for use in regulatory change processes.