Google Cloud has rolled out AI service revolutionizing how financial institutions tackle money laundering detection.
In an unprecedented move, Google Cloud has rolled out its AI-based service dubbed "Anti Money Laundering AI" (AMLAI) following a successful test run with the London-headquartered financial entity, HSBC.
The AI solution AMLAI employs machine learning algorithms for tasks such as creating risk evaluations, supervising transactions, and interpreting data.
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A recent publication from Google Cloud explains the efficacy of this innovative technology, stating:
AI transaction monitoring replaces the manually defined, rules-based approach and harnesses the power of financial institutions’ own data to train advanced machine learning (ML) models to provide a comprehensive view of risk scores.
In real-world scenarios, Google Cloud's primary collaborator, HSBC, reportedly experienced an upsurge of positive alerts, doubling or even quadrupling in some cases. Meanwhile, false positives saw a significant decline of approximately 60%.
The pricing for this novel service is based on a few factors. It's dependent on the daily customer count benefiting from the AML and risk evaluation systems. The number of customers forming the training data set used to initialize the model also contributes to the cost.
The launch of AMLAI marks an important milestone for Google and Google Cloud in the realm of financial technology. Although the spotlight is currently on generative AI products, like Google's Bard chatbot, Google has been subtly consolidating its role as a fintech innovator and supplier of banking services.
Google's deepening commitment to the AML sector signals a promising future for this rapidly expanding industry. Data from BlueWeave Consulting suggests the global AML market, which was approximately worth $3 billion in 2022, is anticipated to escalate to nearly $8 billion by the close of this decade.
Several elements are driving this anticipated growth, including the surge in non-traditional payment methods, a continuously evolving regulatory framework, and an upward trend in global money laundering cases.
At the beginning of June, Google Cloud introduces courses to foster the generation of GPT-like AI systems.
