Google launched an artificial intelligence model that combats money laundering for banks. The Google Cloud website says it “detects suspicious, potential money laundering activity faster and more precisely with AI.” As a result, it improves risk detection and reduces operational costs for financial institutions.
Artificial intelligence continues to improve our lives in ways we don’t expect. Google’s new AI technology could make banking easier and safer worldwide. Only a few companies use its model, but we would likely see more banks use it. Your favorite bank may adopt it, too,
You should know how the search engine firm may change how it works. This article will discuss Google’s latest anti-money laundering AI model for banks. Later, I will cover other ways artificial intelligence improves banking.
How does Google Banking AI work?
The Wall Street Journal posted a YouTube video about this new technology. WSJ Audio Producer Julie Chang and reporter Dylan Tokar shared more details about it.
The latter said Google Cloud created this money laundering program. The company knows others provide AI-powered banking solutions. However, it’s allegedly special because of its “manually-defined rules.”
The search engine firm said other platforms rely on human parameters that become too complicated. Tokar said people create rules for specific purposes, triggering several false alerts.
In response, people must investigate these alerts, wasting time and effort on false positives. As a result, a bank’s anti-money laundering program becomes inefficient.
Google Cloud will allegedly reduce human input to streamline this process by determining alerts that require investigation. Consequently, its AI model is reportedly stronger than others.
The WSJ reporter said this Google AI trains on three years of bank data to suit a financial institution’s needs. The Google Cloud website says it will check the following information:
- Transaction details
- Account information
- Customer relationships
- Company data
- Know Your Customer (KYC) info
These will help the artificial intelligence spot “patterns, instances, groups, anomalies, and networks for retail and commercial banks.” Meanwhile, the reporter said the program has limited clients at the time of writing.
You may also like: Automate Everything With AutoGPT AI
Tokar mentioned that its largest client, HSBC, allegedly experienced a 60% reduction in false positives. More importantly, it spotted two to four times more true positives.
In other words, the Ai model improved at avoiding false alarms and detecting real threats. However, Tokar noted a few risks with this artificial intelligence model.
He said it must consider how regulators would respond to banks using artificial intelligence to screen customers. Also, it must determine who is accountable if these AI models fail.
Other ways banks use AI
Banks had been using artificial intelligence before Google launched its new tool. Mobile app development firm Appinventiv shares these other applications:
- Banks have been using AI chatbots to improve customer service. They answer frequently asked questions to reduce the workloads of their call center representatives. Meanwhile, they collect information that helps banks understand clients further.
- Artificial intelligence may have approved your recent loan and credit application. Nowadays, financial institutions use AI models to determine who qualifies for their debt options. They detect behaviors and patterns that the traditional credit check methods typically miss.
- Banks make money from people repaying loans, so they must offer debt solutions people need. AI programs can predict market trends to help financial institutions provide trending loan options to continue earning money.
You may also like: The Chatbot Developer’s Toolkit
The company also shared real-world AI banking examples. It mentioned JPMorgan Chase, which developed an early warning system against phishing and malware.
It alerts bank cybersecurity teams as soon as possible to help them prepare against attacks. Moreover, Capital One launched an AI assistant called Eno.
Conclusion
Google launched a new Ai program that helps banks combat money laundering. It detects real and false positives, improving financial institutions at fighting these risks.
These establishments used artificial intelligence tools before Google announced its newest technology. For example, you may have noticed your favorite bank use AI chatbots.
Artificial intelligence is already changing your life in ways you don’t know. Adapt to these shifts by learning the latest digital tips and trends at Inquirer Tech.