Google Cloud recently announced the launch of its service “Anti Money Laundering AI” (AMLAI) following a successful trial with London-based financial services group HSBC.
AMLAI uses machine learning to create risk profiles, monitor transactions, and analyze data. According to one entrance on the Google Cloud blog:
“AI-powered transaction monitoring replaces the manually defined, rules-based approach, leveraging the power of financial institutions’ own data to train advanced machine learning (ML) models to provide a complete view of scores.” risky”.
In practice, Google Cloud claims that its testing partner, HSBC, saw a two to four times increase in the number of positive alerts and a 60% reduction in false positives.
The cost of the service will vary based on the number of customers served daily by the AML and risk scoring systems and the number of customers included in the training dataset used to spin the model.
The launch of AMLAI is another step in the ambitions of Google and Google Cloud in the field of fintech. While the current AI ethos centers on generative AI products like Google’s Bard chatbot, the company has been quietly making its presence felt as a fintech developer and banking services provider.
During the COVID-19 pandemic, Google quickly rolled out a Payroll Protection Program loan processing tool. Over the years, the company has raided in alternative payment solutions, such as its widely adopted Google Pay service and the emergence of Google-sponsored debit cards with NFC connectivity.
Google’s increased involvement in the anti-money laundering sector could be a positive sign for the growing industry. According to an analysis by consultancy BlueWeave, the size of the global anti-money laundering market was estimated to be around USD 3 billion in 2022 and is expected to reach almost USD 8 billion by the end of the decade.
Mitigating factors for expected growth include the rise in non-traditional payments, an ever-changing regulatory landscape, and a progressive increase in the number of money laundering cases Worldwide.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.