Google Cloud Unveils AMLAI: Transforming Anti Money Laundering with AI

Google Cloud Unveils AMLAI: Transforming Anti Money Laundering with AI

Google Cloud has unveiled its "Anti Money Laundering AI" (AMLAI) service, following a successful trial with HSBC, a financial services group based in London.

AMLAI utilizes machine learning to generate risk profiles, monitor transactions, and analyze data. In a blog post by Google Cloud, it was stated that:

"AI transaction monitoring replaces the manually defined, rules-based approach and leverages financial institutions' own data to train advanced machine learning (ML) models, providing a comprehensive view of risk scores."

During the trial, HSBC, Google Cloud's partner, reportedly experienced a two to fourfold increase in positive alerts and a 60% reduction in false positives.

The cost of the AMLAI service will depend on the number of customers served daily through the AML and risk scoring systems, as well as the inclusion of customers in the training data set used to develop the model.

The launch of AMLAI signifies Google and Google Cloud's continued expansion into the fintech sector. While the prevailing AI trend revolves around generative AI products like Google's Bard chatbot, the company has quietly established itself as both a fintech developer and a banking services provider.

During the COVID-19 pandemic, Google swiftly implemented a tool for processing paycheck protection program loans. Over the years, the company has explored alternative payment solutions, including the widely adopted Google Pay service and the introduction of Google-sponsored debit cards with near-field communication connectivity.

Google's increased involvement in the AML sector could bode well for the industry's growth. According to an analysis by BlueWeave Consulting, the global AML market was valued at approximately $3 billion in 2022 and is projected to reach nearly $8 billion by the end of the decade.

Factors influencing this anticipated growth include the emergence of non-traditional payment methods, an evolving regulatory landscape, and a gradual rise in global money laundering cases.

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