• Google Cloud launched Anti-Money Laundering AI (AML AI) tools, offering efficient alternatives to traditional methods for detecting money laundering activities, following a successful trial with HSBC.
• During the trial, HSBC experienced a two to fourfold increase in positive alerts and a 60% decrease in false positives, as reported by HSBC and Google Cloud.
• AML AI utilizes transaction data, account details, KYC information, and past suspicious activity to generate risk scores, reviewed by analysts using a case management system.

In line with its efforts to integrate artificial intelligence (AI) into its products, multinational technology firm Google’s cloud computing services Google Cloud launched Anti-Money Laundering AI (AML AI) tools to offer more efficient alternatives to traditional rule-based methods in detecting large-scale money laundering activities. The release came after a successful trial with London-based financial giant HSBC.

HSBC and Google Cloud reported that during the trial, HSBC observed a two to fourfold increase in positive alerts and a 60% decrease in false positives.

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Google Cloud’s Anti-Money Laundering AI Tools

To generate risk scores, the AML AI utilizes transaction data, account details, know-your-customer (KYC) information, and past suspicious activity. The scores are then reviewed by analysts using a case management system. 

In an article, Google stated that the adoption of AI for money laundering detection has been challenging due to regulatory and risk coverage considerations. In response, the firm has developed AML AI, which provides model governance, extensibility, and secure deployment within the customer’s tenant data. 

Personalized operations per customer ensures flexibility and adaptability to cater to the specific needs and priorities of each customer. Google assures that the product is securely deployed within the customer’s environment to ensure the protection and confidentiality of their data.

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In addition, by incorporating an “explainability” feature in its AML AI the firm addressed the concerns regarding the limitations of artificial intelligence.

Aside from producing transaction alerts and utilizing various data sets to identify high-risk retail and commercial customers, the solution also offers detailed information about transactions and contextual factors that contribute to the assigned risk score when flagging a customer.

The feature is set to increase transparency and understanding aid investigations, assist risk managers in assessing covered risks, and facilitate model governance.

Utilizing AI for Money Laundering Detection

AI in Docs 

Recently, Google has incorporated AI into its web-based word processor, Docs, as part of its Workspace Labs program, allowing users to test AI features. The AI feature in Docs functions as an integration of ChatGPT directly into the document, offering users enhanced capabilities. The AI feature in Docs is currently available to testers using US English in 178 countries, including the Philippines.

Google Bard

Following the popularity of ChatGPT, the firm also created a conversational AI chat bot. Bard is an experimental conversational AI service powered by Google’s LaMDA language model; it was unveiled by Google and Alphabet CEO Sundar Pichai on February 6, 2023. Users can freely utilize Google Bard without any subscription fees or additional charges.

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This article is published on BitPinas: Google Cloud Utilize AI to Combat Money Laundering

Disclaimer: BitPinas articles and its external content are not financial advice. The team serves to deliver independent, unbiased news to provide information for Philippine-crypto and beyond.

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