Technology for the sake of technology is the downfall of CIOs
AI can be used to enhance transaction monitoring in order to combat financial fraud. The traditional rule-based approach to anti-money-laundering (AML), which uses static thresholds, only captures one element of the transaction. This results in a high number of false positives. This is not only inefficient but can be demotivating to staff. AI allows for multiple factors to be analyzed simultaneously in order to develop a risk score, and a better understanding of risky behaviors. The feedback loop is based on advanced analytics, which means the more data collected, the smarter the solution will become. The process of identifying financial crimes becomes more efficient, and employees have more time to devote to other important areas such as strategy and business development.
Regulators and financial institutions cannot ignore the immense potential of AI. It has the ability to revolutionize the entire financial system. It offers unique opportunities to reduce human error that costs highly regulated industries millions of dollars each year.
It’s obvious that certain technologies will become impossible to ignore over time. We saw this with the adoption and use of cloud computing. Organizations that fail to adopt innovative technologies will be left behind. Cloud computing was once considered a pipe dream, but it is now a vital part of business operations. Businesses have implemented or are in the process implementing massive digital transformation projects for migration of business processes to cloud. In the same way, new businesses will also start in the cloud. It is important that technologists remain vigilant and keep an eye on new solutions.
Source:
https://www.forbes.com/sites/forbestechcouncil/2023/06/08/technology-for-technologys-sake-is-the-downfall-of-the-cio/
