Google Cloud (GOOG, GOOGL) announced Wednesday the launch of an anti-money laundering (AML) product powered by artificial intelligence (AI). The tool is designed to help global financial institutions detect money laundering more effectively and efficiently.
important point
- Google Cloud has launched an AI-powered product for banks to help detect money laundering more effectively.
- This tool uses machine learning to create a risk score that identifies high-risk customers.
- Google Cloud has announced that its AI tools have reduced the number of alerts HSBC receives by more than 60%.
How does Google’s new tool work?
Google Cloud aims to differentiate its tools by eliminating rule-based programming typically used to set up and maintain AML monitoring programs.
The United Nations estimates that about 2-5% of the world’s gross domestic product, or about $2 trillion, is laundered each year. Despite billions of dollars being invested in anti-money laundering systems over the past decades, over 95% of the money generated by the system has been laundered. Alerts are closed as “false positives” during the first stage of review.
Google Cloud’s tools offer an integrated risk score generated by machine learning as an alternative. Risk scores are formed from transaction patterns, network behavior, and customer perception data to identify instances of high-risk retail and commercial customers.
Google Cloud announced that using this approach, their AI tools have reduced the number of alerts HSBC receives by more than 60%. HSBC “true positives” rose 2-4 fold, suggesting greater precision. Other notable users include Banco Bradesco in Brazil and digital bank Lunar in Denmark.
Google’s AI push gains momentum
Tech giants such as Microsoft (MSFT) and Amazon (AMZN) are racing against each other to roll out new (AI) products and applications. Google got off to a rocky start with the launch of the Bard chatbot, but has since continued to announce new features. Multiple AI-driven applications such as maps, search, and advertising campaigns.
