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Alphabet’s Google Cloud Launches Anti-Money Laundering AI after Successful Test with HSBC
The rule-based transaction monitoring used by financial institutions to identify money laundering is about to be disrupted by Alphabet Inc’s (NASDAQ: GOOGL) Google Cloud Anti Money Laundering AI. After a successful trial period with London-based HSBC Holdings Plc (NYSE: HSBC), the American tech giant is ready to roll out the AI-focused anti-money laundering program. According to the company, the Anti Money Laundering AI was designed to meet model governance requirements in the banking industry. Moreover, the program is user-friendly and easy to grasp for data analysts, risk managers, and auditors.
According to a leading research and advisory firm focused on technology for financial institutions, Calent, the Google Cloud Anti-Money Laundering AI earned its model risk manager of the year after helping HSBC at scale.
Notably, the scalability and high-performance computing power of the Google Cloud Anti-Money Laundering AI enables it to significantly reduce batch processing time for HSBC’s large customer base. Thereby enabling advanced models to improve detection capability and deliver more accurate results.
“Celent sees this as a game changer in how large banks are approaching financial crime and a clear example of how advanced technologies are becoming the mainstream technology paradigm of the future for compliance,” the research firm noted.
Worth noting that the new crime detection system dubbed the Dynamic Risk Assessment (DRA), uses Google Cloud’s AML AI to help financial institutions nab crimes that are otherwise not obvious to the human resource. According to Google Cloud, the new AI-based AML tool has several direct benefits to the users including increased risk detection time, and lower operating costs, among others.
Google Cloud AML AI
The new Google Cloud AI AML product helps to harness the power of financial institutions’ data to train advanced Machine Learning (ML) to issue better services at scale. Moreover, the Google Cloud AML examines transaction, account, customer relationship, company, and Know Your Customer (KYC) data to identify patterns, instances, groups, anomalies, and networks for retail and commercial banks.
The AML AI product is set to have two pricing components. On one hand, the product is priced daily based on the number of banking customers. On the other hand, the model trading and tuning is based on the banking customers used in the input data.
Following the announcement, Alphabet shares closed Thursday trading at around $123.15, up approximately 2.16 percent from the day’s opening price. As a result, GOOGL shares have gained approximately 40 percent YTD. The $1.53 trillion valued tech company has significantly doubled its investments in the AI sector amid global demand.
Alphabet’s Google Cloud Launches Anti-Money Laundering AI after Successful Test with HSBC
