Nine in ten (92%) alternative fund managers are using artificial intelligence to carry out routine risk and compliance procedures.
A global survey of 101 compliance and risk executives at alternative fund manager firms which collectively manage around $132.25 billion, found that, of those who already use AI as part of their risk and compliance procedures, one in ten (11%) started doing so more than two years ago.
According to the study commissioned by fund administration consultancy Ocorian, over half (55%) of those surveyed started using AI two years ago, and 24% started between one and two years ago.
Of the alternative fund managers who don’t already use AI, 71% say that they intend to start using it for risk and compliance operations within the next six months.
Transaction monitoring, staff filings and internal capital and liquidity monitoring, the monitoring of communications and financial promotions are all areas that fund managers believe have the potential to use AI.
Joe French, head of financial crime at Ocorian, said: “AI is revolutionising almost every aspect of financial services, and our survey results show that the majority of alternative fund managers have already been using AI within their compliance and risk procedures for around two years.
“When used for the right type of tasks, AI can transform the ability of over-stretched, under-resourced compliance teams.”
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