New findings from Ocorian, a provider of regulation and compliance services for various financial sectors, has revealed widespread integration of AI in risk and compliance procedures among alternative fund managers.
According to a recent international study conducted by Ocorian, among senior leaders and executives in alternative fund manager firms, a staggering 92% are using AI as part of their risk and compliance protocols.
The study, which included firms managing a combined total of approximately US$132.25bn (£105.96bn) in assets under management (AUM), indicates a significant level of adoption across the industry.
Among those utilising AI, 11% have been doing so for more than two years, while 55% began implementation within the last two years. Some 24% adopted AI within the past one to two years.
Ocorian’s global survey also analysed future intentions, with 71% of respondents expressing plans to incorporate AI into their risk and compliance functions within the next six months.
Alternative fund managers identify several key areas where AI can enhance risk and compliance procedures. The most popular applications mentioned were: transaction monitoring (28%), trailed by staff filings (21%) and internal capital and liquidity monitoring (20%).
AI’s potential also extends to monitoring communications (19%) and financial promotions (13%), according to the study.
