Google Launches Novel Anti-Money Laundering AI for Global Retail and Commercial Banks

Jimmy Aki
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Google Cloud has officially launched an AI-powered algorithm for financial organizations to effectively detect money laundering transactions and schemes globally.

Google AI Momentum Pushes Forward: A Refined Solution for the Financial Industry

Google Cloud has officially announced the launch of an anti-money laundering (AML) product powered by generative artificial intelligence (AI) technology.

The AI tool is built to enable financial institutions worldwide to spot money laundering activities in real-time at an effective and efficient rate.

In a press release, Google described money laundering as the biggest and major problem that has plagued the financial sector for many years.

Money laundering is the concealment of the initial origins of illegally sourced money. This practice involves money transfers through local and international banks or legitimate businesses to avoid detection.

According to Google’s public statement, about $2 trillion was laundered in 2022. It also gave an account that an approximate average of 2–5% of the global Gross Domestic Product (GDP) is lost to money laundering annually.

The statistics testify to money laundering being an increasingly complex and global problem.

Google also reiterated that laundered money is often connected to human trafficking, drugs, or funding for terrorist activities.

Tracking these illegal schemes often requires significant sources of human analysis, lengthy hours, and reports to diverse regional regulatory authorities.

To help solve the global financial plague, Google has built a set of machine learning (ML) that makes up the anti-money laundering (AML) tool.

The AI-powered AML tool is believed to examine billions of transaction records of individuals and businesses for trends and signs of financial crime.

The new AI by Google would minimize the lengthy hours that financial analysts and investigators use to track and explain AML outputs.

AML AI “Risk Score” Work Mechanism Structure

Google Cloud’s new AML AI is set to be distinctive. The tool takes different build components compared to conventional rules-based programming, which is typically used to set up and run several AML surveillance products.

Most saturated AML programs rely on manually defined rules sourced from years of experience.

While these rules are effective based on highly yielded results in spotting high-alert illegal financial schemes, there is a low rate of recorded accuracy.

Furthermore, human-written rules are easier for money launderers to learn and create a change that bypasses previous detections.

Google suggests 95% of system-generated alerts turn out to be false because it requires a significant number of manual reviews that take a long time and reduces the ability to spot suspicious activity.

Google Cloud AML AI

Google Cloud AML AI uses a set of machine learning-generated risk scores to mitigate money laundering.

The tool tracks know-your-customer (KYC) data, transactional patterns, and network behavior. It also provides a risk score that denotes risky retail, commercial, and business customers.

Google Cloud AI is flexible in tracking trends and adapting to changes quickly.

Google Cloud CEO Thomas Kurian asserts that the tech company continues its commitment to bringing AI-powered innovation to the financial services industry.

The launch of Google Cloud AML AI is expected to help financial institutions across the globe to accurately and efficiently spot and track laundering activities.

The AI Competitive Industry

Multinational technology companies like Microsoft and Amazon are set to be in a hot-red competition geared toward attaining dominance in the emerging AI industry.

Microsoft and Amazon have dedicated billions of dollars and have rolled out utility AI products and applications like ChatGPT, Azure AI, and many more.

While Google had a shaky start with the debut of its AI chatbot called “Bard,” the company has launched a range of versatile AI-powered products, including maps, ad campaigns, search prompts, and now a powerful AML AI product.

As Google continues to position itself as a major competitive force to reckon with, AI enthusiasts are excited over the rivalry between tech giants to dominate the AI space.

About Jimmy Aki PRO INVESTOR

Based in the UK, Jimmy is an economic researcher with outstanding hands-on and heads-on experience in Macroeconomic finance analysis, forecasting and planning. He has honed his skills having worked cross-continental as a finance analyst, which gives him inter-cultural experience. He currently has a strong passion for regulation and macroeconomic trends as it allows him peek under the global bonnet to see how the world works.