AI Compliance Monitoring Market Size (2023 – 2030)

According to our research report, the global AI compliance monitoring market size in 2022 was USD 129.56 million and is estimated to reach USD 1.429.36 million by 2030. The market is projected to grow with a CAGR of 35% per annum during the period of analysis (2023 - 2030).

Industry Overview

Artificial intelligence has been around for almost 70 years, but it has only recently become more realistic. Scientists, professors, and business owners are all excited about AI's future and how it will impact our lives. These developments and technological advancements may be observed all around us and in many businesses. Regulators are developing and demanding tighter control over financial services in the financial industry due to the increased demand for services such as online insurance and virtual banking. These new technology services pose hazards and necessitate an organization-wide compliance policy.

AI is becoming more prevalent in the regulatory compliance sector. Managers have been looking at using artificial intelligence to monitor firms and individuals to assure compliance. AI has been assisting regulators and the industry in maintaining compliance, reducing risks, and overcoming problems. To get the benefits of technology, businesses must be flexible. In this fast-paced sector, having a plan to embrace technology and understanding how it may improve your organization is critical. You must ensure that stakeholders are capable of adapting to changes and utilizing technology tools. Before incorporating Artificial Intelligence into the compliance process, it is critical to invest time and resources. Once deployed, the system will only serve to strengthen, accelerate, and improve the organization.

Impact of Covid-19 on the Industry

With persistent geopolitical conflicts, worldwide trade battles, and the odd storms and earthquakes, managing and monitoring credit, market, liquidity, and operational risk across financial markets was difficult enough. The present pandemic crisis has compelled chief risk officers and their teams to rethink traditional risk management and monitoring assumptions and approaches. The worldwide impact of COVID-19 has demonstrated how interconnection is crucial in international collaboration and how obsolete technology obstructs good policymaking. As a result, several governments began hurrying to locate, evaluate, and procure viable AI-powered solutions. AI systems are being used in hospitals throughout the world to detect illnesses using people's speech or chest x-rays.

Market Drivers

AI helps eliminate human errors in the system

The human mistake may cost businesses a lot of money, therefore prevention is crucial. The majority of these fines are the result of data breaches, which have put pressure on regulators. Companies must track, manage, and analyze a large amount of data about their customers and operations. When operations are manual or primarily manual, the volume of data raises the risk of human mistakes. RegTech Innovation: "AI technology may cast light on blind spots, reasonable mistakes, and other things that people may not necessarily pick up on."

Reduces the operating cost due to its high efficiency

Firms are struggling to keep up with the expenses of following regulatory changes and reporting processes to authorities as government control over financial services grows. According to 89 percent of compliance executives, their costs have risen in the last two years. It is critical to ensure that the organization is aligned to prevent costly fines for non-compliance.

Reduction of manual work in the system

According to a recent poll, 32% of financial institutions want to expand the number of workers in their compliance departments. However, with the application of modern technology, this number might be reduced, lowering expenses and the risk of human mistakes. While technology does not replace humans in the compliance area, it does provide an additional layer of safety for businesses.

When it comes to more manual labor, technology can discover patterns or trends in employee activity faster than people, allowing businesses to act more quickly and assure regulatory compliance. To strengthen supervision and compliance, businesses can use technology to supplement existing processes and procedures.

Market Restraints

AI is not best suited for error mapping

Even if attempts to build and improve strong AI continue, it may not be the greatest fit for error-free mapping, particularly in the field of compliance management. The best way to illustrate this idea is to use the example of a dispute between a company's internal code of conduct and its whistle-blower protection policy.

AI Compliance Monitoring Market Report Coverage:

 This research report on the global AI in compliance market has been segmented and sub-segmented based on Component, Geography & region.

Global AI in Compliance Monitoring Market- By Component

• Solution
  • Software Tools
  • Platform
• Services
  • Consulting
  • Integration
  • Support and Maintenance

Based on Components, the market is segmented into solutions and services. The solutions segment is projected to have the highest market share during the period of analysis. The services segment is projected to grow substantially during the period of analysis.

Global AI in Compliance Monitoring Market- By Geography & Region

• North America
• Europe
• Asia-Pacific
• Latin America
• The Middle East and Africa

Organizations in North America, particularly in the United States, have taken use of AI, machine learning, and deep learning technologies to remain ahead of the competition. The region's economies are well-established, allowing AI governance suppliers to invest in new technology. Furthermore, it is recognized as a hotbed of innovation, with large IT businesses releasing intelligent gadgets and partnering with other AI governance firms.

Global AI in Compliance Monitoring Market- By Companies

• Alphabet Inc. (US)
• Microsoft Corporation (US)
• IBM Corporation (US)
• SAP SE (Germany)
• Salesforce.com, Inc. (Salesforce)
• Amazon Web Services, Inc. (US)
• QlikTech International AB (US)
• TIBCO Software Inc. (US)
• SAS Institute Inc. (US)
• Facebook, Inc. (US)
• FICO (US)
• Zest AI (US)