As financial institutions move from AI experimentation to real-world application, the conversation is shifting from what’s possible to what’s responsible, scalable and defensible. In a sector built on trust and governed by scrutiny, how can organizations achieve transformation and compliance?
TaskUs experts tackled this question during recent Executive Connect events in London and New York. They also explored what’s happening and what’s next, plus the challenges of innovating in a tightly regulated industry.
Here are the top 5 insights from the discussions.
1. AI augments — and will not replace — humans
Technology enables smarter, faster decisions, particularly in areas like fraud detection and know-your-customer (KYC). AI tools help reduce false positives and prevent unnecessary customer escalations. Agentic AI can ease operational bottlenecks by handling low-risk tasks like card reissues and account unlocks, with the right parameters.
But AI has its limitations. “The work agents do is often too nuanced for full automation,” according to Brandon Charif, vice president, client services.
Successful deployment requires thoughtful design, constant tuning and robust security frameworks. From integration to performance monitoring, businesses must engineer every step to maximize ROI without creating unforeseen friction in the customer experience.
2. Without oversight, AI causes trust and compliance risks
While AI can analyze vast datasets and flag risks in real time, speed alone isn’t enough when it comes to compliance functions.
“Explainability matters,” says Pragya Agarwal, VP, fincrime & compliance. “When a model makes a mistake, the firm ultimately bears the consequences. And if it can’t explain decisions, it undermines credibility with both regulators and customers.”
Taking a human-in-the-loop approach, where experts step in to review and validate AI decisions, is essential. Continuous oversight, feedback and bias checks are safeguards for upholding compliance as businesses build and scale AI.
3. AI-powered scams are redefining fraud prevention
Gone are the days of amateur(ish) phishing attempts: poorly created emails or “Nigerian prince scams.” Fraudsters are using GenAI to design fake websites, impersonate individuals and craft sophisticated social engineering schemes. Worse, scammers are also targeting employees, bypassing traditional detection systems.
Internal controls matter just as much as external defenses. Brandon suggests that businesses evaluate their “fraud triangle” to protect their people and reputation:
- Opportunity: Limit system access with strict controls
- Pressure: Mitigate through fair compensation and employee support
- Rationalization: Reduce by building a culture of transparency and respect
4. Real-time payments demand real-time risk management
Instant payments are table stakes. But speed can come at a cost: the faster money moves, the harder it is to detect suspicious activity and the smaller the window for recovery. Proactive, AI-powered fraud detection flags anomalies before funds leave the account.
But Pragya cautions that businesses must strike the right balance between customer protection and experience. Consumers want to feel secure but also expect fast transactions.
The key lies in deploying intelligent, low-friction solutions like device fingerprinting, behavioral biometrics and velocity checks. These tools work silently in the background, delivering robust protection without slowing customers down.
5. Regulatory compliance is more than a checklist
Keeping up with evolving regulations takes more than a reactive approach. Businesses must build compliance into how they operate, innovate and scale.
“Compliance is both understanding what the rules say and why they exist,” explains Celeste Roman, director, compliance. “The best teams bridge the gap between regulatory intent and customer expectations, translating both into processes and product updates.”
When compliance is treated as a shared responsibility and not a siloed function, companies can respond to change quickly, confidently and without compromise.
Looking ahead
AI and regulations will always evolve. The winners in the financial industry won’t necessarily be the fastest adopters or the most risk-averse. The advantage will belong to those who combine machine and human intelligence, move with intention and balance performance with trust.
Want to understand what all this means for your business? Connect with our financial services experts today.
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