Google introduces 'anti money laundering AI' following successful HSBC trial

In the midst of the ongoing Artificial Intelligence revolution, Google Cloud has made a groundbreaking move to combat money laundering. The technology giant has launched its Anti Money Laundering AI (AML AI) offering, aimed at assisting financial institutions worldwide in detecting and preventing money laundering. This illicit practice costs banks a staggering $2 trillion annually, accounting for approximately 2-5% of the global GDP.

HSBC, the London-based financial services group, played a pivotal role in the development of this cutting-edge technology. A case study conducted in partnership with HSBC demonstrated the impressive capabilities of AML AI. By leveraging machine learning algorithms, AML AI identified 2-4 times more suspicious activities while simultaneously reducing alert volumes by over 60%.

Google Cloud’s AMLAI service employs advanced machine learning models to generate risk profiles, monitor transactions, and analyse data. Traditional rules-based approaches are replaced by AI transaction monitoring, harnessing the power of financial institutions’ own data to provide comprehensive risk scores.

The trial with HSBC showcased remarkable results, with the bank experiencing a significant increase in positive alerts, ranging from two to four times the previous amount. Furthermore, false positives were dramatically reduced by an impressive 60%.

Pricing for the AMLAI service will depend on the number of customers serviced daily, as well as the inclusion of customers in the training data set used to develop the model’s accuracy in risk scoring and anti-money laundering measures.

This latest development from Google Cloud marks another stride in the company’s growing presence in the fintech space. While generative AI products like Google’s Bard chatbot currently dominate the AI landscape, Google has quietly established itself as a prominent fintech developer and banking services vendor.

Google’s commitment to combating money laundering extends beyond this initiative. In response to the COVID-19 pandemic, the tech giant swiftly implemented a paycheck protection program loan processing tool. Over the years, Google has explored alternative payment solutions, notably its widely adopted Google Pay service and the introduction of Google-sponsored debit cards featuring near-field communication connectivity.

The expansion of Google’s involvement in the AML sector presents a positive outlook for the industry’s growth. According to BlueWeave Consulting, the global AML market size was valued at approximately $3 billion in 2022 and is projected to reach nearly $8 billion by the end of the decade.

Several factors contribute to this anticipated growth, including the emergence of non-traditional payment methods, a dynamic regulatory landscape, and an alarming rise in global money laundering cases. With the launch of AMLAI, Google aims to make a significant impact in curbing these illicit activities and safeguarding the integrity of the financial sector.