On 30 October 2018 JWG will be running a session of our Trade Surveillance Special Interest Group (TSS), the session will focus on the use of Artificial Intelligence for Trade Surveillance purposes. The discussion will cover how AI is being deployed within trade surveillance systems as well as holistic surveillance more broadly including aspects such as communications surveillance.
Whilst not everyone defines AI in precisely the same way, it is fair to say that it is not, currently, widely used within the industry for surveillance purposes. Indeed, in a recent JWG eComms compliance survey only 12.5% of firms surveyed are currently utilising machine learning technologies as part of their surveillance systems.
However, there is recognition that this is an area in which the technological capability is maturing, and clearly some firms are starting to take the leap towards AI. The question is how AI is being deployed today and what purposes can the industry agree it has the potential to fulfil going forward.
One reason for the lack of uptake may be a nervousness in the industry about how compliant systems which allow AI to take compliance related decisions may be. This is an area which in general the regulatory community has not taken a firm stance. How firms are approaching the uncertainty surrounding requirements related to justifying decisions made by artificial intelligence is an important topic for debate.
In this regard the upcoming Kemp IT session on ‘Managing the legal aspects of artificial intelligence’ scheduled for 17 October 2018 may also be of interest. This session will provide corporate counsel with an AI legal toolkit, focusing on what AI really means in legal terms, tips on successful contracting for AI projects and a road-map for AI ethics and governance in the organisation. If you are interested in the session, please contact email@example.com
As mentioned, not everyone means the same thing when they say AI, some may refer to the use of natural language processing in deciphering eComms whilst others may mean the use of self-learning algos to analyse trade data. A discussion around the types of technologies that are being considered and in some cases leveraged will also be important.
There is a general trend in the industry towards the adoption of a more holistic approach. Where firms are implementing surveillance solutions that are capable of collating data from the various siloes, this can create alerts based on more complete information, thereby reducing the number of false positives being produced, serving to improve testing processes. It seems clear that more holistic approaches offer greater opportunities for incorporating AI.
JWG has several RegTech Special Interest Groups (SIGs) relating to Trade Surveillance, KYC/AML, and reporting and reference data, established to bring all parts of the industry together to discuss how to best match compliance challenges with the latest technological solutions.
If you would like to contribute towards these groups, either as a firm or a vendor, then please contact JWG via the following e-mail: firstname.lastname@example.org. The TSS meeting on 30 October already has nearly two dozen registrants so get in touch soon to secure a seat.