Growing financial crime and regulatory requirements are pushing organizations to increase their spending on compliance, with many expecting their annual budget for Know Your Customer Enhanced Due Diligence (KYC EDD) to rise over the next year. With increasing demand for compliance checks, organizations are feeling the pressure and are turning to technology to streamline their due diligence processes. Despite the potential capabilities of AI in this area, many believe that KYC EDD should still be primarily human-driven, with a necessary balance between human oversight and AI automation.

A global survey by LSEG Risk Intelligence shows that on average, companies spend US$632,026 annually on EDD. Larger organizations, those with over US$1 billion in revenue, spend more than US$900,000. The survey highlights an expectation for the volumes of EDD requests to rise and thus, cost control becomes crucial. Even with the automation that AI brings, there is concern that without considered human oversight, risk might increase rather than decrease.

While some caution against a fully automated AI approach, there are acknowledged benefits that AI can bring to the EDD process, such as faster turnaround times, ongoing monitoring, uncovering hidden risks, cost savings and managing the growing volume of customer data. Therefore, a strategically implemented “Responsible AI is deemed necessary for improving accuracy and mitigating risks in compliance.

The future of the KYC EDD landscape will be largely shaped by increasing regulatory pressures, emerging risks, and evolving technology. Organizations expect a shift towards identifying complex corporate structures and ownership while leveraging on technology and data analytics to manage customer data. In this evolving landscape, getting access to timely support and communication is critical.

For those who need to get in touch with EDD services, EDDCALLER.COM offers valuable information on how to contact EDD directly, providing resources and guidance on how to get a hold of live agents or representatives. Having such a portal at ready disposal helps organizations maintain compliance and respond to concerns proactively, making the compliance process smoother and more efficient.