The debate around how artificial intelligence will impact employment continues to dominate headlines. But in the compliance industry, the momentum of AI is undeniable and already reshaping the roles of compliance professionals
A survey carried out by Moody’s found that 96% of risk and compliance professionals believe that their roles will be impacted as AI becomes embedded in day-to-day operations, but they do not expect these roles to disappear.
Across banking, wealth management and professional services, AI is already being used to strengthen exercises such as fraud detection and streamline Know-Your-Customer (KYC) checks. Compliance functions are becoming more analytical and more forward-looking as automation is taking care of the repetition that once defined the job. The shift underway is less about replacement and more about redefining what proactive compliance looks like.
The reality behind adoption
The use of AI in compliance has surged, with our survey showing 53% were now testing AI for compliance compared with 30% two years ago. The pace of adoption shows that firms increasingly recognise that manual reviews alone can’t keep up with today’s risk landscape. AI tools can identify anomalies across vast datasets in seconds, reducing false positives and freeing professionals to interpret and act on insights rather than search for them.
Fintechs, asset and wealth management, and professional services firms are leading the shift, sectors that we’ve identified as the most advanced in adopting AI for compliance. More than seven in ten organisations in these areas are already using or trialling the technology, far ahead of corporates, insurers, and government bodies.
Their advantage lies in data maturity. 59% of firms actively using AI rated their data as high quality, compared with 69% of non-users who described theirs as inconsistent or unstructured. These advances are moving compliance from a reactive discipline toward a predictive one, enabling professionals to identify potential risks before they escalate.
Oversight over automation
As AI systems become more deeply embedded in compliance, professionals are clear about both their advantages and their limits. While 84% of risk & compliance professionals believe the technology offers major benefits, most compliance professionals believe human oversight is essential and their organizations are implementing safeguards like training, governance frameworks, and internal software tools to mitigate risks.
This is prompting a wider redefinition of what compliance means in practice. Professionals are shifting from performing manual checks to supervising the systems that perform them. They are learning how to interpret and challenge AI-generated results whilst building the governance structures that keep automation in check.
For the UK’s financial advice and wealth management industry, this evolution carries particular weight. Compliance professionals are becoming stewards of AI-driven processes, helping to preserve the trust that underpins client relationships.
Building literacy and trust
Despite the uptake in integrating AI, barriers remain. Many compliance teams are still building the skills needed to manage AI confidently, with around four in ten compliance professionals identifying a lack of internal expertise as their biggest obstacle to scaling adoption. As tools grow more advanced, understanding how they function is becoming just as critical as understanding regulation itself. That’s why many in the profession are calling for structured training and stronger governance frameworks, priorities highlighted by nearly half of respondents.
Both measures are important for strengthening confidence that models are applied consistently and that outcomes can be explained when required. For leaders, this means embedding technical literacy within compliance teams without diluting the core of professional expertise.
From cost centre to catalyst
Compliance has long been viewed as a necessary cost, absorbing time and resources that could otherwise support client engagement, but AI is beginning to change that perception. By streamlining due diligence processes and reducing repetitive manual tasks, firms are reclaiming capacity for higher-value analysis and personalised service.
AI can strengthen both governance and efficiency. Real-time insight into client risk and data quality allows advisers to make faster, better-informed decisions while maintaining the oversight that underpins long-term trust.
Our survey shows a profession in a transition period. The compliance teams of tomorrow will be AI-literate, helping financial services maintain integrity in an increasingly complex environment. The question is no longer whether AI will change compliance, as it already has. The challenge now is ensuring that human expertise continues to shape how that change unfolds.
