Poor adverse media screening can be detrimental to a company’s reputation. As a result, many are starting to use artificial intelligence (AI) as a means to further filter and monitor news. In fact, only 14 per cent of companies aren’t considering using ChatGPT, or other large language models (LLMs), as an additional capability for adverse media screening according to research from Ripjar, the cybersecurity firm.
In its 2023 State of Adverse Media Screening report, Ripjar surveys 205 compliance professionals from across Benelux, Sweden, Finland, Germany, France, Italy, the United Kingdom, and the United Arab Emirates. The report examines attitudes to adverse media screening, the current role that technology plays in media screening, and what the future outlook is set to be.
Jeremy Annis, CEO and co-founder of Ripjar, said: “We are witnessing a transformative era in adverse media screening, driven by advancements in AI and machine learning. Our survey report highlights the significant impact that technology adoption can have on improving risk detection and compliance surplus.
“At Ripjar, we work closely with ground-breaking compliance professionals dealing with a vast range of challenges. We are excited to see how innovative solutions will continue to empower compliance teams and shape the landscape of risk management.”
Appropriate use of resources
The report finds that 71 per cent of firms using tech for screening are using some form of AI or machine learning (ML) as a core component in the process. However, 20 per cent of respondents are still doing adverse media screening manually. This is not only time-consuming but a costly use of other resources too. The report highlights that 62 per cent of respondents acknowledge an over-reliance on manual processes though, and that they see the potential of the technology.
Since its launch in November 2022, ChatGPT’s popularity has skyrocketed. Its monthly active users nearly doubled between December 2022 (57 million) and January 2023 (100 million), and as of June 2023, it has had over 1.6 billion site visits. However, Ripjar’s research shows that 14 per cent of its respondents show no signs of using the platform or any other LLM.
Fifty per cent are considering its use in the future, while 34 per cent are keen to explore these models. Despite the platform’s popularity and the growth of generative AI, only two per cent of respondents are using AI in adverse media screening.
Trust in AI
It’s not surprising that trust in these new platforms wavers. Many organisations have seen the emergence of the technology as a threat, rather than an optimising tool. Especially when large corporations plan to replace workers with AI, as BT announced in May 2023. Ripjar’s research found that despite these announcements, the majority of its respondents were somewhat confident in LLMs (58 per cent). Meanwhile, 23 per cent are not very confident while 12 per cent are.
Gabriel Hopkins, chief product officer at Ripjar, said: “This survey report underscores the transformative power of technology in the fight against financial crime. With advancements in AI and machine learning, organisations now have access to powerful tools to enhance operational efficiency and bolster anti-money laundering.
“The findings highlight that firms leveraging sophisticated technology solutions are seeing significant advantages. While the potential for AI is immense, our customers highlight the importance of working with a trusted solution which provides performance and the required levels of model governance.”
As organisations navigate an increasingly challenging regulatory environment, embracing technology for adverse media screening offers distinct advantages in optimising compliance efforts.
The report shows that technology driven solutions empower firms to effectively manage risks, make sense of vast amounts of unstructured data, and prioritise alerts for analysts. The report then concludes that the adoption of advanced technology is crucial for organisations to proactively mitigate risks and ensure compliance in an ever-evolving landscape.
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