Kuala Lampur:Experts at a recent conference emphasized the importance of using artificial intelligence (AI) to enhance human judgment rather than replace it in combating sophisticated financial crime. They highlighted the necessity for financial institutions to bridge critical gaps in AI skills.
According to BERNAMA News Agency, Edward Ling, CEO of the Asian Institute of Chartered Bankers (AICB), noted that while AI adoption in fraud detection, know-your-customer (KYC), anti-money laundering (AML), and counter-terrorism financing (CFT) is growing, human trust in AI-generated outputs for crucial decisions remains limited. Only 25% of respondents in AICB's study expressed sufficient trust in AI for key business decisions.
Ling emphasized that AI excels in processing large volumes of data and identifying patterns but understanding the implications of these patterns requires human judgment. He stated that AI should serve to amplify human expertise, allowing professionals to challenge outputs and take responsibility for decisions. This was discussed during a media roundtable at the 16th International Conference on Financial Crime and Counter Terrorism Financing (IFCTF) 2026.
Ling also pointed out the industry's struggle with a shortage of specialized AI skills, with 79% of study respondents identifying these gaps. He suggested that banking professionals need basic AI literacy to effectively question and responsibly use AI technology.
Martin Smith, a compliance and financial crime industry advisor at SymphonyAI Singapore, advocated for a proactive, intelligence-driven approach to preempt financial crime threats. He emphasized the need for financial institutions to analyze various data collectively to detect potential crimes before they occur.
Prevent Crime Now founder Dr. Shamir Rajadurai stressed the importance of institutions understanding criminal thought processes to identify vulnerabilities. He noted that individuals alone cannot combat sophisticated scams, as criminals exploit human psychology and technology.
Transparency International Malaysia president Dr. Raymon Ram argued that AI should be used to identify red flags rather than make decisions independently. He called for transparency and accountability in AI decision-making processes.
Confide Platform CEO Pav Gill highlighted the need for accountability in whistleblowing systems, urging that these channels be seen as early-warning mechanisms. He noted that AI introduces new dimensions in financial crime, necessitating careful governance of automated systems.
The experts concluded that addressing financial crime requires a combination of technology, human expertise, and effective information-sharing, emphasizing the need for responsible AI and institutional accountability.