AI in Finance: Fighting Fraud with Cloud-Powered Compliance

Abstract

This article examines how cloud-powered artificial intelligence transforms fraud detection and regulatory compliance in the financial sector. As institutions contend with increasingly sophisticated fraud tactics and complex regulatory frameworks, such as Dodd-Frank, AI solutions offer a powerful counterbalance. The article explores how cloud-based AI systems enable financial organizations to consolidate disparate data sources into unified lakes, analyze transactions in real-time, and automate compliance documentation. The article examines implementation challenges, including data privacy concerns, model explainability requirements, integration hurdles with legacy systems, and the management of false positives. Additionally, it explores emerging technologies that are shaping the future of financial security, including federated learning, multimodal biometric authentication, blockchain verification, and potential applications of quantum computing. The article's findings demonstrate that cloud-powered AI represents a technological solution and a strategic approach that transforms regulatory compliance from a cost center into a competitive advantage, enhancing security capabilities and fostering customer trust.