In a significant shift, 35% of compliance professionals in the financial services sector now identify advanced technologies like AI as the primary influence on compliance efforts, up from just 9% last year, according to Nasdaq's Annual Global Compliance Survey.
As firms face increasing regulatory scrutiny, they are investing in data scientists and advanced technologies to enhance compliance processes. Ed Probst, Senior Vice President at Nasdaq, noted that the complexity of regulatory requirements necessitates a workforce skilled in technology deployment.
Respondents indicated a focus on improving data quality and integrating cloud solutions, with many firms planning to invest in advanced analytics and tools for real-time monitoring over the next 12 to 24 months. This is crucial for addressing challenges such as false positives in automated systems, which disrupt operations and waste resources.
Compliance teams are increasingly recognized as essential in risk management and corporate governance, with 76% of survey participants affirming their influence in business decisions. Despite a moderating pace in compliance spending growth, over 40% of firms reported increased budgets, reflecting a strategic shift towards advanced analytics and data-driven approaches.