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The joint survey, conducted online in June and July 2024, gathered data from over 200 compliance leaders at over 215 financial services firms of various sizes and RAuM around their firm's use of AI tools and technologies, as well as compliance practices used to manage the risks AI tools and technologies present.

According to the survey, firms are missing opportunities to better manage AI risks. It found that only 32% of respondents have established an AI committee or governance group, only 12% of those using AI have adopted an AI risk management framework, and just 18% have established a formal testing program for AI tools. Furthermore, most respondents (92%) have yet to adopt policies and procedures to govern AI use by third parties or service providers, leaving firms vulnerable to cybersecurity, privacy, and operational risks across their third-party networks.

"We're seeing widespread interest in using AI across the financial sector, yet there's a clear disconnect when it comes to establishing the necessary safeguards," said Lisa Crossley, Executive Director, NSCP. "Our survey shows that while many firms recognize the potential of AI, they lack the frameworks to manage it responsibly. This gap not only exposes firms to regulatory scrutiny, but also underscores the importance of building robust AI governance protocols as usage continues to grow."

Other notable findings include:

• 75% of respondents are exploring AI or using it internally, with 37% of firms reporting already having adopted AI tools for internal use and 38% currently exploring AI use cases. The most common use cases for AI were research, marketing, compliance and risk management, and operations support.

• Among respondents already using AI, 52% indicated they use public enterprise generative AI tools (such as ChatGPT), 50% reported using private/enterprise generative AI, and 43% are using machine learning.

• Compliance professionals reported that their primary goal for AI use in the compliance program is to improve efficiency (67%). Yet, as 68% of compliance professionals at firms who have already adopted AI tools reported that AI tools have had "no impact" on their compliance program, this goal has gone unrealized.

• Cybersecurity or privacy concerns around AI tools were identified as the top concern when integrating AI tools into compliance programs (45%). This was followed by uncertainty around regulations or regulatory examinations (42%), lack of talent with AI expertise (28%), and lack of tools that meet compliance programs' needs (20%) as challenges to AI adoption.

"The survey's most concerning finding is the lack of policies governing third-party AI use," said Carlo di Florio, President at ACA Group. "Regulators are heavily emphasizing third-party risk management, as we saw with the SEC's Reg S-P updates, the SEC Cyber Rule, and the EU's Digital Operational Resilience Act. ACA is actively helping clients build robust AI governance frameworks that align with regulatory demands, ensuring compliance and improving program efficiency. Without these measures, leveraging AI's potential while remaining compliant will be challenging."

The full results of the 2024 AI Benchmarking Survey will be released during ACA's and NSCP's webcast on November 7, 2024.

ACA Group (ACA) is a 20-year-old governance, risk, and compliance (GRC) advisor in financial services.

Since 1986, the National Society of Compliance Professionals has been a non-profit, membership organization dedicated to supporting compliance professionals in the financial services industry.

Press release:

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