IBM is unleashing Watson, the tech company’s artificial intelligence platform, on financial regulations.
On Wednesday, the New York-based technology firm rolled out a suite of software solutions that will help financial institutions manage their regulatory responsibilities.
“Essentially, we’re embedding our deep regulatory experience into Watson so that a broader group of professionals can benefit from this knowledge and help their organizations operate more effectively and efficiently,” said Gene Ludwig, founder and chief executive at Promontory Financial Group, a subsidiary of IBM involved in the roll-out.
The three offerings, which are powered by Watson, are as follows:
- Watson Regulatory Compliance. This offering will help financial firms better identify the regulations to which they have to subscribe. IBM Financial Crimes Insight with Watson. This service uses advanced analytics to help firms understand and act on criminal threats. IBM Algo One Big Data Foundation. This solution marries big data and risk management technology.
Financial firms pay a high price to comply with regulations. According to McKinsey, the international consulting firm, banks dedicate approximately 10% to 15% of their operational spending budgets to managing risk and compliance.