Parker & Lawrence Growth Advisory

We're proud to announce the launch of our first research report - Generative AI in Risk and Compliance: Friend or Foe? 🚀 Key highlights: 🤖 𝟰𝟰𝟴 𝗚𝗲𝗻𝗔𝗜 𝗰𝗮𝗽𝗮𝗯𝗶𝗹𝗶𝘁𝗶𝗲𝘀 𝗮𝗻𝗱 𝗿𝗶𝘀𝗸𝘀 𝗺𝗮𝗽𝗽𝗲𝗱 into compliance use cases 💡 𝟭𝟳 𝗹𝗲𝗮𝗱𝗶𝗻𝗴 𝗲𝘅𝗽𝗲𝗿𝘁𝘀' cutting-edge insights 🗒 𝟯 𝗼𝗿𝗶𝗴𝗶𝗻𝗮𝗹 𝘁𝗮𝘅𝗼𝗻𝗼𝗺𝗶𝗲𝘀 for categorising GenAI capabilities, risks and compliance use cases The report is dense in insight but light in text - insights are derived analytically and presented visually. Check out the full report on our website, no sign-up required! 📄 https://lnkd.in/eGvC3JeT We're going to be to unpacking the report for our followers over the coming weeks. Hit follow to stay ahead of the curve!

Unlocking the Power of Generative AI in ESG Data & Ratings We’re thrilled to share the latest insights from our Bitesize Research series, diving into how Generative AI is reshaping ESG data and ratings, based on our full report released earlier this year. 🔍 Inside the Blog: 🌐 AI-Driven ESG Tools: Discover how AI is enhancing data aggregation, scoring, and reporting to provide a holistic view of company performance. 💡 Top AI Use Cases: From labeling and summarizing data to creating dynamic reports and facilitating client interactions, see which AI capabilities are leading the charge. ⚠️ Mitigating Risks: Learn how the industry is addressing key AI challenges, including hallucinations, bias, and system malfunctions, ensuring reliable ESG data. 📊 Expert Perspectives: Gain insights from OWL ESG, Inc. and others on how multi-AI models are being used to deliver accurate, actionable data. Explore the future of ESG data and ratings. Read more: https://lnkd.in/e35cihCZ #ESG #GenerativeAI #DataInnovation #RiskManagement #Sustainability #RegTech

Is your chatbot ready for the CFPB's new regulations? 🤖 The CFPB is stepping in to address ineffective chatbots and automated systems that frustrate rather than help customers. Their goal? To ensure that when we need assistance, we can quickly reach a real person instead of getting stuck in endless "doom loops." While chatbots can play a valuable role in the customer service journey, they must enhance the experience—not avoid it. The CFPB may soon require banks to offer a one-click option to connect with a live representative, with similar initiatives being considered across healthcare and telecommunications. Some may worry that this initiative could increase the burden on customer service teams, potentially requiring more hires and slowing down tech advancements. However, this push could instead accelerate the adoption of more sophisticated, generative AI solutions. This regulation could be a catalyst for innovation, pushing companies to adopt more advanced generative AI solutions. Or, could it stifle progress? We'll be watching closely. How do you think these changes will impact the future of customer service? Sendbird Aya Data Salesforce (Einstein GPT) Zendesk AI agents (Ultimate) https://lnkd.in/eF6r_ScU #CustomerService #ConsumerProtection #Innovation #CFPB #TimeIsMoney #Leadership

🚨Bitesize Research: Automating ESG Reporting & Disclosures with Generative AI We’re excited to share our latest piece in the Bitesize Research series. In this blog, we delve into how Generative AI is transforming ESG reporting and disclosures, highlighting: 📄 The top 5 generative AI use cases, from report creation to internal co-pilots. 🌍 Expert insights, including Briink’s approach to leveraging AI for ESG reporting, aligning with key regulations like CSRD and SFDR. 🔍 A heat map showcasing the impact vs. readiness of these AI capabilities. Ready to explore the future of ESG reporting? Dive into the full article: https://lnkd.in/eEEY3RV7 #GenerativeAI #ESG #Reporting #RegTech #Sustainability

Thank you to Maya Braine and FINTRAIL for contributing to our research into Generative AI for #FinancialCrime. Their insights covering Generative AI’s impacts on #AdverseMedia screening are the subject of our latest Bitesize Research piece. Quick learnings on: 🔎 The specific #GenAI capabilities enhancing adverse media screening. ⚠️ The risks of coordinated, AI-powered #disinformation which screening technologies must avoid. ⚖️ The balancing act that financial institutions face with Generative AI risks and opportunities. Full Article: https://lnkd.in/enHjy4Yh

We’re pleased to share the first blog of our new series, Bitesize Research: “Disrupting Transaction Monitoring with Generative AI: Key Research Findings.” In this series, we turn primary research into digestible pieces (<5 minutes). This first piece explores the main use cases and risks of generative AI in transaction monitoring, with heat maps to aid prioritisation. Additionally, discover one of Tookitaki’s key insights from our recent research, on how its Anti Financial Crime (AFC) Ecosystem is set to power generative AI for AML and fraud detection. Full article: https://lnkd.in/eh-25xug #GenerativeAI #FinancialCrime #TransactionMonitoring

An interesting approach to monitoring large language models… In a bid to ensure that artificial intelligence systems “embody core socialist values,” Chinese government officials are rigorously testing the outputs of large language models developed by major tech companies like ByteDance and Alibaba. The Cyberspace Administration of China mandates that AI models undergo comprehensive government reviews, focusing on responses to politically sensitive questions, particularly those related to President Xi Jinping. Developers face significant challenges in controlling the content generated by these models. And in a bid to comply with the requirements, they are turning to classifier models that filter and replace sensitive outputs in real-time. This extensive censorship regime includes constant updates to databases of sensitive keywords and adherence to stringent guidelines prohibit LLM’s from answering certain sensitive, or potentially comical questions directed at politicians. Despite these efforts, the development process is complex and often requires multiple revisions to pass CAC audits. Some companies, like ByteDance, have made significant progress, with their models showing high compliance with the prescribed safety standards. The overarching goal, as highlighted by Fang Binxing, the creator of China’s Great Firewall, is to develop a uniquely Chinese approach to AI that includes real-time safety monitoring. Read the full article here: https://lnkd.in/euMzYBQq

RESEARCH RESULTS: GenAI presents risks in more than 30% of Risk and Compliance use cases. ❗ After months of research, collaborations with 17 leading experts and 400+ GenAI opportunities and risks mapped, our results are clear - GenAI risk factors are going to create entirely new challenges in risk and compliance. Key Results: - Significant Risks: 13.4% of mapped risks are projected to be highly severe, with another 20.5% expected to be moderately severe. - Impacted Areas: Model risk, cybersecurity, and CDD & KYC facing the highest number of severe risks. - Imminent Risks: Cybersecurity, model risk, and CDD & KYC are set to face the most imminent genAI risks, with bias, deepfake voice, and malfunctioning systems being the most severe risks identified. Do you agree with our scoring? Let us know what you would change! Want to learn about how we came to these conclusions? Check out our industry deep dives (pages 28-70): 📄 https://lnkd.in/eGvC3JeT

ANALYSIS: Generative AI Challenges in Risk and Compliance (Severity vs Imminence) 📊 Check out our latest analysis on the severity and imminence of risks GenAI across various compliance use cases. Using a comprehensive approach involving desk-based research and expert interviews, we're able to plot RegTech and RiskTech categories according to: 1) The severity of GenAI risks that need to be managed by RiskTech and RegTech solutions. 2) The imminence of GenAI risks that need to be managed by RiskTech and RegTech solutions. Note that these rankings are: - Relative to one another. - Generalised across industries. - Accepting of outliers - through our industry deep dives, we have highlighted the most advanced solutions and thinkers in each space. Are you preparing to mitigate emerging GenAI risks? Do any of our results surprise you? To learn more about how we calculated these positions, check out the full report: 📄 https://lnkd.in/eGvC3JeT

𝐑𝐄𝐒𝐄𝐀𝐑𝐂𝐇 𝐑𝐄𝐒𝐔𝐋𝐓𝐒: GenAI is set to impact more than 70% of Risk and Compliance use cases. 🚀 After months of research, collaborations with 17 leading experts and 400+ GenAI opportunities and risks mapped, our results are clear - incorporating GenAI in risk and compliance workflows is going to have major impacts. Key Results: - 𝐒𝐢𝐠𝐧𝐢𝐟𝐢𝐜𝐚𝐧𝐭 𝐎𝐩𝐩𝐨𝐫𝐭𝐮𝐧𝐢𝐭𝐢𝐞𝐬: 25% of mapped opportunities are projected to have a high, fundamental impact on risk and compliance workflows, with another 45.5% expected to have a moderate impact. - 𝐇𝐢𝐠𝐡-𝐈𝐦𝐩𝐚𝐜𝐭 𝐔𝐬𝐞 𝐂𝐚𝐬𝐞𝐬: Compliance monitoring, eComms surveillance, and horizon scanning are identified as having the most high-impact applications of GenAI. - 𝐊𝐞𝐲 𝐂𝐚𝐩𝐚𝐛𝐢𝐥𝐢𝐭𝐢𝐞𝐬: Interpreting and summarising information, co-pilots, and labeling data are the genAI capabilities most associated with high-impact applications. But this isn't the whole picture. GenAI is also introducing new challenges for risk and compliance professionals to solve. Stay tuned for a full breakdown of those challenges from our report. Want the full story? Check out our report: 📄 https://lnkd.in/eGvC3JeT