AI has moved decisively from experimentation to execution within financial crime and compliance teams.
New research from Hawk, conducted in partnership with Chartis, surveyed 250 banks, payment firms and FinTechs to understand how institutions are adopting and scaling AI across AML, fraud prevention and screening. The findings show a clear shift: AI is no longer treated as an innovation initiative but as a core operational capability underpinning modern compliance frameworks. Read the banking report here and the payments/FinTech report here.
Within banking, adoption has reached a critical mass. Almost 90% of banks now actively encourage the use of AI, and 70% are already deploying it in some capacity across financial crime and compliance.
While maturity levels vary, the trajectory is clear. Nearly half of banks are currently piloting AI solutions, 16% have operational deployments, and a smaller but growing proportion have embedded AI at a strategic level across their organisations. Fraud prevention is leading the way, followed closely by AML transaction monitoring, reflecting where automation can deliver the fastest and most measurable impact.
Spending intentions reinforce this momentum. More than four in five banks plan to increase AI investment by over 25% in the next one to two years, signalling strong internal confidence in its long-term value.
Cost efficiency has emerged as one of the most significant, and unexpected, outcomes. While relatively few banks initially viewed cost reduction as a primary benefit, more than 70% have already realised savings. Almost half report savings exceeding $1m in the past year, with a majority expecting annual reductions of more than $5m by 2026.
The conversation is now turning towards generative and agentic AI. Banking leaders recognise their transformative potential but remain cautious. Regulatory and audit requirements are the dominant concern, alongside fears of excessive automation and the loss of human judgement.
Despite this, banks see clear and immediate opportunities. Investigations remain one of the most resource-intensive elements of financial crime operations, and AI agents are widely expected to streamline workflows. Automating research, data gathering and SAR drafting could significantly reduce manual effort, accelerate outcomes and free experienced investigators to focus on higher-risk cases.
Payment firms and FinTechs are following a similar, though more commercially driven, path. Fraud prevention is the primary entry point for AI adoption, with nearly three-quarters of firms either piloting or operating AI-based fraud solutions. AML and screening follow closely, reflecting the pressure to maintain compliance while processing high transaction volumes at speed.
Financial returns are already material. Almost three-quarters of payment firms report cost savings from AI in AML operations, with many expecting annual savings to exceed $5m as deployments mature. Investment plans mirror this optimism, particularly around generative and agentic AI, which firms see as critical to scaling without proportional increases in staff.
Taken together, the research shows that financial institutions have reached a turning point. The next phase will focus on scaling AI in a controlled, unified and well-governed way, ensuring explainability, regulatory alignment and sustainable value creation.
Source: https://fintech.global/
