New Study Finds Ai Adoption In Employee Compliance Set To Surge By 2030!

The Future of Compliance: Overcoming Data Privacy Hurdles with AI

Artificial intelligence (AI) has the potential to revolutionize various industries, including the financial services sector. However, the adoption of AI in employee compliance operations has been hindered by several challenges, with data privacy remaining a significant barrier.

Early Stages of AI Adoption in Financial Services

The findings of a recent study by StarCompliance, a global leader in employee compliance technology solutions, suggest that the industry is still in the early stages of AI adoption. While 52% of firms report using preliminary AI tools for tasks such as information retrieval and data enrichment, only 9% have adopted more advanced “automated regulatory intelligence” platforms.

Despite this, the study reveals that the industry is building momentum. Over 60% of firms anticipate using more sophisticated AI tools by 2030. This suggests that the financial services sector is poised for significant growth in AI adoption in the coming years.

Data Privacy Concerns: A Major Hurdle to AI Adoption

Data privacy remains a top concern for financial services firms, with 65% citing it as the primary barrier to AI adoption. This is not surprising, given the volume of sensitive data required to support AI models.

• 71% of firms noted that these concerns are driven by the volume of sensitive data required to support AI models.
• 63% of firms have implemented data protection measures, but these measures are not always effective.

According to Kelvin Dickenson, Chief Product Officer at Star, “At Star, we’re committed to responsible AI—both in how we build it into our products and how our teams use it internally.” The company has implemented an AI governance policy to ensure the right checks and balances are in place to accelerate innovation safely, while maintaining the highest standards of data protection.

Industry Trends and Insights

Other key findings from the study include:

1. 47% of firms take a “learn as I go” approach to AI education.
2. 70%+ have formal AI usage policies; 51% block open-access AI tools entirely.
3. 43% are concerned about bias in AI-generated outputs.
4. Closed-source AI (e.g., Gemini) is more popular (41%) than open-source (e.g., ChatGPT at 32%).
5. 50% don’t factor AI capabilities into vendor evaluations.

Industry experts agree that data privacy is a major concern, and that firms need to take steps to address this issue. According to Alan Morley, Director, Anti Financial Crimes and BSA Advisory at Huron, “AI is transforming risk management, but firms need to navigate the ethical and regulatory gray zones to ensure compliance.” Steve Brown, Head of Business Development at Star, adds, “As we move forward, it’s essential to prioritize data privacy and ensure that AI systems are designed and implemented with this in mind.”

Upcoming Webinar: AI in Compliance – Regulatory and Risk Management

As part of Star’s commitment to advancing employee compliance efforts around the globe, the company will host a webinar, AI in Compliance: Regulatory and Risk Management, on Thursday, May 1, 2025, at 10:00 AM EST.