The rapid evolution of artificial intelligence (AI) is transforming the banking sector, particularly in compliance and internal controls. This paper explores the future role of AI in enhancing regulatory adherence across jurisdictions, mitigating risks and streamlining operational processes. It examines how advanced technologies — such as machine learning, natural language processing and predictive analytics — are reshaping compliance frameworks and enabling proactive risk management. The scope includes practical examples of AI applications in transaction monitoring, fraud detection, regulatory reporting and internal audit functions, as well as the ethical and governance challenges that accompany these innovations. Readers will gain insights into emerging trends, regulatory expectations and implementation strategies that balance innovation with accountability. By the end of the paper, compliance professionals and banking leaders will have a better understanding of how AI can drive efficiency, accuracy and resilience in internal control systems while maintaining trust and meeting stringent regulatory standards. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
Marili Anderson (2026) studied this question.