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RTÉ News
15-05-2025
- Business
- RTÉ News
40% of compliance leaders struggling with new regulations
Almost 40% of senior compliance professionals in Ireland's financial services sector are struggling with the volume of new regulatory requirements, new research reveals. The report from the Compliance Institute reveals growing strain on the industry, with many citing EU and Central bank rules as key areas of concern. The top challenge, cited by 42% of respondents, was the sheer volume of regulation, followed by pressures related to EU regulations, the Digital Operational Resilience Act, and resource constraints. The report reveals that 64% of organisations feel prepared for future compliance demands. Just 2% said they're unprepared, while one-third are somewhere in the middle. "Regulation is increasing in pace and complexity, stretching teams and systems to their limits," said Michael Kavanagh, CEO of the Compliance Institute. "While it's encouraging that nearly two-thirds of organisations feel prepared to meet these demands, the reality is that compliance teams are under sustained pressure," he added. According to the report, many teams are struggling to manage regulatory obligations without the support of adequate technology. In terms of the adoption of new technologies such as AI and blockchain, respondents recognise their potential but said they need more guidance, better training and stronger regulatory clarity. Compliance challenges also vary by sector. Credit unions and insurers report added pressure due to sector-specific requirements, while international firms face a balancing act across divergent regulatory frameworks, especially in areas like ESG, where regional expectations often conflict. "Compliance now more than ever is about shaping culture, embedding trust, and enabling sustainable growth," said Mr Kavanagh. "The most successful organisations are those where compliance is integrated early in the decision-making process and where leadership sets the tone from the top," he added.
Irish Independent
29-04-2025
- Business
- Irish Independent
Finance insiders fearful of AI fallout
The data, from the Dublin-based Compliance Institute, also showed that over 80pc of banks and financial services organisations in Ireland are now using AI for customer service, while a third are using it to apply risk-assessment processes and to prevent and detect fraud. The research showed that seven in 10 (69pc) are concerned about the potential for bias in AI decision-making, while six in 10 (59pc) are worried about data privacy and GDPR compliance risks. A similar number (56pc) are concerned about a 'lack of regulatory clarity' around AI. The Compliance Institute polled 150 compliance experts working primarily in Irish financial services organisations nationwide. 'The level of disquiet around the use of AI in organisations, particularly around AI bias and the accountability of AI-driven decisions, is interesting,' said Michael Kavanagh, CEO of the Compliance Institute. 'It suggests perhaps an inherent distrust of AI. Ultimately, AI will never be able to replicate the empathy that humans can bring to decision-making – as well as the nuanced approach they can take. 'While AI can have many benefits for the financial services sector, including its ability to detect fraud and to reduce customer service costs, its fast-growing capabilities and increasingly widespread use have raised concerns, particularly around privacy and misinformation issues and the lack of regularity clarity around AI.' AI-driven tools are not yet comprehensively adopted in the financial services sector, the survey found, with only 2pc of organisations using them 'extensively' and 18pc using them on a limited basis. More than half of the firms (54pc) say they are considering AI for compliance monitoring, fraud detection, or risk management. More than one in four (27pc) have no plans to implement AI tools in the near future. Among organisations currently using AI, its use in personalised financial products was limited to 10pc. 'With only one in five organisations using AI tools, and most of these only doing so on a limited basis, the financial services sector is clearly cautious about the use of AI in firms,' Mr Kavanagh said.
