HSBC Holdings Plc has struck a partnership with U.S. artificial intelligence startup Ayasdi Inc. to automate anti-money laundering investigations, Reuters reported June 1, citing the bank's chief operating officer.
Anti-money laundering investigations are labor-intensive but do not find suspicious activity in a huge majority of cases, according to Ayasdi. In a pilot of the firm's technology, HSBC saw the number of investigations fall by 20% with no reduction in the number of cases that were referred for further scrutiny.
"It's a win-win," HSBC COO Andy Maguire said in an interview. "We reduce risks and it costs less money."
Ayasdi Executive Chairman and co-founder Gurjeet Singh was appointed to HSBC's new technology advisory board in January.