The rapid growth of data and technology infrastructures in our digital era has opened us up to the possibility of sophisticated cybersecurity threats. However, amidst these challenges, artificial intelligence (AI) offers a glimmer of hope by providing advanced tools to aid in digital security.
By Nick Kock, head: CSO business advisory services at Absa Group
AI considerably enhances the capabilities of cybersecurity professionals by automating menial tasks which allows them to focus more on strategic and high value operations. Its importance is only amplified as we continue to witness the emergence and adoption of new technologies such as IoT, 5G and blockchain. AI acts as a watchdog for these technologies alerting us to any anomalies or potential threats.
Examples from various sectors showcase how AI has successfully been deployed in security systems. For instance, Mastercard utilises an AI solution called Decision Intelligence which detects fraudulent transactions by examining account history, location, and merchant data.
Likewise, HSBC collaborated with Quantexa an AI start-up to design an AI solution capable of combating money laundering through analysing internal and transaction data. Another prime example is JP Morgan’s use of its Contract Intelligence (COiN) platform in mitigating operational risks through the analysis of legal documents and reducing a significant amount of man hours in the process.
Furthermore, AIs compliance with regulatory frameworks has become increasingly significant in the financial services industry hence companies are now utilising RegTech powered by AI technology for real-time compliance purposes.
In doing so, it is evident that artificial intelligence presents itself as one of the most innovative solutions currently available in safeguarding our institutions from cyber-attacks while simultaneously maximising efficiency levels across various sectors such as finance through its numerous applications like biometric verification techniques which authenticate user identities.
For example, USAA’s mobile app uses facial and voice recognition algorithms to enhance security compared to traditional password-based systems. However, utilising AI in financial cybersecurity presents challenges including data privacy and ethics, skills gaps, evolving cyber threats, and potential system exploitation.
To overcome these challenges, there’s a need for continuous investment in skills development, robust security measures, strong data governance practices and AI system updates.
That said, the benefits of AI outweigh these risks in cybersecurity. Hence, the financial services industry can maximise this transformative potential by establishing secure digital assets which will contribute to enhancing economic growth. Though demanding, aiming towards a more stable and secure financial system is worth it.