Opportunities and Vulnerabilities of AI in Automating Compliance and Regulatory Reporting in the Banking Sector in Bangladesh
DOI:
https://doi.org/10.54536/ajebi.v4i3.5586Keywords:
Artificial Intelligence, Compliance Automation, Institutional Readiness, Opportunities and Threats of AI, Regulatory RequirementsAbstract
This research investigated the prospects and threats of Artificial Intelligence (AI) in automating compliance and regulatory reporting for banks in Bangladesh. The study aimed to determine the current status of AI implementation, explore its benefits and risks, and evaluate organizational readiness for its adoption. A structured questionnaire was used and 120 respondents from banking professionals participated in this study, and 28% of them indicated that they have adopted or partially adopted AI tools for their compliance purposes. Key findings included the observation that 78% of respondents said they thought AI would reduce reporting time, and 72% agreed it would improve data accuracy, and that 81% were concerned about data security and 64% about transparency. Institutional readiness, perceived benefits and risk knowledge were evaluated using descriptive statistics and thematic analysis. There were several limitations of the study, including recall and reporting bias due to the self-report nature of the data, and the cross-sectional design allowing only limited cause and effect ascription. The implications suggests that banks and regulators need to work together to invest to develop necessary infrastructure, training and governance frameworks, in order to integrate AI in compliance system responsibly and efficiently.
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Copyright (c) 2025 Md Maruf Hossain, Md. Ashraful Alam, Sk Md Zafar Iqbal
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