2025 AI and Compliance Predictions: How AI Will Be Used and Regulated in Financial Services

We all know AI adoption will grow significantly in 2025 and that compliance is a major concern but how exactly it will be used is a little harder to predict. No one can know for sure but we’ve gathered some experts from the industry who know a thing or two about the technology.

We’ve already covered a number of fintech and financial services predictions for 2025 in our bumper predictions piece that went out recently. In that, thoughts on AI included:

“AI will become boring (and that’s a good thing)”

“We’ll see more financial services institutions take advantage of the revenue-driving benefits of AI, beyond just boosting productivity.”

“2025 will be a year of tempered optimism as we begin to see the cracks in the ‘magic’ promised by large language models.”

But there’s more.

We were fortunate enough to get in touch with the Chief Scientist, CEO and VP of Regulation at ThetaRay, who provided us with some further predictions to boot. We also gathered some additional thoughts from experts at Marqeta and Thunes to add to the conversation, and provided some further predictions at the end. For many fintech companies, AI is presenting real, positive solutions to some of the main challenges the financial industry faces, but it also means they know about standing up to scrutiny and complying with regulations.

Here, our experts provide their top predictions for AI, compliance and regulation.

Smaller, better, faster, smarter AI
Chief Scientist, ThetaRay, David Segev, on AI

“AI will become smarter at understanding the world. Advanced models will combine more diverse types of data – like text, images, sounds and numerical data—to uncover connections, enhance overall understanding, and generate smarter, more relevant and accurate insights.”
“We’ll see AI systems that can create content, evaluate its relevance, criticize, self-correct, and improve themselves without human intervention.”
“Smaller, faster generative AI models will emerge, offering more accurate results with fewer errors.”
“AI is evolving to be more autonomous and adaptive, and capable of responding to changes with little to no human input.”

Strategic compliance is the way forward
CEO, ThetaRay, Peter Reynolds on Compliance.

“Compliance leaders will shift from being gatekeepers to playing a strategic role in driving business growth and innovation.”
“AI in financial crime compliance will evolve into intelligent systems that understand data in context, delivering more accurate results and smarter decision-making.”
“CEOs will recognise AI-driven, cost-effective, and regulator-approved compliance as a critical differentiator in the market.”
“Improved risk management and tailored strategies will allow businesses to foster deeper and more trusting relationships with their customers.”

We also got some thoughts on compliance from Marqeta, Chief Compliance Officer, Alan Carlisle, who said:

Proactive compliance strategies will lay the foundation for fintech in 2025

“With banking and fintech partnerships under increasing regulatory scrutiny, the stakes around compliance have never been higher. In this environment, fintechs can no longer afford a reactive approach to compliance. Instead, they should adopt proactive compliance strategies that go beyond simply seeking to avoid fines and that are embedded into the everyday makeup of their culture and product strategies, helping to build trust, ensure stability, and foster sustainable growth.”

“At Marqeta, we’re committed to embedding compliance into our company’s culture, helping to mitigate risks and create a foundation for long-term success for us and our customers.”

Regulating the widespread adoption of AI
VP of Regulatory Affairs, ThetaRay, Yaron Hazan on AI for Regulation

“Regulators will shift from asking if financial institutions use machine learning, to focusing on how they leverage it for more proactive, data-driven compliance management.”
“Law enforcement will find more value in AI-powered reports, as these will provide richer, more relevant data, improving their ability to detect and respond to financial crime more effectively.”
“AI-driven reporting will improve the timeliness and accuracy of suspicious activity reports (SARs), allowing financial institutions to meet regulatory deadlines and reduce the risk of compliance failures or penalties.”
“Machine learning will become a key tool in compliance as financial institutions increasingly leverage AI to drive more accurate, efficient, and effective compliance processes.”

Chloe Mayenobe, President and COO at Thunes, also had this to say about Regulatory Change.

“As geopolitical complexities intensify, robust compliance frameworks will be non-negotiable in 2025. Companies operating across multiple geographies will need to be quicker on their feet to respond to regulatory change, and we expect to see corporates ramping up their compliance investments in 2025 to stay ahead. Adapting to this rapidly changing landscape will be key to driving trust and operational resilience in a more interconnected yet uncertain world.”

On stablecoins Mayenobe said, “We’ve seen strong advancements in blockchain technology this year, with the use of regulated stablecoins opening up huge possibilities for cross border transactions. What’s exciting here is their ability to boost business efficiencies – through reducing volatility, speeding up transactions, and improving liquidity. And while we’ve seen some early adoption in this space, we see 2025 as a turning point for stablecoin use, which will redefine how businesses and individuals move money across borders.”

Marqeta’s SVP Managing Director for Europe and UK, Marcin Glogowski also had some interesting thoughts on the development of BNPL.

“Increasingly with innovations like Buy Now Pay Later (BNPL), consumers are guided to credit options specifically suited to them and their needs. In 2025, I expect we will increasingly see personalised BNPL payment plan options being offered in real time, often within existing payment apps and products we already use daily. We are also seeing B2B payments emerging as a strong trend. Ensuring gig workers, sellers and partners get paid efficiently while offering robust expense management and financing. I anticipate we’ll see more demand for innovative B2B payment solutions that enable seamless money management across 2025.”

That’s all the predictions we’ve got for now. Be sure to stay tuned to FF News, to find out how on the money they are!

The post 2025 AI and Compliance Predictions: How AI Will Be Used and Regulated in Financial Services appeared first on FF News | Fintech Finance.

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