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. 

ThetaRay is a fraud detection and AML software provider, using AI to make that whole process more efficient and more effective. For them, 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 three experts provide their top predictions for AI, compliance and regulation. 

Smaller, better, faster, smarter AI

Chief Scientist, ThetaRay, David Segev, on AI

1. “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.”
2. “We’ll see AI systems that can create content, evaluate its relevance, criticize, self-correct, and improve themselves without human intervention.”
3. “Smaller, faster generative AI models will emerge, offering more accurate results with fewer errors.”
4. “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.

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

Regulating the widespread adoption of AI

VP of Regulatory Affairs, ThetaRay, Yaron Hazan on AI for Regulation

1. “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.”
2. “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.”
3. “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.”
4. “Machine learning will become a key tool in compliance as financial institutions increasingly leverage AI to drive more accurate, efficient, and effective compliance processes.”

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!