Pinsent Masons partners with Xapien to launch the world’s first large language AI tool for Anti-Money Laundering compliance

The new tool looks to address three critical challenges currently faced by the AML industry: ballooning compliance costs, slow onboarding processes and a disproportionate focus on low and medium-risk clients.

The solution is forecast to reduce average onboarding times from weeks to hours and reduce risk exposure by better deploying critical human-led compliance resource. Using AI to research and analyse data will allow analysts to swiftly clear low-risk clients, reallocating resources to the more complex task of high-risk client selection.

This marks a watershed moment for the global AML compliance industry. The current AML approach in the legal sector is fragmented, human-dependent, and spread across multiple systems, delaying when law firms can start billing clients. This can disrupt cash flow, extend the period during which billed work remains unpaid, and risk alienating clients before work has even begun.

Andrew Cheung, General Counsel at Pinsent Masons said, “The need for faster, better and more efficient compliance has never been greater. Too much time and resource currently goes into analysing low and medium risk clients and matters and that detracts from the time required for higher risk issues. We’ve been working with Xapien for over a year to develop this new automated AML due diligence and risk assessment tool that will revolutionise the way firms approach AML.”

The tool comprises features that include consolidated risk assessment and screening reports and consolidating AML due diligence process. By dramatically improving clearance times using AI, the tool will allow firms to start acting for clients faster, resulting in a competitive edge for AI-enabled firms.

Chris Green, CEO at Xapien said, “There is an increasing need for organisations of any size to truly ‘know’ their third parties - their customers, suppliers, donors, applicants, and investors. Firms no longer simply ask ‘can we’ be in business with someone (a straight compliance question). They ask ‘should we’? This has created a ballooning industry of laborious and time-consuming background research. Our collaboration with Pinsent Masons represents a major advancement in the application of AI to solve these compliance challenges. We look forward to making the solution available to global law firms and AML-regulated businesses.”