The rise of generative AI and other technologies brings its benefits, but there are also risks from a compliance point of view.

Global Relay
Global Relay, a compliance technology firm, says that new communication channels such as ChatGPT and TikTok are bringing fresh risks to tasks such as recordkeeping.

The firm based its analysis on data from more than 12,000 financial institutions, examining a total of more than 200 channels. 

From 2024 until this year, firms capturing ChatGPT data skyrocketed by almost 3,000 per cent – mirroring the exponential growth in the use of this AI tool. The number of firms taking data from TikTok, the Chinese app, rose more than 2,000 per cent. There was also a sharp rise in the use of Apple ® Messages.

The data comes at a time when banks and other financial institutions have been punished for employees using private chat applications such as WhatsApp, for example. However, the convenient nature of such apps means that firms must develop protocols for using them responsibly to protect confidential data, and avoid weakening defences against potential attacks. In August this year, the UK Financial Conduct Authority said it was reviewing practices in the area. 

“Robust recordkeeping and monitoring of communications is essential for firms to detect and investigate misconduct. It also serves as an important safeguard for firms in client disputes and litigation. Off-channel communications have been a particular area of attention for wholesale banks over the past few years,” the regulator said. 

Integration
Global Relay’s report said that generative AI is becoming more integrated into business processes.

“While capture of corporate WhatsApp chats rose by 36 per cent in response to continued regulatory fines for off-channel communications, the increase in Apple® Messages capture may suggest firms are finding less risky alternative channels, away from regulatory scrutiny,” the report said. 

“While on the surface the slowdown of regulatory enforcement actions might paint 2025 as a less exciting year in the compliance space, these results prove it’s been anything but,” Rob Mason, Global Relay’s director of regulatory intelligence, said. “Looking at the tools firms are turning to in order to capture data is a surefire way of tracking both changing business priorities and wider industry trends.”