The FIRM yearbook 2026 is online

By Dr. Jochen Papenbrock, Dr. Sebastian Fritz-Morgenthal, Dr. Mark Währisch

Artificial intelligence is profoundly changing banks’ risk management. After years of rule-based automation, the rise of so-called agentic AI systems is opening up a new dimension: AI models that not only analyse, but also independently prepare decisions, prioritize tasks and coordinate processes. This shifts the focus from reactive data evaluation to proactive management of complex risk and compliance processes.

As part of the Artificial Intelligence Round Table, FIRM is addressing the question of how financial institutions can shape this development – with a view to governance, data quality, supervisory capability and cultural requirements. The key finding of the discussions so far is that agentic AI is not technological hype, but a strategic lever for resilience, efficiency, innovation and regulatory security.

By Dominik Käfer, Dr. Lue Wu, Jens-Peter Nees

Navigating compliance can be a challenging journey for a bank’s front office. Relationship managers often voice frustrations about the escalating demand from compliance tasks such as Know Your Customer (KYC), transaction monitoring or anti-fraud measures. These tasks not only heighten workloads but can strain relationships with clients. Fortunately, it doesn’t have to be this way. By harnessing  artificial intelligence (AI), leading banks have shown that compliance and control protocols can be seamlessly integrated into front office’s daily operations and products and a harmonious and productive partnership between the front office and the compliance function is indeed achievable.