Artificial Intelligence and GANs in Regulatory Compliance- Enhancing Risk Management in Financial Services

This paper investigates the utilization of artificial intelligence (AI) and Generative Adversarial Networks (GANs) in ensuring regulatory compliance for financial institutions. With compliance becoming increasingly intricate and resource-heavy, financial organizations are exploring advanced technological solutions. We analysed how AI, particularly GANs, can simulate various regulatory scenarios, thereby strengthening risk management models and enhancing decision-making processes. The study outlines implementation approaches, examines case studies of successful AI applications, explores challenges and constraints in AI adoption for compliance, and concludes with recommendations for institutions aiming to employ these technologies. Our findings indicate that GANs provide valuable capabilities for stress testing, scenario simulations, and fraud detection while requiring strict governance, data accuracy, and regulatory approval.