Panza and Klaros Group Team to Offer AI-Powered Compliance

Financial industry compliance/risk monitoring platform Panza has teamed with advisory firm Klaros Group.

Klaros, based in Walnut Creek, California, is a “boutique advisory firm” specializing in bank regulation, compliance and risk management, corporate governance and business strategy, the companies said in a news release Wednesday (Dec. 18).

Konrad Alt, managing partner of Klaros Group, said his company was excited by the possibility of artificial intelligence (AI) helping its subject matter experts to spend less time dealing with “foundational consulting tasks” and more on issues where they can provide the most value.

“Many of the emerging AI solutions we’ve reviewed at Klaros simply don’t work for us because they don’t adequately protect the confidentiality of client information,” Alt said. “Panza is different. The Panza team shares our commitment to preserving client confidentiality; they’ve built a solution that we’re excited to work with.”

The release noted that many financial services businesses spend at least 10% of their revenue dealing with compliance and risk, struggling to manage these areas more efficiently as they expand. Panza said its AI platform and “expert-driven vetting process and human oversight,” should help customers find economies of scale and boost their bottom line.

“Panza believes that their AI agents and training methodology, combined with expert-level feedback, delivers a level of precision and reliability that chatbots and generic AI products cannot replicate,” the release added.

As PYMNTS wrote last month, AI cannot eliminate every compliance challenge, but it is offering a more level playing field, especially for small- to medium-sized businesses. The technology offers these businesses tools once reserved for larger corporations and allows them to compete on new terms in a complicated regulatory arena.

“By reducing costs associated with manual processing, error correction and external audits, AI-driven compliance systems allow smaller enterprises to maintain high standards without overspending,” that report said.

“Freed from repetitive tasks, employees can focus on higher-value work, such as strengthening customer relationships or identifying new growth opportunities,” PYMMTS added, pointing to research showing that 61% of SMBs use AI to automate daily tasks.

“While we like to refer to AI as more evolutionary than revolutionary in the world of tax and compliance, there is no denying its impact and importance … Using predictive analytics to anticipate changes has become an essential part of our business,” Sovos President of Revenue Alice Katwan wrote in a new PYMNTS eBook, “Beyond the Horizon: How to Identify Unexpected Threats That Could Impact Your Business.”