Financial institutions anticipate significant annual savings in compliance operations, with approximately a quarter of firms projecting savings of $4 million or more, due to the implementation of Agentic AI, according to a survey by Fenergo.
In a recent study conducted by Fenergo and Chartis Research, it was found that agentic AI is becoming increasingly popular among global financial institutions as a means to improve the effectiveness and cost efficiency of compliance operations [1][2][3]. The survey, which polled 90 risk, compliance, and technology professionals from asset managers and banks in the US and UK in 2025, revealed that 93% of financial institutions plan to implement agentic AI within the next two years, with 6% already using it.
Reasons for Adoption
The study identified several key drivers for the adoption of agentic AI. Fraud detection emerged as the top reason, with over a third (36%) of firms citing it as their primary motivation. KYC maintenance followed closely at 19%, while transaction monitoring accounted for 16% [1][2]. Firms are eager to address challenges such as client loss due to manual KYC processes and inefficient onboarding, and agentic AI offers a solution by reducing manual workloads, accelerating decision-making, and lowering the risk of compliance breaches [1][3].
Anticipated Benefits
The benefits of agentic AI are expected to be significant. Over a quarter (26%) of firms anticipate annual savings exceeding $4 million [1][2]. Improved operational efficiency and scalability, enabling wider deployment across businesses, is another key advantage [1]. Agentic AI also boasts proactive and intelligent detection capabilities, surpassing static, rule-based systems by autonomously screening transactions, spotting hidden risks, and adjusting screening depth dynamically [4]. Enhanced audit trails and regulatory reporting through intelligent cross-checking of data such as adverse news and sanctioned entities are additional benefits [4].
Key Concerns and Challenges
Despite the potential benefits, there are concerns and challenges associated with the adoption of agentic AI. Data privacy risks (44%) and regulatory compliance (36%) are the top concerns for US financial institutions considering agentic AI [1][3]. The complexity of implementing AI-driven compliance that meets regulatory standards and manages sensitive customer data responsibly is another challenge [1][4]. Ensuring scalability while maintaining compliance quality remains crucial for wide adoption [1].
Competitive Differentiation and Client Service
The adoption of agentic AI could lead to significant competitive differentiation and improvements in client service. Keith Redmond, Chief Product Officer at Fenergo, stated that agentic AI is being considered as an intelligent, efficient, and value-driven compliance assistant [5]. However, concerns around data privacy and regulations have the potential to stall the adoption of agentic AI.
The study also revealed that 67% of global financial institutions are losing clients due to manual KYC processes and inefficient client onboarding [1]. Agentic AI is seen as a solution to rising financial crime risks and outdated onboarding processes.
In summary, agentic AI is valued by global financial institutions as an advanced, cost-effective compliance assistant that enables proactive risk detection and streamlined workflows while addressing significant operational inefficiencies. However, firms remain cautious about data privacy and regulatory implications in deploying such AI systems [1][3][4].
[1] Fenergo and Chartis Research, "Agentic AI in Compliance Operations: Unlocking the Benefits and Addressing the Challenges," 2025. [2] Redmond, K., "Agentic AI: The Future of Financial Crime Prevention," Fenergo Blog, 2025. [3] "Agentic AI in Compliance Operations: A New Era for Financial Institutions," Forbes, 2025. [4] "Agentic AI in Compliance: The Key to Meeting Global Regulatory Obligations," Fintech Futures, 2025. [5] Redmond, K., Interview, "The Power of Agentic AI in Compliance," Compliance Week, 2025.
- Financial institutions are adopting agentic AI primarily to enhance fraud detection capabilities, aiming to address challenges such as client loss due to manual KYC processes and inefficient onboarding, and to reduce manual workloads, accelerate decision-making, and lower the risk of compliance breaches.
- The benefits of agentic AI are predicted to include significant annual savings, improved operational efficiency, scalability, proactive and intelligent detection capabilities, enhanced audit trails, and better regulatory reporting, making it a valuable asset for global financial businesses in the field of finance and technology.
