How AI workflows are reshaping efficiency in capital markets

For decades, compliance and risk functions have been treated as unavoidable cost centres; essential, but expensive. Now, they’re becoming strategic assets.

The firms quietly redefining their margins in 2025 aren’t those cutting staff or outsourcing; they’re the ones using AI workflow automation to transform how data moves through the business, from KYC to ESG to risk reporting.

1. The data problem no one talks about

Capital markets firms generate huge volumes of unstructured data: client onboarding files, transaction reports, regulatory disclosures, sustainability updates, and internal audit trails. Yet, according to a recent GaiaLens analysis, up to 68% of that data remains underused because it’s locked in PDFs, spreadsheets, or siloed systems. This is the real compliance bottleneck.

When compliance teams spend most of their time finding and formatting data instead of analysing and acting on it, opportunity costs soar. Missed trends, delayed filings, and duplicated work quietly eat into margins every quarter.

2. AI workflows: from manual to measurable

The turning point isn’t flashy GenAI chatbots or headline-grabbing pilots; it’s the deployment of secure, explainable AI across specific, high-value workflows. Think:

• Automating regulatory data extraction from filings and internal documents

• Identifying anomalies in client or ESG reporting data

• Generating evidence trails for audits or SFDR reporting in minutes

When those tasks move from manual to measurable, compliance shifts from reactive to predictive, and that’s where ROI begins. Early adopters in the banking and asset management sectors report:

• 30-50% faster reporting cycles

• Significant drops in external consulting spend

• Improved internal audit readiness due to traceable AI models

In other words, compliance that pays back.

3. The compliance flywheel effect

Once AI workflows are embedded, a “flywheel” begins to form. Cleaner, structured data feeds smarter risk modelling. Smarter models identify new revenue or efficiency opportunities. Those gains then fund further automation. It’s a loop, not a one-off.

For capital market leaders, the question isn’t whether AI can cut compliance costs; it’s whether they’re ready to turn those savings into strategic advantage before competitors do.

4. The ROI of readiness

In a sector built on precision and trust, explainability matters as much as speed. That’s why next-generation compliance AI isn’t about opaque black-box models; it’s about traceable, auditable AI that can withstand regulator and auditor scrutiny.

Firms adopting this approach are finding a new equilibrium: Compliance functions that deliver insights to the board, not just checkboxes to the regulator. They’re proving that the true ROI of AI isn’t headcount reduction; it’s margin resilience.

Key Takeaways

Compliance doesn’t have to be a cost of doing business. With the right AI architecture, it becomes a capital advantage, one that compounds over time, reshaping how financial institutions think about efficiency, transparency, and growth.

Explore how GaiaLens helps capital markets teams build secure, explainable AI workflows across compliance, risk, and ESG.

Discover GaiaLens for Financial Institutions