Financial Compliance with AI

Financial institutions are facing increasing pressure to comply with regulations, leading to rising compliance costs. Sedric, a new startup powered by generative AI, is tackling this challenge by providing a comprehensive AI-powered platform designed to monitor employee interactions and flag potential compliance issues.

• A recent poll revealed that 76% of financial services firms increased their compliance expenditure from 2022 to 2023.
• The average cost of compliance for financial institutions is estimated at around $10,000 per employee.

Sedric's AI-powered Approach

Sedric's AI system acts as a real-time compliance overseer, monitoring employee communications across multiple channels, including calls, chats, emails, social media DMs, and instant messages. It aims to identify potential compliance violations, such as missed disclosures, incorrect steps, and misconduct, as they occur.

• Sedric can automatically mitigate issues and provide coaching to employees in many cases.
• The AI provides a holistic view of customer touchpoints, enabling compliance officers to quickly identify deviations from established policies and guidelines.
• Sedric's platform covers the entire compliance lifecycle, from policy setting to enforcement, correction, and audit.

Addressing AI Bias

A key concern with AI-powered workplace monitoring is the potential for bias. Studies have shown that some AI systems trained to detect toxicity may misinterpret language used by Black Americans, leading to discriminatory outcomes. Sedric is addressing this issue by using "fine-tuned models" trained on proprietary datasets curated and validated by industry experts.

• The company monitors model performance and retrains models when necessary.
• Sedric allows customers to provide direct feedback through annotation inputs, enabling continuous improvement and adaptation of the AI system.

Privacy and Security

Sedric prioritizes customer and employee privacy and security by providing companies with control over data storage and allowing them to redact personally identifiable information. They also implement strong security measures to protect sensitive data.

• Companies can set their own retention policies and compliance guidelines.

Market Success and Future Plans

Sedric has attracted hundreds of paying compliance officers and enterprise customers in the US and Europe. The company has experienced fivefold revenue growth in the past year, demonstrating strong market traction.

• Sedric offers off-the-shelf solutions for small and medium-sized businesses and customized solutions for enterprises and banks.
• Their focus on the specific needs of financial institutions and their proprietary library of regulation-inspired models sets them apart from competitors.
• Sedric recently secured an $18.5 million Series A investment, further fueling their growth and development.
• The company plans to double its headcount in the next 12 months, expanding its go-to-market and R&D teams.

AI-powered Workplace Monitoring: A Controversial Landscape

The use of AI for workplace monitoring is a controversial topic. While these tools have the potential to streamline compliance and reduce risks, they also raise concerns about employee privacy and the potential for bias. Sedric is actively working to mitigate these concerns by focusing on transparency, accountability, and continuous improvement.

• It's crucial for companies implementing AI-powered monitoring solutions to prioritize ethical considerations and ensure responsible use.
• Open dialogue and transparency with employees regarding the use of these tools is essential to build trust and address potential concerns.