AI-Powered Compliance Solutions in Banking: A Study of Axis Bank’s Transformative Approach

Devendra Singh Kushwaha
Manager, State Bank of India, Kanpur, Uttar Pradesh
devkushwaha@gmail.com

ABSTRACT:The banking industry operates within a highly regulated environment where compliance with Know Your Customer (KYC), Anti-Money Laundering (AML), and customer due diligence requirements is critical. Traditional compliance processes often rely on manual verification, extensive documentation, and repetitive administrative procedures, resulting in delays, operational inefficiencies, and increased compliance costs. Artificial Intelligence (AI) has emerged as a transformative technology capable of automating regulatory processes while improving accuracy and customer experience.This paper examines Axis Bank’s implementation of AI-powered solutions for Re-Know Your Customer (ReKYC) and Digital Business Profile Updates for current account customers. The study explores how Generative AI, Large Language Models (LLMs), document intelligence, and real-time Goods and Services Tax (GST) data integration are being used to simplify compliance activities and strengthen regulatory controls. The analysis evaluates the technological foundations, operational benefits, and regulatory implications of these initiatives.The findings indicate that AI-driven compliance solutions improve efficiency, reduce manual intervention, enhance data accuracy, strengthen fraud prevention mechanisms, and provide a seamless customer experience. The study further demonstrates how AI-enabled Regulatory Technology (RegTech) is shifting compliance management from a reactive process to a proactive and preventive framework. The paper concludes that intelligent automation will become a central component of future banking compliance systems and regulatory governance.

Keywords: Artificial Intelligence, Banking Compliance, RegTech, ReKYC, GST Integration, Generative AI, Digital Banking.