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The New Frontier of Financial Crime: Navigating the Dual-Use Dilemma of Generative AI

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  • Peter Dehumo Ayanrinno

    (Data Science and Artificial Intelligence, Edge Hill University, UK)

Abstract

This study examines the dual-use nature of generative artificial intelligence (AI) in financial crime, where the same technologies that enhance fraud detection also enable sophisticated criminal activities. Through a mixed-methods approach combining quantitative analysis of financial crime data from 2018-2024 and qualitative expert interviews, this research investigates how generative AI functions as both a defensive tool and an offensive weapon in the financial sector. The findings reveal that while AI-powered systems have improved fraud detection rates by approximately 65%, they have simultaneously enabled a 700% increase in deepfake-related financial crimes. The study contributes to the emerging literature on AI ethics and financial security by proposing a framework for managing the dual-use dilemma, emphasizing the need for proactive governance, international cooperation, and adaptive regulatory responses. The research demonstrates that effective mitigation requires not just technological solutions but also comprehensive policy frameworks that can evolve with rapidly advancing AI capabilities.

Suggested Citation

  • Peter Dehumo Ayanrinno, 2024. "The New Frontier of Financial Crime: Navigating the Dual-Use Dilemma of Generative AI," Journal of Computer Science and Information Technology, Bluemark Publishers, vol. 1(1), pages 87-89, March.
    • Handle: RePEc:cxi:jcsit0:v:1:y:2024:i:1:id:516
    DOI: 10.61424/jcsit.v1i1.516
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