From blockchain to artificial intelligence (AI) and embedded finance, innovation within B2B is continually reaching new heights.
The rise of advanced technologies has created unprecedented opportunities for businesses to streamline operations and improve efficiencies.
These emerging financial technologies have created unprecedented opportunities for businesses to streamline operations and improve efficiencies and ignited a new era of opportunity — and complexity.
Particularly as technologies like cryptocurrency re-emerge from the shadows of skepticism, and the rapid adoption of AI-driven solutions in FinTech and payments continues, compliance professionals find themselves at the epicenter of this transformation as regulatory expertise becomes a high-demand skillset.
As recently as Wednesday (Nov. 13), payment financing network Huma Finance launched its protocol on the Solana blockchain, expanding Huma’s ability to provide instant liquidity solutions for global businesses. And on Friday (Nov. 15) PYMNTS covered how OpenAI reportedly plans to release an autonomous computer-controlling agent called “Operator,” marking a significant advance in artificial intelligence (AI) systems that can independently browse the web and complete online transactions.
For companies looking to embrace the cutting-edge of innovation while remaining accountable, compliance teams must serve not only as gatekeepers but as enablers of sustainable growth.
Read more: How 21st Century CISOs Balance AI Risks Against Rewards
Businesses, particularly in the financial services and payments industries, are embracing cutting-edge technologies to gain a competitive edge. Blockchain has the potential to transform cross-border transactions with greater transparency, speed and efficiency. AI is automating everything from fraud detection to customer onboarding and both accounts payable (AP) and accounts receivable (AR) functions, while embedded finance is integrating financial services into everyday business processes.
As Mastercard EVP Blockchain and Digital Assets Raj Dhamodharan told PYMNTS, “Blockchain technology, and public blockchains in particular, are opening up a number of new use cases, one of which is to transfer value — such as remittances — from one country to another.”
However, these innovations can often operate in regulatory gray areas. For instance, while blockchain enables real-time settlements, it can also obscure ownership trails, raising red flags for anti-money laundering (AML) and counter-terrorism financing (CTF) compliance. Similarly, AI systems, though efficient, can inadvertently perpetuate biases or make opaque decisions which experts have told PYMNTS can hide deep flaws.
“We have to be aware of how AI is used within our organization and ensure it doesn’t introduce vulnerabilities,” David Drossman, chief information security officer at The Clearing House, told PYMNTS in August.
According to a PYMNTS Intelligence report, “Most CFOs See Limited ROI From GenAI, but Boost Its Investment,” 78% of CFOs plan to increase their investments in AI.
Against this backdrop, the goal is not to stifle innovation but to guide it responsibly.
See also: AI Turns Small Business Compliance From Cost Center to Strategic Advantage
The future belongs to proactive compliance teams that integrate seamlessly with product development, ensuring innovation doesn’t come at the cost of integrity.
One of the greatest challenges compliance teams face is the uneven pace at which regulation evolves compared to technology. Many regulatory frameworks were designed for traditional business models and struggle to address the complexities of emerging technologies. For instance, regulators are still catching up to developments in digital assets and the implications of AI systems.
In this environment, compliance teams must operate with agility. They must interpret existing regulations creatively while preparing for new rules that could fundamentally reshape their industries. The shift toward proactive compliance also requires significant investment in technology. Tools like machine learning algorithms and advanced analytics are becoming indispensable for monitoring compliance in real time.
“Using predictive analytics to anticipate changes has become an essential part of our business,” Sovos President of Revenue Alice Katwan wrote in a new PYMNTS eBook, “Beyond the Horizon: How to Identify Unexpected Threats That Could Impact Your Business.”
As technology reshapes industries, the role of compliance teams will continue to evolve. To succeed, compliance professionals must embrace technological tools, maintain a deep understanding of the regulatory landscape, and develop collaborative relationships across their organizations.
For businesses, the takeaway is clear: compliance should not be viewed as a barrier to innovation but as a foundation for it. Companies that integrate compliance into their innovation strategies from the start will not only avoid regulatory pitfalls but also gain a competitive advantage in an increasingly complex marketplace.
We’re always on the lookout for opportunities to partner with innovators and disruptors.
Learn More