Two-thirds of senior compliance professionals in UK estate agencies are exploring artificial intelligence for client due diligence processes, but implementation remains limited, according to new research from anti-money laundering platform Thirdfort.
The Agents of Change report found that 68% of compliance leaders said their companies are researching, trialling and exploring how AI could be integrated into client due diligence (CDD) processes. However, only 6% have embedded AI into their operations, whilst 2% reported no AI use at all.
Compliance pressures mount
The findings come as 85% of senior compliance leaders surveyed reported increased demands on their compliance functions over the past 12 months. The rise in regulatory requirements follows broader challenges facing the sector, including digital banking complications affecting property transactions and mounting tax burdens on landlords.
The research identified several barriers preventing wider AI adoption in client due diligence. Data security and General Data Protection Regulation compliance topped the list of concerns, followed by regulatory uncertainty and skills and knowledge gaps amongst staff.
Current AI applications
Where AI is being used in property firm compliance, the most common applications include drafting documentation, summarising regulations or documents, identity verification, risk assessment and creating training resources.
Olly Thornton-Berry, co-founder and chief executive of Thirdfort, commented: “Despite growing pressure on law firms and estate agent compliance teams, our research shows that AI adoption is still at an early phase. However, using AI effectively can reduce the burden of routine client due diligence tasks, allowing compliance professionals to focus their time and expertise on the more complex cases.”
The slow uptake of AI technology in property compliance contrasts with broader challenges facing the UK property sector, where agents and landlords are navigating regulatory changes and market uncertainty. The research suggests that whilst interest in AI solutions is widespread, practical implementation will require addressing concerns around data protection and regulatory frameworks before adoption becomes mainstream across the industry.
