Risk Manager + AI: Alt Data's AI-Driven Surge, Trend Micro Bringing AI to Cybersecurity, AI Regulation: A Tale of Two Continents

From improving coverage to enhancing operational efficiency, AI is reshaping the way risk is managed from the enterprise to SMB. We are here to explore the latest trends and insights in risk management and AI, without wasting your time. What you need to know today, nothing more. Find more on our site. 

• IT Supply Chains and the Overlooked Front in Risk Management

• Alt Data's AI-Driven Surge

• AI Meets Cybersecurity: Trend Micro's Bold Move

• AI Regulation: A Tale of Two Continents

• Taktile's $54M Bet on AI for Risk Management

IT Supply Chains and the Overlooked Front in Risk Management

IT supply chains are often left on the sidelines when companies draft risk management strategies. While production chains get the spotlight, IT supply concerns are frequently under-prioritized. The gap can leave businesses vulnerable to significant disruptions if not addressed.

- 75% of companies include production supply chains in risk plans.

- Only 40% do the same for IT supply chains.

- 60% of IT disruptions are linked to supply chain issues.

Why It Matters: Ignoring IT supply chains in risk management can lead to unforeseen disruptions, impacting business operations and financial performance.

What's Next: Firms must reassess their risk management frameworks to better integrate IT supply chain considerations. Expect a rise in tools and technologies aimed at safeguarding these overlooked areas. Read More

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Alt Data's AI-Driven Surge

Alternative data is gaining momentum as AI continues to transform industries. Investors and companies are leveraging this data to make smarter decisions, improve client retention, and drive higher returns. With AI tools becoming more sophisticated, the role of alternative data is expected to grow even further.

- 89% of financial services firms report using alternative data.

- 70% of firms say alternative data leads to better investment decisions.

- $11 billion projected market size for alternative data by 2026.

What is Alt Data? Alternative data is data gathered from nontraditional sources. For instance, investors might consider looking beyond company filings and what brokers say to get an edge in the market through supplier metrics, macro trends, etc. That’s alt data.

Why It Matters: Alternative data offers businesses a competitive edge in decision-making and risk management.

What's Next: According to a recent survey from Lowenstein Sandler, expect more firms to invest in AI tools that can handle and analyze alternative data. This trend is likely to drive innovation in how data is sourced and utilized, shaping the future of industries reliant on data-driven strategies. Read More

AI Meets Cybersecurity: Trend Micro's Bold Move

Trend Micro just rolled out a groundbreaking AI-driven solution to tackle cybersecurity threats head-on. Trend Cybertron is a specialized cybersecurity large language model (LLM) designed to predict and prevent threats across an organization’s entire attack surface in any environment. By integrating AI with cyber risk exposure management, Trend Micro is offering its customers a way to stay ahead of potential threats.

By the Numbers:

- Trend Micro serves over 500,000 organizations globally.

- The cybersecurity market is poised to reach $403 billion by 2027.

- AI in cybersecurity is expected to grow at a CAGR of 23.3% from 2020 to 2027.

What They're Saying:

“Trend is building a cybersecurity AI agent unlike any other. We’re bringing together a massive quantity of the highest-quality data in the industry to supercharge our capabilities and make it easier than ever for customers to proactively manage their cyber risk. Our customers and partners are already seeing reduced costs and improved security posture.” - Trend Micro CEO Eva Chen

Why It Matters: AI integration in cybersecurity is crucial as threats become more sophisticated, providing businesses with advanced tools for defense.

What's Next: Trend Micro plans to refine this AI technology further, enhancing predictive capabilities. They aim to expand partnerships to broaden the reach and impact of their cybersecurity solutions. Read More

AI Regulation: A Tale of Two Continents

AI is reshaping industries globally, but regulations vary widely between the U.S. and Europe. As both sides of the Atlantic grapple with compliance, companies face the challenge of navigating these uncharted waters. The implications for risk management are profound, requiring adaptive strategies to align with evolving standards.

By the Numbers:

- Over 100 AI regulatory frameworks have been proposed globally.

- The European Union's AI Act could affect 27 member states.

- U.S. federal regulations are anticipated within the next 2 years.

Why It Matters: Understanding these regulations is crucial for businesses to stay compliant and competitive in a rapidly developing AI landscape.

What's Next: Companies will need to invest in robust risk management systems to handle varying compliance requirements. Expect more cross-border collaborations and dialogues to harmonize AI standards and best practices. Read More

Taktile's $54M Bet on AI for Risk Management

Taktile just grabbed $54 million in funding to boost its platform, empowering risk experts to harness AI in decision-making processes. The idea? Let the pros steer AI adoption, even in heavily regulated sectors like financial services. This funding round signals a growing confidence in tech that gives control back to the insiders.

By the Numbers:

- $54 million raised.

- Targeting businesses in highly regulated sectors.

- Expanding AI capabilities with expert oversight.

What the CEO Said: “While AI has been broadly adopted for use cases such as chatbots in customer support and real-time personalization in marketing, mainstream automation for high-stakes decisions is just about to break through in 2025. The main difference in applying AI to risk decisions in financial services, such as credit underwriting, account opening, or transaction monitoring, is that errors are extremely costly. Wrong decisions can result in costly loan defaults, fraud losses, preventing good customers from accessing services, or compliance fines by regulators.”

Why It Matters: As AI becomes ubiquitous, ensuring that industry insiders have control is critical to mitigating potential risks.

What's Next: Taktile plans to expand its platform and outreach, aiming to partner with firms where regulations are tight but AI potential is vast. Expect them to use this funding to innovate and refine their approach, offering more tailored solutions for risk management. Read More