A Large Language Model (LLM) is a type of artificial intelligence designed to understand and generate human language by analysing vast amounts of text data. These models, such as OpenAI's GPT, use deep learning techniques to process language patterns, enabling them to perform various tasks, including translation, summarisation, and text generation.

In the context of anti-money laundering (AML) and financial crime compliance, LLMs can significantly enhance analytical capabilities. They can assist institutions in processing and interpreting large volumes of unstructured data, such as transaction records and communications, to identify potential indicators of suspicious activities. By automating the detection of anomalies or patterns that suggest money laundering or fraud, LLMs help compliance teams operate more efficiently and effectively. Moreover, these models can support ongoing monitoring and reporting processes, contributing to a more robust and proactive approach to financial crime compliance.