Gambling Commission director of enforcement and intelligence John Pierce has issued a stark warning that AI-powered compliance systems are failing operators when it matters most.
Speaking at the Gambling Anti-Money Laundering Group (GAMLG) Conference in London, Pierce told delegates that AI tools were “too often” not meeting anti-money laundering standards required by the regulator.
Pierce was clear that the Commission is not opposed to the use of AI and new technologies for AML purposes, but stressed that operators must confirm effectiveness before any rollout.
“We aren’t ideologically against the use of new technology in your processes,” he said. “But you need to be sure they are doing what is required and the evidence we’ve seen so far is too often they simply aren’t delivering.”
He added: “If your business is considering this type of approach, make sure it’s delivering compliance before you launch it. We have seen improvements but there is more to do.”
Pierce’s comments came just weeks after the Commission expressed support for the Advertising Standards Authority’s use of AI to identify gambling adverts likely to appeal to under-18s.
That endorsement demonstrated confidence in AI for targeted applications, but Pierce made clear it should not be interpreted as blanket approval for AI-driven regulatory compliance tools.
Beyond AI, Pierce outlined a broader pattern of recurring AML failings across the gambling sector that the Commission has identified through its enforcement work.
These concerns included inadequate oversight by personal management licence holders, insufficient staff training, and operators placing excessive reliance on automated processes and financial thresholds when assessing customer risk.
On the issue of personal management licences, Pierce issued a direct challenge to senior individuals, warning the regulator had identified cases where PML holders lacked sufficient oversight of AML controls.
“I think it’s fair to say we have been getting tougher on PMLs at the Commission in recent years,” he said. “This ought to be a wake-up call to anyone with a PML to make sure you are on top of this stuff.”
Pierce also warned against over-reliance on financial thresholds as the primary trigger for customer reviews, saying this approach leaves operators exposed to regulatory action.
“[Financial thresholds] are not always appropriate for the business and the customer and failing to adequately risk profile customers before they reach these financial thresholds can and does land operators in trouble,” he said.
Looking ahead, Pierce revealed the Commission expects to publish an updated money laundering and terrorist financing risk assessment in July, which will address vulnerabilities across different sectors.
An updated emerging risks bulletin is also planned for the autumn, designed to give operators further guidance and ensure ongoing regulatory compliance across the industry.
“We want to work with industry to help you get this right,” Pierce said. “Whenever you have questions, we would rather hear them first than find out you’ve made mistakes later.”
This year’s GAMLG Conference, hosted by the Betting and Gaming Council with support from GAMLG, brought together representatives from the Home Office, National Crime Agency, HM Treasury, and fraud prevention service Cifas.
Keith Bristow, formerly director general of the National Crime Agency, urged the industry to continue sharing intelligence and good practice to “keep crime out of gambling” as compliance standards evolve.
Alex Roberts, director of policy at the BGC, said: “Raising standards is at the heart of the BGC’s work. The conference provides an invaluable opportunity for operators, regulators, government and law enforcement to share expertise and work together to tackle financial crime.”
