Smarsh has reported a 77% reduction in compliance reviewer workload following its multi-year strategic collaboration agreement with Amazon Web Services (AWS), with less than 2% loss in risk detection.
The agreement, launched in October 2025, has enabled a leading global investment bank to significantly cut manual review burdens across millions of alerts while improving performance across both lexicon and machine learning models. The collaboration also accelerated model agent development and enhanced the overall effectiveness of compliance programmes, according to the company.
The arrangement is designed to help financial institutions move AI from pilot projects into enterprise-wide deployment by meeting the governance, risk management, and compliance demands of heavily regulated markets. Smarsh solutions are available through AWS Marketplace, enabling firms to accelerate deployment and draw on existing AWS investments.
Smarsh transforms how financial organisations handle communications data, converting static archives into active intelligence resources for compliance, legal, and surveillance functions. Its suite of tools includes Intelligent Agent, which the company says can reduce surveillance review volumes by up to 77% and identify three to five times more genuine risks across multilingual communications. Discovery Agent is designed to speed up legal case assessment and cut investigation costs by up to 75%, while Noise Reduction Agent targets smaller firms, aiming to reduce compliance alert volumes by up to 60%.
Private equity firm K1 Investment Management, a Smarsh customer, reported a 50% reduction in false positives after adopting the company’s AI Noise Reduction capability, which is built on AWS Bedrock.
Smarsh chief strategy officer Goutam Nadella said, “Financial institutions do not need more AI experimentation—they need trusted, auditable outcomes. The biggest barrier to enterprise AI adoption in financial services has been governance and compliance risk. Through our collaboration with AWS and our foundation on Amazon Bedrock and Amazon Bedrock AgentCore, we are removing that barrier, proving firms can achieve transformational efficiency gains while maintaining the high standards regulators expect.”
AWS general manager, US ISV sales, Carol Potts said, “At AWS, we believe regulated industries shouldn’t have to choose between innovation and compliance. Smarsh has shown what’s possible when you combine deep domain expertise with the scalability of AWS, delivering compliant AI solutions that financial institutions can deploy with confidence. We’re proud to collaborate with customers who are setting a new standard for responsible AI adoption.”
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