Compliance-as-a-Service Frameworks Using AI for Real-Time Risk Intelligence in Decentralized Financial Systems

The rise of decentralized financial systems (DeFi) presents both unprecedented opportunities and critical regulatory challenges, particularly in ensuring compliance, transparency, and risk mitigation in real time. This paper reviews the emerging paradigm of Compliance-as-a-Service (CaaS) frameworks integrated with Artificial Intelligence (AI) to provide scalable, real-time compliance monitoring and risk intelligence across distributed financial ecosystems. It explores how AI technologies such as machine learning, natural language processing, and knowledge graphs enable automated detection of non-compliant behavior, smart contract auditing, fraud detection, and adaptive regulatory reporting. Special attention is given to the architectural design of AI-enabled CaaS platforms, their interoperability with blockchain-based systems, and their capacity to address challenges posed by jurisdictional fragmentation, pseudonymity, and data privacy. Furthermore, the paper examines current implementations, industry trends, and regulatory innovations shaping the future of CaaS in DeFi. The review concludes by identifying research gaps and proposing a roadmap for developing trustworthy, transparent, and explainable CaaS infrastructures to enhance financial integrity and regulatory agility in decentralized environments.