KYC Automation vs. Manual Review for SME Onboarding

We've been scaling up our fintech platform pretty aggressively, particularly with SME clients across a few different EU jurisdictions. While our automated KYC solution handles most individual onboarding seamlessly, we're finding that the nuances for smaller businesses, especially sole proprietors or very new entities, still require a fair amount of manual review from our compliance team. The false positive rate on red flags, or conversely, the subtle flags that the automation misses for certain business structures, is higher than anticipated.

I'm curious to hear how others are balancing this. Are there specific points in the KYB process where you find automation consistently falls short for SMEs, necessitating manual intervention? And what metrics do you use to determine when a case needs to be escalated beyond the automated checks?