Not following regulations is not an option. That is true not just due to the legal troubles an organization can get into due to non-regulatory compliance but also because it questions the company’s ethical integrity. However, the introduction of generative AI services and other technologies is making regulations increasingly complex, especially for the compliance team. The regulations are necessary as companies are now working with vast data volumes, working on a global scale, and are responsible for mitigating risks.
In this case scenario, the cause of the troubles also comes as a solution. Artificial intelligence is one of the major reasons that compliances are becoming stricter by the day. Generative AI services have the power to address these challenges. Compliance can be complex and require appropriate decision-making. Therefore, it can also benefit from generative AI services.
In this post, we will discuss the role of generative AI solutions in regulatory compliance.
Understanding Generative AI Services in Regulatory Compliance
Generative AI solution is a segment of artificial intelligence technologies capable of autonomously creating new content, such as text and images. It has become possible due to the development of better machine learning models like Generative Adversarial Networks (GANs), Large Language Models (LLMs), and transformers.
In case of regulatory compliance, these models can analyze vast datasets to identify patterns and create outputs that mimic human understanding.
What is the Role of Generative AI Services in Regulatory Compliance?
Generative AI solutions are responsible for automating key processes like document analysis, risk management, compliance checks, and more to ensure efficiency and accuracy of work.
In modern compliance, Generative AI solutions can help:
- Automated Routine Work: Compliance checks and document audits can be automated.
- Offer Decision Support: Provide insights and advanced analytics for early detection of issues and proactive measures.
- Improve Regulatory Interpretation: Natural language processing can scan sophisticated regulatory documents for easier interpretation.
Advantages of Generative AI Services in Regulatory Compliance
Inclusion of generative AI solutions into regulatory compliance can change the complete approach to this work. Here are the various benefits of artificial intelligence services in regulatory compliance department:
Increasing Efficiency: Using GANs and transformers allows for automation of compliance checks and document audits.
Improving Policy Alignment: LLMs and transformers help organizations align their internal policies with evolving regulatory requirements by analyzing vast legal texts and highlighting necessary modifications.
Policy Management: Generative AI streamlines policy creation and updates, ensuring consistency across documents and automating workflows for approvals and distribution.
Better Insights for Compliance: AI-driven analytics identify potential compliance risks, monitor trends, and provide real-time insights to enhance decision-making and risk mitigation.
Clarity in Regulatory Interpretation: NLP models assist in breaking down complex regulations into simpler, more actionable guidelines, reducing ambiguity and ensuring accurate implementation.
Time & Cost Savings: Automating compliance processes minimize manual effort, reduces human errors, and cuts operational costs while accelerating regulatory reporting and adherence.
Organizations that want to add generative AI services to their regulatory compliance must do it in secure, transparent, and compliant ways.
Key Factors Responsible for Generative AI Acceptance in Regulatory Compliance
The acceleration of generative artificial intelligence solutions in regulatory compliance is because of the following:
- Automates repetitive tasks, giving experts time to work on strategic initiatives.
- AI tools are becoming smarter, more effective and more accessible for compliance tasks.
- The technology is also excellent for risk detection and management with its ability to process vast datasets at inhumane speed.
- AI also offers real-time analysis and monitoring, for quick responses.
It is important to remember that inclusion of generative AI also comes with its own set of compliances. As per a study by Deloitte, 51% of organizations are taking action to establish a governance framework for using generative AI tools and applications.
How to Implement Generative AI Solutions in Regulatory Compliance?
There are three ways to integrate generative AI services into regulatory compliance:
Invest in a Bespoke In-House Generative AI Technology
A proprietary AI system created by the company to solve specific compliance issues. In this approach, you will get a custom-fit solution with greater control. However, it will cost more and take longer to implement.
Using Specific Generative AI Solutions
If you are on time constraint, then using an already available GenAI solution, created on technologies like large language models and made to work on specific compliance tasks like regulatory reporting or risk evaluation might be a better choice. These solutions are easy to adopt and quick to implement, but they might not address your custom needs as comprehensively as a custom solution.
Leveraging a Holistic Generative AI Platform
Last but not least, you can choose to get a comprehensive platform that uses foundational model, data tools, and has deployment capabilities. It does offer scalability, customization, better security, and cost efficiency. On the other hand, company will need to compromise, wait, or pay extra for specific features.
All these approaches to integrating GenAI solutions to your regulatory compliance come with their own set of benefits and challenges. Depending on your bespoke needs, one might be better for you than the other. In case of confusion, getting in touch with AI consultants might be your best choice. They can guide your next step forward in artificial intelligence adoption.
Generative AI Use Cases in Regulatory Compliance
Now, let us look at the various use cases of generative AI services in regulatory compliance:
Regulatory Monitoring:
Companies are now investing in generative AI development solutions that can track regulations in real-time. It helps them ensure that business can stay current and responsive to this ever-changing landscape.
- Continuously track legal and regulatory changes across jurisdictions.
- Assess the impact of updated regulations on organization’s procedures, policies, and operations.
- Highlight the potential regulatory changes that will impact operations.
Document Management
Generative AI platforms can also create an organized, accessible and secure repository of all documentations related to regulatory compliance.
- Automatic document classification for improved management.
- Management of multiple document versions.
- Restricted access to ensure only authorized personnel can view and modify sensitive documents.
Compliance Training
Keeping employees well-informed and compliant needs appropriate training and generative AI services can assist with that as well.
- It can create personalized training models for specific regulatory updates.
- Moreover, organizations can use the platform to track progress and success of training programs.
- Lastly, it can add employee feedback to improve training.
Automated Regulatory Reporting
Timely and accurate documentation of regulatory compliance is easier to generate, customize, and distribute with bespoke generative AI solution.
- Compliance report generation for both external and internal use.
- Option to create custom reports based on bespoke needs to improve clarity and relevance.
- Addition of visual charts and graphs along with automated distribution to relevant stakeholders.
Risk Assessment & Fraud Detection
Generative AI solutions can also identify, evaluate, and mitigate potential risks by automating tasks like risk detection, prioritization, mitigation, and continuous monitoring.
- AI models analyze transaction patterns to detect anomalies and potential fraud.
- Enhances due diligence and reduces financial and legal risks.
- It can offer rank risks based on the chances of their occurrence and their impact on the organization.
These are only some of the varied applications of generative AI in regulatory compliance. Other sectors of regulatory compliance where generative AI services can come in handy are
- compliance auditing,
- third-party management,
- policy development and management,
- licensing and certification processes,
- incident management,
- data privacy management,
- change management,
- contract compliance, and more.
How GenAI is actually being used will depend on the needs of the organization. To learn how you can use artificial intelligence business solutions for the regulatory compliance department, getting in touch with AI experts might be the best way to start.
Expected Future Trends of Generative AI in Regulatory Compliance
Generative AI services are proving to be an excellent tool for regulatory compliance industry. Therefore, it is expected that the adoption of technology will only increase in the future. Here are some of the emerging trends that we will see soon:
- Increased Automation: Use of AI to automate routine compliance tasks like regulatory reporting and documentation creation will only increase in the near future.
- AI-powered Regulatory Intelligence: From monitoring global regulatory updates in real-time to predicting what the organizations will need to prepare for upcoming compliance changes, everything will be possible with GenAI solutions.
- Better Risk Management Using Predictive Analytics: Generative AI for predictive analytics and scenario simulations will take risk management efficiency to new heights.
- Explainable AI for Compliance: As compliance relies on transparency, the generative AI models being used for it will also need to be transparent, traceable, and auditable.
Human and AI Collaboration: Use of AI in compliance will only increase from here, allowing experts to focus on complex decision-making and strengthening governance, risk, and compliance (GRC) frameworks.
Generative AI Services – Making Regulatory Compliance Easier
Use of generative AI services in regulatory compliance comes with a range of applications and benefits. Therefore, several businesses are investing in AI technology. It does not mean removal of human resources as a hybrid approach is necessary to maintain compliance integrity. However, it does mean more work can be done using fewer resources.
Strategic integration of generative AI services into regulatory frameworks can help businesses foster a culture of compliance. If you would like to learn how your business should add artifiical intelligence solutions to their operations, get in touch with AI consultants today. They will help you find the most appropriate ways to include AI to address your biggest pain points, while ensuring minimal learning curve.