Regulatory agencies all over the world are busy at work, with over 300 million new regulations expected in the coming decade. Firms are expected not only to comply, but to be transparent in how they are doing so, with regulators frequently reviewing audit trails, controls, policies, and relevant workflows. Due to the fact that most firms are subject to multiple regulatory frameworks, maintaining compliance can be a complex and costly endeavor.
As regulations change, your company must deploy additional resources to understand the relevant rules in order to develop the appropriate workflows. This process can take hours of manual work while still leaving your organization subject to misinterpretation and regulatory gaps.
According to Corporate Compliance Insights, regulators charged banks with $15B in fines in 2020, with US banks accounting for 73% of those fines. Yet despite the potentially high cost of compliance errors, many companies still rely on spreadsheets and manual verification to maintain regulatory compliance, and some companies that are leveraging technology still use manual resources to capture, dissect, and update regulatory developments.
Artificial intelligence (AI) has the ability to process large volumes of regulatory data quickly and accurately. This technology can support your organization to better understand regulatory developments and quickly take the necessary actions in order to maintain compliance.
Leveraging AI for Regulatory Compliance
It can take hours, and a lot of your team’s bandwidth, to parse through and analyze regulatory documents to assess what applies to your organization and consider the process changes that need to be developed.Besides being costly, this approach can lead to errors or omissions, which may result in your organization incurring fines. With the systematic approach of AI, regulatory compliance can be done efficiently and accurately.
AI can track what agencies around the world are doing, keeping the relevant teams current on required changes. Using AI, your firm can take a systematic approach to monitoring and maintaining regulatory requirements, so you can be confident in your compliance practices. In addition to staying up to speed on developments, AI can filter through the massive amount of data and identify the specific requirements applicable to your organization, assess gaps in your existing processes and workflows, and even recommend or enact changes so you can quickly adapt.
Rather than poring through regulatory announcements, your team can spend valuable time on more strategic work. Using AI to take the guesswork out of regulatory developments frees your organization to be proactive instead of reactive when it comes to regulatory compliance, giving your team more time to understand evolving markets and explore new regions, services, or products.
How LogicGate Can Help with Regulatory Compliance
LogicGate has partnered with Ascent, a pioneer in AI-driven regulatory knowledge automation, to create Risk Cloud's Regulatory Compliance Powered By Ascent Application. This Application takes the guessing game and manual work out of your compliance program. With access to over 125 regulators and fueled by AI that delivers obligations and rule changes targeted to your firm, this pre-built Application gives you confidence that you have eliminated all regulatory gaps in your process. Automatically reducing thousands of regulations down to a manageable size allows your teams to supercharge their productivity, be more accurate, and pivot to more strategic work.