GRC 20/20’s latest research examines the role of AI in reshaping regulatory compliance within the financial services industry.
Their report, titled “Delivering the AI Enabled Regulatory Change Lifecycle,” provides a comprehensive analysis of The Ascent innovative AI-based compliance automation solution.
Financial institutions are currently grappling with a wave of regulatory change. The report reveals a staggering increase in regulatory updates, which have doubled in the last five years. However, compliance teams are struggling to keep up due to stagnant capacity.
The report highlights that most compliance teams are not adequately equipped to effectively manage the proliferation of regulatory changes. Challenges include inadequate staffing, lack of expertise, and reliance on outdated manual processes that lack essential features such as accountability, audit trails, and effective reporting mechanisms.
Artificial intelligence is positioned as an essential tool to address these challenges. The report presents several approaches based on artificial intelligence:
- Automated monitoring: AI algorithms that continuously monitor regulatory updates, filtering out irrelevant information.
- Natural Language Processing (NLP): AI tools that dissect regulatory texts and identify relevant clauses.
- Predictive analysis: Machine learning models that predict the implications of upcoming regulatory changes.
- Workflow Automation: Automating compliance workflows with AI.
- Risk assessment: Integrating AI into broader compliance risk management strategies.
- Audit trail and reporting: AI tools maintaining a complete, real-time audit trail for regulatory activities.
Want to know more? Read the full article here.
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