Revolutionizing Compliance: The Power of AI in Streamlining Regulatory Change Management

Revolutionizing Compliance: The Power of AI in Streamlining Regulatory Change Management

The Challenge The contemporary business environment demands a relentless commitment to regulatory change management and compliance.  With nearly 30 million regulatory changes occurring each year globally, organizations are given the near-impossible and arduous task of identifying, navigating, and complying with countless new and changing regulatory requirements. It is particularly challenging to keep a changing business environment aligned with a changing regulatory environment. To make matters worse, failure to abide by current regulations can have extremely damaging consequences for any given organization. In 2023, the SEC alone fined financial institutions around $5 billion for compliance failures - a 6.1% average increase since 2021.

With stakes so high, organizations are given no other option than to maintain effective compliance and quickly adapt their programs to changing environments. They must answer the fundamental question: What laws, rules and regulations are changing and how does this impact my business – from processes and policies through to procedures and controls?  

Despite the growing importance of maintaining effective compliance, organizations continue to rely on outdated and time-consuming practices. Too many organizations still deploy the use of manual processes such as spreadsheets and emails with scattered fragments of regulatory research for identification and verification. This approach is extremely problematic as the time and effort needed to conduct analysis, which is becoming increasingly complex, can result in wasted money, misinterpretation of regulatory requirements, as well as errors or gaps within the organization’s compliance framework and rule book.  

Because of this, organizations are turning to new methods of analysis to manage their regulatory change management needs. With the exponential growth of technological advancements, organizations are finding that relying on technology and AI (artificial intelligence, in particular, large language models and deep learning) is the best approach to staying on top of regulatory change in a dynamic business.  

The Solution

The evolution of technology has offered a lifeline for organizations grappling with the growing complexity of their regulatory requirements. AI is emerging as a transformative force, presenting a paradigm shift in how organizations can not only meet but surpass their compliance requirements and obligations.  

Leveraging AI is becoming the breakthrough that organizations need to manage changes to their compliance obligations effectively and efficiently, providing a plethora of services to expedite previously manual processes:

• Analyzing large amounts of data quickly. AI can quickly process massive amounts of regulatory data and information while extracting critical information and identifying fundamental changes that impact the organization specifically, in terms of processes, policies, procedures, controls as well as emerging risks. This gives much earlier warning signals, allowing the organization to act long before the regulation risks becoming an examination finding.

• Monitor regulatory updates. AI can also monitor thousands of regulatory bodies around the globe and quickly notify the relevant compliance team and subject matter experts in the event of a change impacting their business.

• Map the impact of change with a high degree of accuracy. An AI-powered with deep learning capabilities, can objectively read a volume of information in minutes, parsing, categorizing and mapping information in laws, rules and regulations to an organizations’ business processes, policies and controls, among other elements. Without technology to crunch through this analysis, individuals responsible for keeping up with the regulatory change can miss critical information as they scan thousands of pages of regulation and legal updates. Organizations need to leverage AI to ensure that no information is missed or forgotten, and the impact of changes is thoroughly and accurately understood.  

Summary

Leveraging AI marks a watershed moment for organizations seeking a proactive and efficient approach to regulatory change management programs. AI-powered regulatory change management offers an array of capabilities that can streamline compliance efforts and out-of-date processes. As regulatory requirements burgeon, and penalties become more severe, maintaining effective compliance is no longer a choice but an absolute imperative within the contemporary business world. Fortunately, with new advancements in AI technology, organizations and their relevant subject matter experts now have the tools they need to greatly expedite regulatory change processes while greatly reducing compliance risk exposure. The integration of AI into regulatory change management not only ensures comprehensive coverage but also allows organizations to navigate the intricate regulatory environment with confidence.  

The era of manual, error-prone regulatory change processes is giving way to a new era of efficiency, accuracy, and proactive risk mitigation, driven by the unprecedented capabilities of artificial intelligence.

Summary Insights and More Resources on this topic

AI tools give compliance teams an advantage in managing regulatory change management programs. They enable organizations to thrive in a dynamic business environment and teams to connect and map changes to regulatory information.  They can, in days rather than weeks, draw conclusions, and take confident action in addressing changes that impact their organizations’ processes, policies, controls and risks.  By leveraging the power of AI, organizations can streamline their regulatory change management efforts, ensuring a more secure, compliant and stable future.

4Crisk products: Regulatory Research, Compliance Map, Regulatory Change are revolutionizing the way organizations connect regulations with their business requirements.

Would you like a demo of 4Crisk products?