Compliance is slowly but steadily benefiting from artificial intelligence. AI and automation technology are being used by businesses of all sizes to better handle compliance disclosures and ethics training.
AI’s involvement in compliance will rise considerably over the next decade as systems evolve and companies seek to boost efficiency and decrease reputational and legal risk in increasingly complicated regulatory and social situations. Compliance professionals will gain not only from the data AI provides, but also from the time saved by the handling of hectic tasks by technology.
AI is currently being utilized to evaluate compliance training data and identify users who may require additional learning and resources, and then adjust the reinforcement learning experience to each employee automatically. This frees compliance specialists from combing through training results—which could be in the hundreds of thousands depending on the company’s size—and generating hundreds of different reinforcement solutions, reducing human error and deployment complexity.
AI in compliance will eventually progress from base analysis to predictive integration. Systems will be able to flag high-risk departments as compliance risks using a combination of disclosure reports, training data, and chatbots. This will lead to stricter compliance processes—such as automatically updating policies—to limit the risk. AI will detect risks that compliance experts won’t have time to notice, even if the risks are months or years in the future and miles away from the remote office.
Data is required for AI models for compliance processes, just as it is for any other AI model. The next step in integrating AI and automation into compliance will be to bring that data together. Business operations will be transformed in the same way that marketing has been transformed in the last decade by predictive intelligence.
The data must demonstrate not only whether people are struggling, but also why they are struggling, in order to provide truly actionable risk information. This is why, in the coming decade, human behavioral data will be so important. What do employees say to the hotlines where they report incidents? What simulations in training modules do people have a hard time navigating? What are the common denominators that appear in disclosure reports over and over?
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Overworked compliance teams may be unable to connect the dots from the data they get manually. Digital technology makes it easier to spot patterns, which in turn informs GRC strategy like never before. Data from numerous compliance technologies within the company will need to feed into a centralized system before that can happen on a large scale. More tools are likely to emerge to facilitate this convergence and allow AI to reach its full potential.
Addressing the Challenges
A genuine concern with AI in business compliance is that it is being used to replace decisions that have been made by humans for decades. In addition, for ethics and compliance experts to embrace AI, they must move beyond these valid compliance and ethical concerns.
As witnessed with hiring practises and other AI-assisted decisions that accidentally breached regulatory requirements, if the data going in is biased, the recommendations coming out may be as well. Because compliance teams are so concerned with not breaking rules, AI automation may appear to be a risk. Compliance teams also face challenges when it comes to data privacy protections.
To prevent these issues, businesses should carefully examine their data generation tools for response bias and use behavioral data directly rather than passing it via an interpretation or machine learning layer, minimizing the risk of bias and other ethical consequences.
In the end, AI will not replace compliance teams, but it will assist them in doing their duties more efficiently. To establish strategy and reduce risk, GRC professionals will have the most up-to-date information at their fingertips. Organizations will be better able to anticipate challenges before they rise with AI’s support, reducing compliance emergencies.