In the ever-turbulent world of compliance, where the mesh of complexity can often feel stifling, the emergence of artificial intelligence (AI) offers a tantalising gust of fresh air.
Because AI is not just a word du jour in the tech world; its implications ripple across industries in ways we’re still unpacking. Compliance is one of them.
Think about it: not too long ago, the idea of using generative AI was almost whimsical, an academic sharing how machines can write bad poetry. Today, AI has the potential to be at the very heartbeat of what we do, enlivening risk and compliance processes.
Now, history tells us compliance has always been, well, a stickler for playing safe. And who could blame you? It’s part of the job.
But while there are reasonable hesitations around open-source AI platforms like ChatGPT – hallucinations being the main source of concern – AI models created expressly for compliance, governance, and risk, are different beasts altogether.
They’re designed to allay the typical anxieties about weaving AI into your daily work life. They work on a level where we, as compliance professionals, can boost not only our own team’s productivity but compliance across the business, too.
Why Generative AI is so useful for Compliance
For those unfamiliar with the intricacies of technology and compliance, the idea of using generative AI in this field might seem like something pulled from a science fiction novel. Yet, dig a little deeper, and it’s clear we’re not just speculating about some distant future.
At its core, compliance is deeply rooted in text and rules. It hinges on the careful interpretation of text-based directives and guidelines. The expertise required to navigate this domain means that a comprehensive understanding of compliance, legal matters, regulatory issues, and associated risks has often been confined to a select few, making it a costly affair.
The modern strides in AI have shown a particular interest in text. The breakthroughs aim to democratize content by making it more digestible. Here are three outcomes:
- It can understand, analyze, and simplify complex documents. This leads to efficient summarizations and highlights crucial compliance information.
- AI’s capability to generate policy text is revolutionary. In sectors that require bulk production of precise text, AI offers a swifter, simpler, and more cost-effective solution.
- Improvements in AI’s ability to understand text can lead to better communication between chatbot software and users. As AI becomes better at interpreting language, these applications become more effective and valuable.
Given these points, AI emerges as a formidable tool in scenarios where there’s a need for large-scale text interpretation, generation, and human-text interaction.
In the realm of compliance, this applies to almost every segment. The beauty of generative AI lies in its ability to decipher rules from dense texts and render them intelligible, tapping into the latent potential within policies, and creating content rooted in reality.
Leveraging AI in Compliance: the case of gift and hospitality policy
Gifts and hospitality policy: a topic we’re all familiar with.
For compliance professionals, at least. According to Gartner’s Legal Technology Predictions Through 2025, 42% of employees don’t recall their company’s gift and hospitality policy.
Typically, within an organization, employees do have some general understanding and may even have access to more detailed knowledge through platforms like intranets or training courses.
Yet, when faced with a specific scenario, they often prefer to just ask someone for the answer. They want clarity. And let’s face it: sifting through policy documents can be tedious.
So, the default? They ping the compliance team or, if they’re familiar with you, drop you a personal email. This throws a few tasks on your plate: discerning the situation, crafting a response, possibly asking follow-up questions, and then logging that you’ve given guidance.
Enter AI, the game-changer. Modern platforms, such as generative AI tools like BRYTER’s Policy AI, transform static policies into dynamic, interactive tools. Upload the policy, and the system deciphers its rules and definitions. Depending on the context, it can:
- Aid the compliance team in framing a response, much like a virtual assistant.
- Integrate with your email, like Microsoft Outlook, drafting replies based on the queries received.
- Position itself as a chat system, offering employees the chance to find answers on their own, in real-time. If you’ve ever tried to make chatbot work, and failed, this is the time to have another go with technology that actually works.
The result? Policies evolve into on-demand digital consultants available around the clock.
Plus, every query and reply gets logged, ensuring compliance teams remain in the loop. It’s all about making compliance accessible and efficient.
More potential AI use cases for Compliance
Beyond gift and hospitality policies, AI’s potential in the realm of compliance is brimming with promise. Here’s a peek into what the near future might hold:
- Demystifying regulations: Compliance teams often grapple with vast regulatory content, searching for specific details. AI offers them an efficient compass, swiftly navigating through these oceans of text to pinpoint answers.
- Simplifying questionnaires: Think of the monotonous, yet essential tasks – like filling out routine forms in procurement, tech assessments, or due diligence. AI can shoulder this burden, automating these tasks without compromising on the nuanced human touch.
- Revolutionizing audits: Internal investigators frequently dive into a sea of documents, drawing links between varied policies, regulations, and legal content. With AI, they can swiftly cross-reference numerous documents, streamlining the investigative process.
- AI-assisted email responses: Despite our digital age, emails remain a primary communication channel. For experts, this often translates to a flood of repetitive queries. Enter AI: it not only quickens response times with AI-assisted draft replies but also offers intelligent suggestions to further aid the expert.
- Conversational compliance: Imagine chatbots that don’t just answer but truly understand and guide users about compliance across diverse languages. It’s not sci-fi; it’s the next step in compliance communication.
In essence, we’re on the cusp of a revolution where AI doesn’t just assist but actively elevates the world of compliance. The horizon looks more than promising, especially when we consider the specific regulation-based use cases.
Challenges of AI in Compliance
While AI promises to be a game-changer in the realm of compliance, it’s not without its wrinkles.
However, it’s important to remember that not all tools are created equal. Some compliance-specific generative AI tools like BRYTER’s PolicyAI, overcome these challenges. But not all do.
That aside, let’s delve into some of the potential challenges that might keep compliance experts like you up at night:
- The unpredictability quandary: Some AI models operate on probabilistic principles, which can be a tad fickle. They don’t always guarantee predictability. On occasions, they might dish out erratic responses or ‘hallucinate’ due to insufficient data. While they might be on the mark sometimes, there’s no guarantee of consistent accuracy.
- The ‘black box’ dilemma: Many AI systems operate in stealth mode. Deciphering their decision-making process is akin to peeling an onion with infinite layers. For a sector that thrives on transparency and traceable rationale, this poses a major roadblock. There’s a pressing need for clear documentation and traceable reasoning, especially when audit trails and collaborative reporting come into play.
- The customization conundrum: Tailoring AI models isn’t a walk in the park. Specific modifications often demand significant resources. The challenge? Ensuring the AI system aligns with the unique needs of compliance without an exhaustive technical configuration process. A glimmer of hope lies in emerging hybrid systems that blend probabilistic reasoning with set rules, but these are still few and far between.
- The learning curve: Incorporating AI into the workplace isn’t a mere plug-and-play affair. It demands an understanding of its capabilities, limitations, and functioning. This calls for dedicated learning and continuous education around this transformative tech.
In essence, while AI brings a bouquet of possibilities to the compliance table, it also serves a side of challenges that demand thoughtful navigation. It’s a brave new world out there, so choose wisely when you’re evaluating AI tools.
The age of intelligent Compliance
Compliance teams can, quite frankly, sometimes find themselves caught on the back foot. As we discussed, there are good reasons for this.
But that’s not to say it should remain that way.
Generative AI tools like BRYTER’s PolicyAI aren’t just new tools hyped to the nth degree; they’re a compass that can help us navigate the often-labyrinthine world of compliance. And they overcome some of the challenges we discussed in the previous section.
Let’s break its potential impact down into five key points.
- Instant replies to compliance questions, anytime, anywhere: With PolicyAI, the era of your employees waiting with bated breath for a compliance response is long gone. Upload your policies into your own secure Policy Domain, and voilà! Instant, laser-focused replies to all your, and your employees, compliance questions.
- Helps you spot and fix compliance gaps: Half of compliance mastery is in identifying where you’re falling short. By asking the chatbot interface your most critical compliance questions, PolicyAI lets you not just identify but also fine-tune your processes.
- Gives you a complete audit trail: Every query and every response are meticulously chronicled by PolicyAI, giving you a full audit trail.
- AI built for Compliance: BRYTER’s PolicyAI isn’t your run-of-the-mill AI. It’s tailored specifically for the nuances and challenges of compliance. And because it’s built using your own policy documents, there’s no chance of the AI wandering off-script, hallucinating, and giving you or your employees false answers.
- Confidentiality at its core: Trust and security are critical for compliance teams. That’s why PolicyAI gives you Fort Knox-level security. Housed within our own Azure cloud in the EU with full SOC 2 Type II and ISO27001 certifications.
A final note
The evolution of AI, especially within the domain of compliance, governance, and risk, is nothing short of breathtaking.
What once lay within the pages of science fiction has emerged as a tangible solution, albeit with its fair share of intricacies and challenges.
The momentum AI brings to compliance is about more than just efficiency; it’s about reimagining the very essence of how we interpret, adhere to, and evolve with the rules that govern industries.
However, as with any innovative leap, due diligence is paramount. It’s vital to recognize and address the potential pitfalls while celebrating the advantages AI brings.
Equally crucial is the human touch, the expertise and intuition that professionals bring to the table. While AI will undoubtedly enhance and streamline operations, human oversight will ensure that the use of AI remains grounded, ethical, and most importantly, compliant.
The era of intelligent compliance isn’t just dawning – it’s here. And it beckons us to be both excited and cautious as we navigate this transformative journey.