Clausematch launches knowledge graph to drive digitalisation of regulation


RegTech firm Clausematch has launched a digital knowledge graph on open source in a bid to help companies consume and interpret ever-changing regulations.

On a call earlier this week, Clausmatch’s CEO Jay Likhoded explained the RegTech firm released its knowledge graph, which it has been working on for the last two years, to the public in the hope that it would help “propel the industry forward.”

Clausematch is on a mission to help companies mitigate risk, increase collaboration and improve governance cross the policy management lifecycle. When both the number and complexity of regulations is increasing, the burden on companies to monitor these changes and interpret them is significant.

A knowledge graph is ultimately a way to represent data, which is structured with many layers.

Clausematch created this knowledge graph, which was released to the public, with experts from a number of regulators and subject matter experts. Likhoded explained that this helped inform how it was structured and tagged.

Likhoded pointed out that the way regulators publish regulations today, it is in document format, such as a PDF. This is not very easy for companies to consume.

“Our goal was: how can we help companies to consumer regulations especially when the number of regulations is increasing? And the complexity of regulations is increase,” he said.

The end result, Likhoded continued, is that companies can automatically consume regulation.

The knowledge graph will become a source of digitised rules available for the use of decision automation systems.

With the help of AI models, the knowledge graph will extract the understanding of regulations and embed it in a structured, dynamic, machine-executable form. Eventually, this will enable more institutions and firms to foster greater governance practice and transparency in their daily operations being compliant by design.

Clausematch has been involved in a series of projects in this domain with financial services regulators since 2019. Thus, the FSRA of ADGM launched proofs-of-concepts in the digital regulation field where Clausematch was working on knowledge graphs and API-enabled rulebooks digitising ADGM’s crypto regulation.

Likhoded said, “Regulators need to become active advocates of a new structured approach to regulatory texts. When regulations are digital, it gives a tremendous advantage and capability to businesses to achieve an entirely new level of compliance and transparency.”

The knowledge graph is on open source here.

In November 2022, Clausematch revealed that it is re-joining the UK’s Innovation Association organisation.

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