The latest research by GRC 20/20 delves into the role of AI in reshaping regulatory compliance within the financial services sector.
Their report, titled “Delivering the A.I. Enabled Regulatory Change Lifecycle,” offers a comprehensive analysis of Ascent’s innovative AI-enabled compliance automation solution.
Financial institutions are currently grappling with the surging tide of regulatory changes. The report reveals a staggering increase in regulatory updates, doubling over the past five years. Compliance teams, however, are struggling to keep pace due to stagnant capabilities.
The report highlights that most compliance teams are ill-equipped to efficiently manage the surge in regulatory changes. Challenges include inadequate staffing, lack of expertise, and reliance on outdated, manual processes which lack vital features like accountability, audit trails, and effective reporting mechanisms.
Artificial intelligence is positioned as a crucial tool in addressing these challenges. The report outlines several artificial-intelligence driven approaches:
- Automated Monitoring: AI algorithms that constantly monitor regulatory updates, filtering out non-pertinent information.
- Natural Language Processing (NLP): AI tools that dissect regulatory texts, pinpointing relevant clauses.
- Predictive Analysis: Machine learning models that forecast the implications of upcoming regulatory changes.
- Workflow Automation: AI-enabled automation of compliance-related workflows.
- Risk Assessment: AI integration in broader compliance risk management strategies.
- Audit Trail and Reporting: AI tools maintaining a comprehensive, real-time audit trail for regulatory activities.
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