AI boosts compliance speed and accuracy in risk management

June 13, 2025

The regulatory landscape is changing rapidly, creating growing challenges for businesses to keep up.

Thomas Reuters’s Regulatory Intelligence reported over 61,000 alerts from more than 1,300 regulatory bodies in 2022, averaging 234 compliance updates daily.

With increasing pressures from global trade, supply chains and cybersecurity, many organisations are turning to AI to modernise regulatory change management. Venky Verrapotu, CEO and co-founder at 4CRisk, outlines five ways AI is revolutionising this process.

Horizon scanning is the first critical step. Traditionally, businesses manually monitor government websites, regulatory publications and industry updates for any potential changes. This process can be slow and prone to human error. AI automates horizon scanning by analysing vast data sources in minutes, identifying changes and generating clear summaries. This allows businesses to respond up to ten times faster and focus only on the most relevant updates, it said.

Next is the applicability analysis, where companies assess whether regulatory changes impact their business. AI simplifies this by performing difference analyses, highlighting affected business units, products, and jurisdictions. It can tag and categorise changes, producing actionable insights up to 20 times faster than manual reviews, allowing compliance teams to focus their expertise where it’s most needed.

The third phase is the impact assessment, which determines how new regulations affect business policies, contracts and controls. AI maps the relationships between changes and business processes, generates law memos and action plans, and produces reports to support legal teams. These assessments are completed up to 30 times faster, freeing experts to review and confirm the results.

Once changes are identified, businesses must manage the implementation while maintaining thorough documentation for regulatory audits. AI streamlines this by generating automated workflows, tracking issue management, and ensuring evidence is collected and organised. This reduces oversight burdens and makes the process up to 5 times more efficient, Verrapotu noted.

Finally, AI provides a competitive edge. Companies that can quickly adapt to new regulations and show evidence of compliance can respond to market opportunities faster than competitors still relying on manual processes.

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