With regulations being constantly amended and updated, companies face tons of challenges in maintaining compliance. Some incur financial penalties for failing to implement regulations ― or worse, they even face criminal litigation.
Here's the good news: Learning how to use big data and AI technology effectively can help you overcome the difficulties of staying compliant.
Getting to Know RegTech
Regulatory technology, or RegTech, covers simplifying the compliance process, with the ultimate goal of automating it through digital technologies like big data and AI.
The regulatory compliance tasks are the same: collecting data from various sources, authenticating them, and then submitting them to regulators. However, big data and AI become the experience differentiators by eliminating one of the main reasons companies fail in compliance: repetitive manual tasks that are time-consuming and prone to errors.
Employing Tech for Compliance
Let's dig further into how big data and AI can make it easier for companies and regulatory agencies to work within the compliance realm.
Big data and AI can help companies make smarter decisions.
For businesses that need to understand and look into risk patterns and data management, the benefits of having big data and AI could be tremendous. These two technologies enable companies to identify, monitor, and review risks, helping them evaluate existing approaches to compliance and move strategically to the next sensible action.
Big data and AI technologies can process data in real-time and prepare for unseen compliance hazards down the road. Apart from ensuring compliance with regulatory standards for banking, these smart technologies can also help detect criminal financial activity, including money laundering and fraud.
Big data and AI save companies time when reviewing regulatory policies.
Regulatory bodies write, rewrite, and amend industry-specific rules, which are published in large documents. Business owners and their compliance officers may not have sufficient time to thoroughly read the papers and fully grasp what has been updated or changed.
This is where AI jumps in with software applications that can review and provide a meaningful interpretation of the regulatory document. AI applications can take out the complex, lengthy descriptions and break the documentation down into succinct, easily readable information. It can further highlight the most critical portions of the document and provide insight into what actions businesses need to take.
Big data and AI enable companies to survive regulatory changes.
Just when companies think they've gotten it all figured out, that's when the regulatory standards change again. But they shouldn't fret much about it if they have big data and AI in their compliance strategy. How do they help? Applications, such as natural language processing tools, can be used to "read" or process the information and "learn" any new changes. Then, companies receive notification for these changes, which gives them time to make adjustments to ensure continuous compliance.
Leveraging Regulatory Technologies
The above examples are only a few of the many scenarios on how harnessing the power of AI and big data to ease compliance headaches. Here are more specific benefits of using them:
Improved efficiency with simple, data-driven solutions through SaaS and similar tools
Automated workflow replacing manual tasks performed by employees
Fast and accurate processing of huge regulatory documents
Comprehensive compliance monitoring to prepare for regulatory agencies' periodic audits
Shared access of monitoring tools to business owners for decision-making on company adjustments
Feeling Overwhelmed on Where to Start?
Now is a better time to get big data and AI on board, use it in your favor, and ensure your company's compliance is always up to standard. If you feel a little overwhelmed and are wondering where to begin with implementing AI, let Infinity Consulting Solutions help you find experts in this field. We can connect you to the right talent that will keep you thriving amid the ever-changing compliance expectations. Get started today by clicking the link below!