How is generative AI used in regulatory compliance, and which AI tools apply?

There are multiple generative AI platforms that can be used in different scenarios concerned with regulatory scenarios:

• Interpretation of regulatory affairs:
  • AI-based platforms can accurately interpret regulatory texts and simplify them. This simplification makes implementation easier and thus reduces any associated risks.
  • Large Language Models (LLMs), Natural Language Understanding (NLU), and text generation models can help interpret regulatory affairs.
• Policy management and policymaking:
  • AI-based software programs and applications help organizations update compliance policies and training methods and adopt newer policies and regulations.
  • Transformers and LLMs can be helpful in these areas.

Source: (Takyar, 2024)

The subsequent points describe different ways AI can be applied to enhance compliance and regulatory processes:

Compliance Area – Improved regulatory insights

• • Gen AI Technologies that can be Applied- LLMs and predictive AI model
    • How AI can Help: Can provide detailed and deeper insights, analyze data, and help ensure proactive management of complex compliance issues.

Compliance Area –Risk mitigation

• • Gen AI Technologies that can be Applied- LLMs and predictive AI model
    • How AI can Help: AI-based models can identify different risks and vulnerabilities and provide a strategic framework and outline to the organization accordingly. 

Compliance Area –Streamlining the compliance processes

• • Gen AI Technologies that can be Applied- Transformers, Generative Adversarial Networks (GANs)
    • How AI can Help: The adjacent column’s AI platforms can automate daily tasks like compliance checks. This significantly reduces the need for (and the time required to) perform manual supervision and oversight.