The pace of regulatory changes is increasing, and regulators are increasingly relying on technology to help them monitor and detect potential violations. As a result, financial institutions must find ways to keep up with the ever-evolving landscape of regulations. This is where artificial intelligence (AI) comes into play. AI can be used to automate the process of regulatory change management and improve segmentation models that can detect potential violations. Risk Spotlight is an example of a solution that leverages AI to help organizations manage their regulatory compliance more effectively.
What is AI?
AI consists of computer systems that are able to perform tasks that normally require human intelligence, such as decision making or pattern recognition. AI can provide insights into large datasets that would otherwise be impossible for humans to analyze manually. In the context of regulatory change management, AI can be used to identify patterns within regulatory data that could indicate potential violations or risks.
How Can AI Help With Regulatory Change Management?
Organizations need to stay on top of regulatory changes in order to remain compliant and avoid penalties from regulators. AI can be used to automate much of the process of monitoring for changes in regulations by continuously scanning for new regulations or amendments that may affect an organization’s operations. This eliminates the manual labor associated with staying up-to-date on all relevant regulations, freeing up resources for other activities such as risk assessment or compliance testing. Additionally, AI can be used in segmentation models which identify potentially high-risk customers or transactions so they can be reviewed more closely by compliance teams and monitored more effectively over time.
In today’s rapidly changing business environment, financial institutions must stay abreast of all relevant rules and regulations in order remain compliant with regulators while still being able to operate efficiently and profitably. Leveraging artificial intelligence through solutions like Risk Spotlight helps organizations automate much of the process associated with regulatory change management while still providing insight into potential risks through segmentation models built using machine learning technology and natural language processing (NLP). This helps ensure organizations remain compliant with relevant laws without sacrificing productivity or profitability due to manual processes associated with managing regulation changes taking up too much time away from other critical tasks such as risk assessment or compliance testing.