Artificial intelligence (AI) is reshaping nearly every aspect of business, and Governance, Risk, and Compliance (GRC) is no exception. While machine learning has long been used to analyze data and predict outcomes, generative AI—like ChatGPT—is redefining the possibilities. Its ability to create, refine, and reimagine workflows positions it as a transformative tool for GRC professionals.
In this post, we’ll explore how generative AI is enhancing GRC processes, the opportunities it presents, and considerations for its safe and effective use.
The Potential of Generative AI in GRC
Generative AI, such as ChatGPT, is powered by large-language models trained on massive datasets to identify patterns and generate human-like responses. This capability enables businesses to analyze data, uncover insights, and automate complex tasks faster and more accurately than ever before.
Already, companies are leveraging AI to:
- Automate control testing.
- Review and document findings.
- Generate risk statements and ratings.
- Draft and refine policies.
- Translate and interpret complex regulations.
For example, creating board reports—a time-intensive and detail-oriented task—can be streamlined with AI, resulting in faster and more insightful reporting.
Why You Can’t Ignore AI
The rapid adoption of AI across industries means businesses that delay risk falling behind. ChatGPT’s ability to generate a draft policy or summarize regulations in plain English offers a glimpse into how AI can overcome traditional bottlenecks. For GRC professionals, this means shifting from reactive problem-solving to proactive innovation.
Addressing Challenges: Safeguards and Risks
AI tools are not without their challenges. Here are key considerations for implementing AI responsibly in GRC:
- Hallucinations: Generative AI models can produce inaccurate information or fabricated details. Always validate outputs to ensure reliability.
- Bias: Historical data used by AI may carry outdated or inappropriate perspectives. Review content to align with current standards and organizational values.
- Data Privacy: Inputs to AI models may be stored and incorporated into training datasets. Avoid sharing sensitive or proprietary information, and establish clear policies on acceptable use cases.
- Transparency: AI tools do not cite sources, making it crucial to cross-check the accuracy and origin of generated information.
How AI Transforms GRC Workflows
One of the most compelling use cases for AI in GRC is what we call the “blank-page challenge.” Starting any task—like writing a policy or filling out a compliance form—can be daunting. AI eliminates that initial hurdle by providing a draft within seconds, allowing professionals to refine and complete tasks more efficiently.
Practical Applications
Here are some specific ways AI is being used in GRC:
- Risk Management: Generate risk statements and assign ratings based on data inputs.
- Regulation Summaries: Translate technical regulations into plain language or other languages.
- Policy Development: Draft initial policies tailored to industry needs.
- Automation: Simplify repetitive tasks like compliance checks and evidence reviews.
For example, a compliance officer might use AI to draft a business continuity plan or identify gaps in third-party risk assessments. By accelerating these processes, AI empowers teams to focus on strategic initiatives rather than manual tasks.
Steps to Harness AI Effectively
- Explore Use Cases: Familiarize yourself with tools like ChatGPT. Experiment with creating drafts, summarizing reports, or generating compliance checklists.
- Establish Policies: Define organizational guidelines for using AI, including risk tolerance, data handling, and oversight protocols.
- Start Small: Leverage public AI models through APIs or third-party platforms to augment existing processes without significant upfront investment.
- Educate Teams: Equip employees with the knowledge to use AI tools effectively, ensuring they understand both the benefits and the risks.
The Future of GRC
Generative AI is not just a tool—it’s a catalyst for reimagining how work gets done. By automating labor-intensive tasks and enhancing decision-making processes, AI enables organizations to build stronger, more resilient GRC frameworks.
Embrace the Future with Connected Risk
At Empowered Systems, we understand the transformative potential of AI in GRC. Our Connected Risk platform is designed to help you integrate cutting-edge technologies into your risk management strategy. With features like real-time data analysis, streamlined workflows, and enhanced reporting capabilities, Connected Risk positions you to lead in this new era of AI-driven GRC.
Don’t wait to explore what AI can do for your organization. Contact us today to learn how Connected Risk can empower your team to achieve more, faster. Together, let’s redefine the future of GRC.
