Compliance and AI.
Can AI enable compliant electronic communications at scale?
12 Mar 23•
My Audit Spot
Internal auditors and risk & compliance teams play a critical role in ensuring that organisations are compliant with relevant regulations and policies. However, with the proliferation of electronic communication platforms, the greater embeddedness of electronic communications in our day-to-day work, and the increasing complexity of regulatory requirements, the job of internal auditors and risk & compliance teams has become more challenging.
Over the past decade, we have seen the use of electronic communication in business evolve to the point where we cannot imagine working without it. At the same time, the recent years have seen electronic communication, such as emails and instant messages, increasingly be at the core of regulatory investigations and compliance breaches, with examples all across the media. While electronic communication has transformed the way we work, it also exposes companies to a series of risks that can result in regulatory fines and litigation, causing significant reputational damage and financial loss.
A key challenge is that employees are generally relied upon to observe regulations and corporate policies in their day-to-day communications. Yet they typically receive little support beyond an initial training on compliant communication and are held responsible when things go wrong. The average office worker sends 10,000 emails per year, and it only takes one mistake to get them and their company into trouble. Moreover, traditional compliance training is reactive and simply does not prevent all the breaches that can occur. This is where technology can be leveraged to assist employees in their day-to-day work and, in the long run, create a stronger work culture.
Fortunately, advances in artificial intelligence (AI) are now making it possible to achieve proactive compliance at scale through real-time risk prevention, which can make the job of both employees and risk & compliance teams easier and more effective. One of the key advantages of using AI is that it can help to reduce the burden of manual compliance monitoring tasks, enabling internal auditors and risk & compliance teams to focus on higher value-added activities. By leveraging AI technologies like natural language processing and machine learning, it is now possible to monitor electronic communications at scale, analysing them for potential compliance issues in real time and assisting users to mitigate potential risks before they occur. This can help to streamline compliance management processes, enabling risk & compliance teams to more efficiently manage compliance and minimise the risk of costly violations.
Another advantage of using AI is that it can help to improve the accuracy and effectiveness of compliance monitoring. Traditional compliance monitoring methods often involve manually reviewing vast quantities of data, which can be time-consuming and error-prone. By contrast, AI can analyse data in real time, automatically flagging potential compliance issues and providing actionable insights to internal auditors. This can help organisations to stay ahead of evolving regulations and minimise the risk of compliance violations.
AI can also help improve the quality of compliance monitoring by enabling internal auditors and compliance teams to more effectively identify and address compliance issues. By analysing electronic communications for potential compliance risks, AI algorithms can help pinpoint areas of concern in real time, enabling internal auditors to focus their efforts on the most critical compliance issues. This can help to prioritise compliance monitoring efforts and ensure that internal auditors and compliance teams are able to take a more targeted and effective approach to compliance management.
The use of AI can therefore help organisations achieve proactive and continuous compliance at scale. It can help shift the focus from reactive responses to compliance breaches towards proactive compliance through real-time risk prevention. As AI technologies continue to evolve, we can expect to see more innovative solutions emerging in this space, enhancing the capacity and supporting the critical work of internal auditors and risk & compliance teams.
One such solution is Lexverify, an AI-powered assistant that helps companies prevent legal and compliance risks on their electronic communications in real time. Lexverify are UK Lawtech pioneers on a mission to make risk prevention as easy as spell checking. Their AI-powered assistant alerts users to potential legal and compliance risks while they are typing an email or message and before they hit the send button, helping them prevent potential risks before they occur and providing critical in-the-moment training. Implemented at scale, this saves companies time and money, protects their reputation, and helps them build and maintain a professional work culture. Lexverify brings compliance training to the source, providing continuous development support and protecting employees in real time. If you are interested to learn more about Lexverify’s AI-powered assistant, you can visit their website here or get in touch at email@example.com.