In today's rapidly evolving financial and healthcare sectors, compliance remains a daunting challenge. Navigating through an intricate web of regulations from various authorities, coupled with the Herculean task of keeping policy documents updated, is no small feat. Companies in both sectors are having early success deploying AI to improve compliance operations, and we provide an overview in this video of one of the most promising use cases.

One of the most promising initial use cases is tracing - mapping rules to specific policy sections. For example FINRA rule 3310 (d), to pertinent sections within a bank’s Anti-Money Laundering policies. Tracing allows a bank to quickly identify the policy impacts of proposed regulatory changes, such as an FDIC rule amendment on capital requirements. 

Deploying tracing within a RAG application also creates an instant productivity tool useful by anyone. It can provide summary analysis, answer questions, or explain the rationale behind potential impact. Take a look at the example in this video and you’ll get a sense of how much AI will drive compliance changes. 

Will AI replace compliance teams? Not anytime soon. It will allow them to focus on the more impactful (and let’s be honest, interesting) work of keeping the firm safe.

The stakes in compliance are incredibly high, with regulatory penalties often reaching millions, if not billions, of dollars. AI will soon become table stakes for compliance departments, and those without it will be at increased regulatory risk.