Artificial Intelligence (AI) can enable firms to identify regulatory requirements and help them ensure that their regulatory requirements are traced to their risk and compliance taxonomy.
A large global bank recently disclosed that more than 30,000 of its employees – or 15 percent of its total workforce - are now categorized as “risk, regulatory, and compliance staff.” Nonetheless, despite the three fold increase in risk and compliance employees over the past 10 years, a regulator fined the bank millions for multiple risk management and compliance-related deficiencies.
It can be argued that large bank regulatory compliance woes are primarily a reflection of inadequacies in risk culture. However, there is also a question of whether the bank had sufficient advanced technology in place to foster more accurate and timely compliance.
Artificial Intelligence (AI) can enable firms to identify regulatory requirements and help them ensure that their regulatory requirements are traced end-to-end to their risk and compliance taxonomy. The AI technology can further assess the regulatory changes, identify the impact on the taxonomy and keep the compliance maps updated at scale and in real-time.
Neural language models based on transformers have drastically changed the field of language modeling in recent years. These neural networks are fine-tuned on compliance data such as regulations and legislations to automate at scale manual and time-intensive compliance tasks.