The use of Machine Learning in Compliance

Share on twitter
Share on linkedin
Share on facebook

The regulatory environment is evolving at a lightning pace. As a result, compliance officers must also keep up. To meet this challenge, AI applications have become more capable, particularly in regards to providing answers that are easy to interpret. As you might imagine, using an AI-powered system to process this data would be incredibly valuable for companies in a variety of fields—from financial institutions to insurance companies to tech firms.

In compliance, the goal is to ensure regulatory compliance by identifying, evaluating and responding to regulatory requirements. The work can be challenging; firms and individuals often work in an environment without sufficient information to effectively meet goals and objectives. As artificial intelligence and automation become more prevalent in the world, it’s imperative that firms continue to utilize compliance know-how in order to maintain an edge in an increasingly competitive marketplace.

The use of Artificial Intelligence in compliance is growing rapidly. AI can be used to eliminate manual processes, automate workflows and assist with data analysis. It offers many potential benefits to organizations such as identifying risks, detecting breaches more quickly and effectively, reducing staffing costs and increasing productivity.

Such systems are now available. We can expect a wider uptake with the opening up of technologies such as GPT-3. Compliance Quarter has implemented these technologies within its Compliance HUB and document review system. We did this by training our model on the requirements for certain regulatory obligations. Our system can review documents such as hardship policies and quickly identify potential gaps and missing sections.

We are developing the Compliance HUB to extend to predictive analytics used to identify potential risks when it comes to regulatory compliance. The Compliance HUB can identify the risk of a financial crime and also the risk of a non financial crime based on the existing compliance framework within the organisation. The platform will be able to provide the organisation with a risk score per transaction based on the transaction’s profile. This will enable compliance officers to identify the transaction’s compliance risk and prioritise them. This will enable compliance officers to use the Compliance HUB to make better decisions, which will ultimately improve the company’s risk management.

More to explorer

Close Up Of Power Cable Charging Electric Car Outdoors In Supermarket Car Park

2022-2023 Compliance and Enforcement Priorities of the AER

The Australian Energy Regulator has published its 2022-2023 Compliance and Enforcement Priorities. The AER will continue to focus its compliance and enforcement activities on how retailers assist customers who are facing financial difficulties and those who are within embedded networks.

Gas stove burner

Who claims and who pays: the administered price cap (APC) compensation process

The APC compensation scheme allows certain entities to claim compensation via AEMO and the AEMC where their total costs exceed their total revenue from the spot market over an eligible period. Entities that may be entitled to claim include scheduled and non-scheduled generators, scheduled network service providers, market participants in respect of a scheduled load, demand response service providers and ancillary service providers.

Live coals

NSW Energy Minister granted emergency powers to direct coal to fuel electricity generators

The NSW Energy Minister, Matt Kean, has been granted emergency powers under the Essential Services Act 1988 to direct coal companies to provide coal to generators. These powers were granted in response to the current energy market crisis.

We haven’t been publishing much about the current energy market crisis as we, like many in the industry, have been in the thick of it. However, from today, we will publish analysis of the regulatory responses of AEMO and state Governments. So, what do the powers allow the Minister to do and do they have any teeth?

Leave a Reply

Your email address will not be published.