The use of Machine Learning in Compliance

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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.

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