When it comes to automating any aspect of compliance, how the technology itself is built has serious implications for your business. Here we explain the building blocks of Ascent’s RegulationAI™, what makes it unique in the industry, and how our approach ensures that you truly have what you need to avoid fines and protect your firm’s reputation.
Not all automation is created equal
Ascent was built to tackle one of the most intractable challenges in compliance: mining mountains of regulatory information to get to the insights that matter — in other words, the actual actions our customers need to take (or refrain from taking) in order to stay compliant with the law.
Thanks to rapid advances in technology in recent years, compliance personnel now have a range of digital tools to help streamline this process. However, not all tools are created equal – especially when it is your firm’s reputation and financial wellbeing on the line. Other solutions may be partially automated, but depending on how it was built may actually create more work for the end user and increased risk for the business.
So while automation can seem helpful on the surface, it is crucial to understand the basis for the algorithms and the differences between solutions so you can make the right choice for your business.
Ascent’s RegulationAI™ breaks down regulatory text line-by-line in order to pinpoint the obligations relevant to you. Conversely, other solutions rely on algorithms that act much like a search engine. Their software skims through regulatory documents in search of key phrases or specified search terms that might be related to a company’s business requirements. The result is thousands of potential obligations that may or may not be relevant to you, which your team must still manually review. Manual reconciliation is required with every change in regulation, adding liability instead of reducing it.
When it comes to using automation to analyze regulatory text — a job that once could only be done by humans — how the technology works is just as crucial as the output of that technology. As all those who work in compliance know, it is not only the destination that matters, it is how you got there.
The magic is in our method
To understand why Ascent’s RegulationAI™ outperforms other solutions, it is important to first understand how it works.
Ascent’s team of engineers, data scientists, and compliance officers have spent years building, training, and optimizing the algorithms that power our platform, which are built using machine learning and natural language processing technologies. Only about 35 percent of any regulatory text contains an actual obligation (the rest consists of definitions, clarifications, and other ancillary information) and an even smaller percentage of those obligations apply to any particular business. Our algorithms are trained to spot the difference, and immediately get to work parsing out the text into obligations and non-obligations.
The output of this process is then verified by our in-house compliance experts as part of our humans-in-the-loop process. Their insights then get fed back into the system, making the algorithms that much smarter and more accurate as time goes on. Ascent’s final output has an accuracy rate of 99.5%.
Targeting obligations to you
Once the regulatory text has been decomposed and quality-assured, our RegulationAI™ has nearly everything it needs to do its magic. The last step is input from you, our customer.
In order for our RegulationAI™ to deliver the obligations that apply specifically to you, it needs to know some key information about your business; for example, what types of products or services you offer and in which regions you operate. This step takes the form of an online questionnaire. Once this questionnaire is complete, our RegulationAI™ rapidly maps regulation to your business profile, providing you with a clean, streamlined register of obligations in minutes.
The value of granular obligations
Because of how our RegulationAI™ breaks down regulatory text, we are able to offer obligations at a granular level. This means that every obligation delivered to you is the individual action imposed on your business, not an entire rule or large block of regulatory text that you must further analyze. Furthermore, every obligation is linked to the specific rule it came from, so you have full traceability into how your obligations were derived.
The difference is in the details
How Ascent’s RegulationAI™ works is the key difference that sets our technology apart. It is the reason we can provide obligations that are precise, down to the line level of regulation. It is the reason we can map obligations to your specific business with unmatched accuracy. It is the reason why we can analyze the regulatory landscape and identify the rule changes that are relevant to you, and then connect them to your existing obligations so you are never dealing with outdated information.
Great technology augments your team. With Ascent, Risk and Compliance teams can focus on the high-value activities that matter most — like creating and implementing controls, working across the lines of business, and developing a scalable compliance strategy — without the constant worry of accidentally missing an important update or keeping records that will stand up to regulator scrutiny.
With the power of RegulationAI™ at its core, Ascent provides regulatory knowledge that is tailored to your company so you can effectively reduce risk, avoid fines, and lower your overall cost to comply.
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Ascent helps financial services firms identify their regulatory obligations and keep them updated as rules change. Our targeted regulatory intelligence helps you avoid fines and reduce risk, while lowering your overall cost to comply. Learn more.