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New Analyst Report Explores the Role of AI in Managing Financial Services Regulatory Change 

Noted GRC industry analyst, GRC 20/20, has researched Ascent’s AI-enabled compliance automation solution, and the new report Delivering the A.I. Enabled Regulatory Change Lifecycle is the result.

The report looks at the increasingly complex challenges financial services companies face when trying to “navigate the tsunami of regulatory change in an environment that’s a shifting tapestry of local, regional, and international laws and guidelines.”

According to the report, the daunting challenge is that financial services firms are dealing with an unprecedented volume of regulatory changes. The number of regulatory updates has more than doubled over the past five years, while compliance teams’ capabilities to manage these changes have stagnated. 

As outlined in the report, most compliance teams lack adequate processes and resources to manage the deluge of regulatory changes efficiently. Challenges range from insufficient staffing and expertise to the overwhelming number of regulatory sources. Many organizations rely on antiquated, manual workflows that lack accountability, audit trails, and efficient reporting mechanisms. 

The Role of Artificial Intelligence in Regulatory Change Management 

The report explores how AI offers avenues to tackle these challenges head-on in these ways: 

  1. Automated Monitoring. AI algorithms monitor multiple sources of regulatory updates in real time, filtering out irrelevant information and prioritizing changes based on organizational relevancy.
  2. Natural Language Processing (NLP). AI-driven NLP tools analyze regulatory texts, identifying clauses and conditions relevant to an organization’s operations.
  3. Predictive Analysis. Machine learning models predict the potential impact of future regulatory changes, enabling proactive strategic planning.
  4. Workflow Automation. AI automates the workflows related to regulatory compliance, from notifying relevant stakeholders to new rules and obligations to initiating necessary policy and process changes.
  5. Risk Assessment. AI algorithms integrate regulatory compliance into broader compliance risk management strategies by analyzing how regulation changes interact with other business and operational risks.
  6. Audit Trail and Reporting. AI tools maintain an auditable, real-time trail of all regulatory compliance activities, satisfying regulatory demands for accountability and transparency. 

Ascent at the forefront

The report also takes a deep dive into Ascent’s AI-enabled approach to financial services regulatory compliance and change management, and details how Ascent’s compliance automation platform employs AI to help financial services compliance teams efficiently identify their specific regulatory changes and the associated obligations.

We invite you to read the entire report to learn how organizations are employing AI to overcome today’s myriad of compliance challenges.