Technology and Compliance

Artificial Intelligence and Corporate Compliance

Artificial intelligence (AI) is technology that gives machines the power to perform specific tasks that normally require human intelligence, such as visual perception, speech recognition, decision-making, learning, and language translation. AI, and its definition, continues to evolve. Part of AI’s development is contingent upon its creator’s interpretation and expectation of human intelligence as well as imagination of nonhuman intelligence. As a result, stages, classifications, or levels of defining AI have started to formulate.

AI continues to be featured in the news, conversations, and product development. Like other innovative technologies that individuals choose to simply ignore, due to the lack of understanding, fear, or disbelief, one thing continues to stay constant: It is not going away.

In an era of ever-evolving regulations, heightened scrutiny, and increasing data complexities, businesses are under constant pressure to maintain compliance with a multitude of laws and regulations. Compliance failures can result in costly penalties, reputation damage, and legal repercussions. In response to these challenges, many corporations are turning to AI to streamline and enhance their compliance efforts.

When starting to discuss AI and corporate compliance, there are two aspects to consider. One is understanding how AI will improve corporate compliance in efficiently identifying, monitoring, and addressing compliance issues. The other is how corporate compliance will now need to identify risks, develop guidelines, and monitor the use and implementation of AI.

In this section, we will help (1) introduce and define AI, (2) identify the role of AI in corporate compliance, (3) discuss key benefits to corporate compliance, and (4) explore what to consider in embracing and thinking about keeping AI in compliance.

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