Harnessing Generative AI for Regulatory Compliance

Since the release of ChatGPT, Generative AI has become a mainstream topic of discussion. Organizations across sectors of the economy are inspired and looking for opportunities to leverage this technology to streamline processes, uncover insights, and drive growth.

In this article, we will delve into the applications of Generative AI for regulatory compliance and explore how organizations can benefit from this technology in a controlled and ethical manner.

What is Generative AI?

Generative AI refers to a class of algorithms that leverages deep learning models to generate new and original content in response to a user prompt. It can generate text, images, music, videos, and even simulate realistic scenarios by combining existing data in innovative ways.

Generative AI and Regulatory Compliance

Regulations across the world are constantly evolving. Organizations are faced with considerable challenges in understanding, assessing and implementing changes required to comply with changing regulatory requirements. The processes to ensure regulatory compliance are primarily manual and time-consuming, with no tolerance for errors.

Generative AI can help overcome these challenges by transforming the way regulations are understood, their impact is assessed, and the required changes are implemented:

• Understanding regulations: Generative AI can be used to improve the understanding and interpretation of regulations by enabling users to ask questions and receive answers grounded in facts and citing the sources. In this manner, complex and verbose regulatory documents can be explored and understood by focusing on the parts that matter. Furthermore, multiple regulations, for example originating from different countries, can be compared and combined requirements extracted.
• Assessing impact: Similarly to the analysis and comparison of regulations, Generative AI can be used to compare requirements of regulations to internal policies, standards and procedures, accelerating gap assessments and compliance analyses.
• Implementing changes: Generative AI can also be used to update the policies, standards and procedures to comply with new regulatory requirements. It can also support communication and training on new requirements, by providing users with intuitive chat interfaces to explore internal documents.

Building Trust and Addressing Ethical Considerations

While the potential of Generative AI is undisputed, it is essential to address the associated challenges and ethical considerations.

Issues like data biases, intellectual property rights, privacy concerns, and transparency in decision-making need careful consideration.

Responsible deployment of Generative AI requires robust governance frameworks and ongoing monitoring to mitigate risks and ensure ethical use. By properly governing the responsible use of Generative AI, organizations can create trust in such systems, foster their adoption and gain a competitive advantage.

If you want to know more on applications of Generative AI for regulatory compliance, get in touch. At Deloitte we are fully engaged in helping organizations realize the benefits that this technology can bring.