An excerpt from “Artificial Intelligence in Corporate Compliance”
By Adrian Sierra
AI in Corporate Compliance
Most of the information regarding artificial intelligence (AI) is focused on identifying how it will help across multiple industries. Less is available that touches specifically on how AI will help corporate compliance. Below is an excerpt from SCCE’s 2019 newly-transformed, flagship product, The Complete Compliance and Ethics Manual; on how a compliance program may look to leverage AI in data collection, analysis, and monitoring:
Policies, Procedures, and Code of Conduct
Policies and procedures that frequently change due to laws or internal improvements are a challenge to maintain and update. However, if AI is incorporated in some of those procedures, such as ensuring all purchase orders have an authorized signature on the invoice, it would be easier to update additional factors to review, as the invoice is already scanned in with the purchase order. Additionally, past occurrences that did not fall in line with new changes may be easier to identify and analyze. This type of application is a business control that is a necessary part of a complete compliance program: making sure that a policy is actually executed in practice (see “Auditing and Monitoring” below).
Human resources departments are typically involved in addressing various legal or policy issues, such as sexual harassment, pay equity, benefits administration or abuse, and the consequences of an employee leaving an organization. Most of the time, this is typically brought to HR’s attention after the fact. AI technology can be used to monitor company communications to proactively identify inappropriate interactions, the sharing of confidential information to non-company personnel, web activity, and the risks of employees looking to leave the organization. This would initially increase the amount of data received but would identify potential violations faster and uncover those that would otherwise go undetected.
Oversight and Accountability
AI cannot be accountable for the compliance function, but the human beings responsible for compliance can identify specific metrics or tasks for which they are responsible, and then use AI to monitor and help demonstrate the effectiveness of the compliance program. Depending on the risk and priority of the organization, a compliance dashboard can be maintained by the compliance professional. Once defined by the organization, AI can proactively gather and process information for the compliance professional to ensure that the company is in line with its compliance program.
Education, Communication, and Awareness
Assessing education and training results can be a challenging task. Understanding that an individual has completed the training—and being able to analyze which questions were answered incorrectly—can be very valuable. Taking this historical data in conjunction with other employment or communication data can provide insight into possible higher risks of policy and procedure violations or indicate where further training is needed. Also, as AI grows within the education industry, it will be able to leverage a more comprehensive educational program where AI is the teacher. This can increase productivity and reduce costs, rather than just relying on employees taking online self-study courses.
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SCCE’s 2019 edition of The Complete Compliance and Ethics Manual is now interactive, versatile, and mobile-friendly. When you purchase the 2019 edition, you’ll receive the print version and digital access.