Live from this year’s Podcast Movement Conference, Tom covers his two favorite things: innovation in compliance and the 2017 World Series winning team, the Houston Astros. As a case study on the uses of data, AI and data analytics from a compliance perspective, Tom talks about the Astro’s Big Data approach to team management as well as other important compliance issues of the day.
- Much of the information about the Houston Astros in today’s episode comes from Ben Reiters book called Astroball: The New Way to Win it All.
- To give you an idea of how data analysis is used in baseball, the Astros use data in 3 ways that relate to compliance: player selection, player development, and future-forward application. Before jumping in, Tom reviews how compliance factors into data analytics, namely around interpretation.
- When it comes to critical decisions like managing risk, an incomplete data set can complicate your process. Mike Trout might be the best baseball player today, but he wasn’t graded as the number one draft pick when he entered the league due to incomplete information about his high-school performance.
- How can AI assist in the compliance world? Tom talks about various areas where AI’s native intelligence can strengthen the compliance function.
- Building in ethical and regulatory regime requirements (e.g. GDPR, HIPA)
- Amplifying strengths (productivity, efficiency)
- Extend capabilities (reviewing high numbers of 3rd parties along multiple risk vectors).; one pertinent example would be a supply chain review.
- Interact with compliance customers (internal employees, 3rd parties, stakeholders). What if AI could enable you to speak to a compliance reporter in their native language?
- Identifying red flags before they occur is one of the greatest bonuses of using AI. For example, what if you could build a “digital twin” of your compliance function/program to test its limits or identify vulnerabilities?
- What is the future of AI in the compliance profession? Tom returns to the Astros to discuss the possibilities of future-focused processes in boosting results.
- Tom talks about the 5 characteristics of a business process that should be improved using AI:
- Flexibility: AI can be used to ensure nimble response to potential risks, vetting procedures.
- Speed: AI can supplement fraud detection for high volume and high risk transactions and all collect together disparate data sources to create a quick picture.
- Scale: AI can assist practitioners in reviewing potential candidates at a high volume or even responding to employee messages.
- Decision making: as consistent communications and effect training are a must for employees on the front lines, using the digital twin concept could help identify problems before they happen.
- Personalization: With the extended capabilities of AI, a compliance program can drill down to the individual level, enabling a higher level of precision at the decision-making stage.
If you’re a compliance professional looking for a convenient and effective way to fulfill your continuing education requirements, go to FCPAComplianceReport.com/Courses and choose from 4 hour-long training packages that will keep you up to date with the latest developments in the compliance field.