What will be the role of AI in compliance going forward? LawTech disrupted the legal profession and reshaped many areas of private practice. I believe there will is a nascent ComTech industry lurking down the road with multiple implications for the compliance function.
Obviously, document review is one area where ComTech would be most useful. There are many companies which provide key word searches and these same concepts translate readily into the compliance world through massive database searches for key words, such as an ongoing review through email sweeps. There is yet another set of AI tools that can review contracts to see if any specific types of clauses are non-standard.
Soon compliance will be pushed more to the forefront in AML. AI will allow a more robust KYC approach. Another area where compliance is often left behind is in the arena of M&A. AI can help in this area. There are companies which have software that allows thousands of documents to be reviewed in the M&A context. A prime example of where AI can assist the compliance function is with third-parties in supply chain management.
There have always been technological innovations which help make compliance disciplines run more efficiently, more smoothly and more profitably. AI is simply another step in this line of technological developments. There is certainly no reason to be afraid of using it. Given the disruption which has impacted the legal profession through LawTech; disruption is not far behind in the compliance world through ComTech.
Three key takeaways:
- AI has already disrupted the legal profession; the compliance profession will be next. ComTech will be the result.
- Document review will be the first area of significant AI use in compliance.
- Beware the limitations and disadvantages of ComTech.
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