From Concept to Reality: Demonstrating RIG’s Generative AI in Regulatory Horizon Scanning

Regulations across the world are constantly evolving, presenting organizations with considerable challenges in understanding, assessing, and implementing changes required to comply with new regulatory requirements. Traditionally, regulatory horizon scanning and regulatory change management are manual, time-consuming processes.

This is where RIG, FinregE's generative AI LLM, trained on FinregE's vast database of legal and regulatory texts, offers a demonstrable example of the successful application of generative AI in managing regulatory horizon scanning.

It has long been acknowledged that generative AI has the potential to revolutionize traditional regulatory compliance processes, including horizon scanning. Historically, these processes have relied heavily on manual efforts, which are both time-consuming and labour-intensive. Compliance professionals have had to scan various websites, read through extensive regulatory documents, and meticulously map regulatory changes to existing policies and controls without any AI assistance. This requires a significant amount of manpower and time. The process of reading and interpreting these documents is not only tedious but also prone to human error, which can lead to missed or misunderstood regulations.

Once regulatory changes are identified, the next step involves mapping these changes to an organization’s existing policies, procedures, and controls. This mapping process requires a deep understanding of both the new regulations and the existing compliance framework. Compliance teams must manually compare the new requirements with current practices, identify gaps, and determine the necessary updates to ensure compliance. This manual mapping process is not only time-consuming but also complex, as it often involves cross-referencing multiple documents and understanding intricate regulatory language.

Generative AI can transform these traditional processes by automating many of the manual tasks involved in regulatory compliance. AI-powered tools like RIG can rapidly scan and analyse large volumes of regulatory texts, extracting relevant information and providing detailed insights in seconds. This automation not only speeds up the horizon scanning process but also enhances accuracy by reducing the risk of human error.

Here’s how FinregE’s RIG addresses this challenge:

Transforming Regulatory Understanding and Management

Understanding Regulations

RIG significantly enhances the understanding and interpretation of changing regulations. In just seconds, users can ask questions and receive answers grounded in facts, with citations of the sources. This allows complex and verbose regulatory documents to be explored and understood by focusing on the relevant parts. Furthermore, RIG can compare multiple regulations from different countries, extracting and combining the required compliance elements.

Operational Resilience
Assessing Impact

RIG accelerates gap assessments and compliance analyses by comparing regulatory requirements with internal policies, standards, and procedures. By simultaneously analysing policy texts against regulation texts, RIG identifies where internal policies align with regulations and where gaps exist. This capability ensures that organizations can swiftly and accurately assess the impact of regulatory changes on their operations.

Implementing Changes

RIG facilitates the updating of policies, standards, and procedures to comply with new regulatory requirements. It also supports communication and training on new requirements by providing users with intuitive chat interfaces to explore internal documents. This ensures that organizations can efficiently implement necessary changes and keep their teams informed.

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Tackling Key Issues: Data Biases, IPR, Data Privacy, and Transparency

RIG is fully explainable and operates within each client’s environment, relying solely on publicly available regulatory documents captured from global governmental and supervisory regulatory sources in FinregE’s horizon scanning service. This approach eliminates issues such as data biases, intellectual property rights concerns, privacy issues, and transparency challenges.

Productivity Gains from Using RIG

Implementing RIG has proven to deliver significant productivity gains by drastically reducing the time and effort required for regulatory horizon scanning and compliance management. Organizations can expect to see productivity improvements ranging from 50% to 90%, depending on the complexity and volume of their regulatory compliance workload. These gains not only enhance operational efficiency but also allow compliance teams to reallocate their efforts towards more strategic and value-added activities.

Why Adopt RIG?

RIG has been trained on a vast corpus of curated and clean legal and regulatory publications, laws, and regulations. This extensive training ensures that RIG provides accurate and reliable insights. FinregE’s RIG prioritizes the privacy and security of our clients’ data, adhering to the highest industry standards. RIG is fully explainable, allowing users to understand and trust its outputs. It meets rigorous data protection and security standards, including SOC2 and ISO27001 compliance, regular accredited third-party penetration testing, FIPS 140-2 standard encryption for all content, and SAML 2.0 integration. This comprehensive approach guarantees that RIG not only delivers powerful regulatory insights but also maintains the utmost data security and privacy.

By leveraging RIG, organizations can transform how they understand, assess, and implement regulatory changes, leading to greater compliance efficiency and effectiveness.

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

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