Transforming Regulatory Compliance with Generative AI

Abstract

This article examines the transformative potential of generative artificial intelligence in regulatory compliance across multiple industries. AI technologies are revolutionizing traditional compliance processes through automation, enhanced monitoring capabilities, and adaptive learning systems that address longstanding challenges, including high false positive rates, lengthy processing times, and adaptation to evolving regulations. Key compliance applications are presented alongside substantial benefits in operational efficiency, effectiveness, and strategic competitive advantage. While significant challenges remain regarding data privacy, explainability, human oversight, and ethical considerations, a framework for responsible implementation is outlined that maintains appropriate human judgment and accountability in regulatory compliance functions. The article provides organizations with practical guidance for evaluating, implementing, and optimizing generative AI systems within increasingly complex regulatory environments.