HR Management & Compliance, Technology

AI: Is It Helping or Hurting Businesses in the Quest to Stay Compliant?

The business world is currently abuzz with talk about artificial intelligence (AI). With incredibly intuitive tools such as ChatGPT making headlines outside of traditional tech circles, many businesses are wondering how they can integrate AI into their processes and whether it will help with or hinder their compliance efforts. 

AI is a powerful tool that can speed up and improve a number of tasks, from marketing to data analytics to sales, operations, and more. It can also be integrated into a business’s approach to compliance. 

With AI’s ability to streamline data analytics and catch issues humans could easily miss, it could be a valuable tool in the compliance manager’s toolbox, though there are some downsides to using AI in compliance, as well. Whether AI helps or hurts may come down to how businesses want to use AI tools and their expectations. 

How AI Can Help with Compliance 

Compliance can be a daunting task for businesses to approach, especially within fields that are regulation-heavy, such as health care and law. Many risk managers and compliance specialists are trained to look for errors and missteps in regulation by combing through collected data. 

Although this process of collecting and analyzing can be long and tedious for human beings, it’s one AI can complete quickly and accurately. With AI’s assistance, compliance managers can gather information to work with and use to make decisions that affect the business as a whole. 

AI can also play a role in simplifying information for compliance managers. Compliance matters can often be complicated, and the newest AI programs can succinctly summarize a sea of legalese and confusing jargon. When compliance managers better understand their role, they can apply what they’ve learned to help the business be more compliant. 

AI has become such an aid in compliance matters that even regulatory bodies have started implementing it, as rapidly evolving technology often brings the subsequent need for greater regulations across most industries. 

Just as AI can help analyze large data sets and help with recommendations, it can also help regulatory bodies discover where there may be a need for more oversight or new regulations within a given industry. When AI is used to help the regulated and regulators sift through data to find the information that matters, human management can concentrate on applying that information in the most useful way possible. 

How AI Can Potentially Harm Businesses 

Although AI can be almost invaluable in its role of quick data collection and analysis, improved productivity and efficiency, and a host of other benefits, it’s still a machine created by humans and prone to errors. No machine can replace the intricacies of the human brain—at least not yet, anyway. 

AI is only as smart as the information it’s trained on, meaning companies can run into bias and a lack of algorithm transparency with AI. If the data an AI program relies on to perform is inherently biased, the information coming from the AI program will have similar bias and skew the results. 

Many workers have also questioned the rise of AI and its role in potentially eliminating jobs in certain industries. Because AI can be so efficient, it can save businesses a significant amount of money, time, and other resources. This has resulted in AI taking over certain tasks that were previously conducted by humans, who are essentially now obsolete. 

Another concern with AI is the privacy and security of the information it collects. Whenever sensitive information is entered somewhere digitally, there’s always a risk the information will fall into the wrong hands. This can be especially problematic to those in the medical or financial sectors, where an information leak could be catastrophic. Therefore, businesses should ensure their security measures and technological oversight are well established.

While the positives of AI likely outweigh the negatives for most businesses, they must be aware of what could go awry when using AI for compliance purposes. 

The tech world is changing rapidly, and businesses that don’t keep pace are likely to eventually fall behind their competitors. However, when it comes to compliance matters, using AI to help with data collection and analysis, simplify information, and make compliance managers’ jobs easier can help businesses stay competitive and scale effectively. 

Sandy Fliderman is an experienced CTO and entrepreneur with expertise in cutting-edge technology, big data analytics, and large-scale operational systems. He has been involved in all levels of technology firms, from start-ups to publicly traded companies, with areas of focus across multiple industries. Fliderman also has expertise in developing new technology platforms, including holding several patents in the cybersecurity space.

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