We live in an era where artificial intelligence (AI) is no longer just a tool for answering questions or providing recommendations; it has strengthened into a partner capable of acting on our behalf. In a recent article in Bloomberg entitled Using AI Agents Requires a Balance of Trust, Privacy, Compliance, Sabastian Niles, President and Chief Legal Officer of Salesforce, discussed the role of AI agents. Today, we, therefore, enter the world of agentic AI systems. Understanding this new breed of AI is essential for compliance professionals to harness its power responsibly while safeguarding trust, privacy, and compliance. Over this three-part blog series, I will explore what Agentic AI systems are, how they can be used in compliance, and how to use Agentic AI going forward.
Defining Agentic AI Systems
In simple terms, Agentic AI does not simply inform; it acts. For compliance professionals, this opens up many possibilities for automating tasks, improving efficiency, and enhancing decision-making. However, with greater autonomy comes greater responsibility, particularly in ensuring these systems operate ethically and within regulatory boundaries.
Agentic AI systems differ significantly from traditional AI tools like chatbots or standalone large language models. While the latter is primarily reactive, responding to queries or prompts, Agentic AI systems operate with a higher degree of autonomy. These systems can analyze data, adapt to new information, and act within pre-defined parameters without requiring constant human oversight. Some of the key differences include the following.
- Autonomy. Unlike traditional AI, which often requires human input to execute tasks, agentic AI can take the initiative within established guidelines.
- Adaptability. Agentic AI learns and develops based on new data or changing conditions, making it highly dynamic.
- Action-Oriented. These systems can analyze data and decide and execute tasks in real time.
For example, imagine a compliance chatbot that answers employees’ questions about corporate policies. While useful, this chatbot cannot take further steps, such as generating a personalized policy report or flagging potential compliance risks. On the other hand, an Agentic AI system could handle these additional tasks autonomously, freeing compliance teams to focus on more strategic priorities.
Agentic AI in Action for Compliance
What does agentic AI mean for the compliance function? Essentially, it represents an opportunity to reimagine how compliance teams operate, enabling them to do more with less. Here are a few ways agentic AI systems can be used effectively in corporate compliance.
- Automating Repetitive Tasks. Compliance professionals often find themselves bogged down by routine, resource-intensive tasks. Agentic AI can take over many of these responsibilities, such as in policy management automation, by reviewing and updating compliance policies based on regulatory changes. You can provide employee support by responding to frequently asked compliance questions and escalating complex issues to the appropriate team members. You can move it outside your organization by continuously assessing third-party risks and analyzing real-time data, such as media reports or transaction histories.
- Enhancing Risk Assessment. Agentic AI systems can analyze vast amounts of data quickly and accurately, making them invaluable for identifying and mitigating risks. They can assist in transaction monitoring by detecting anomalies in financial transactions that may show potential fraud or corruption. You can move to more proactive risk screening by monitoring news and regulatory updates to identify emerging risks that could impact the organization. Most excitingly, they can provide predictive analytics. They could allow you to expect compliance challenges based on historical trends and current data.
- Supporting Decision-Making. With their ability to analyze complex data and generate actionable insights, agentic AI systems can help compliance teams make better-informed decisions. This can include scenario planning and forecasting by modeling the impact of potential regulatory changes on the organization. As the Department of Justice reminded us in the 2024 Update to the Evaluation of Corporate Compliance Programs (2024 Update), you can move to true data-driven recommendations to provide documented guidance on addressing identified risks or improving compliance processes. Finally, in the never-ending battle for resource allocation, Agentic AI can identify areas where compliance efforts should be prioritized for maximum impact.
The Risks and Responsibilities of Agentic AI
While the benefits of agentic AI are clear, compliance professionals must approach its adoption cautiously. The autonomy of these systems introduces new risks. First and foremost is data integrity and Garbage In, Garbage Out (GIGO), which tells us that AI systems are only as good as the data they process. The system’s outputs could be flawed if the data is incomplete, biased, or outdated. Accountability and transparency are critical, as the question will be asked, “When AI systems make decisions or take actions, who is ultimately responsible?” Compliance teams must establish clear guidelines to ensure accountability and transparency. Finally, there are the ethical concerns involved. The ability of agentic AI to act autonomously raises questions about transparency, fairness, and privacy. These concerns must be addressed through robust governance and ethical guidelines.
Why Compliance Professionals Should Care
Agentic AI systems are not just another tech innovation—they are a significant change that will shape the future of compliance. By understanding these systems, compliance professionals can position themselves as strategic enablers, helping their organizations harness the power of AI responsibly. Compliance teams are uniquely positioned to ensure that AI systems operate transparently and ethically, fostering stakeholder trust.
As AI-specific regulations emerge, compliance professionals will play a critical role in ensuring adherence to new legal standards, as echoed in the 2024 Update.
By integrating agentic AI into their workflows, compliance teams can improve efficiency, reduce costs, and drive profitability in the company. It will certainly demonstrate an increased ROI for compliance.
The Path Forward
The rise of agentic AI systems represents a transformative opportunity for compliance professionals, but only if implemented thoughtfully and responsibly. By embracing this technology, compliance teams can move from being seen as cost centers to becoming innovation partners, driving compliance and business success.
The key is striking the right balance: leveraging the autonomy of agentic AI to achieve efficiencies while maintaining the trust, privacy, and ethical standards foundational to compliance. As compliance professionals, we can lead this transformation, ensuring that agentic AI serves as a tool for good, not a source of risk. The bottom line is that the future of compliance is not simply about saying no to innovation; it is about guiding it responsibly. Let Agentic AI be your ally in this journey.
Join us tomorrow in Part 2, to discuss how to use Agentic AI systems.
