Tag: AI

Categories
Blog

AI and Emerging Technologies Enhancing Regulatory Intelligence and Compliance

Regulatory intelligence plays a crucial role in today’s business landscape, where regulatory requirements are constantly evolving. Staying ahead of these changes is not only essential for compliance but also offers a competitive advantage. I recently had the opportunity to visit with Caroline Shliefer, founder and CEO of RegAsk, on the topic of AI and emerging technologies enhancing regulatory intelligence and compliance. RegAsk has a tagline that states, “Empowering Smarter Regulatory Decisions Curated Regulatory Intelligence Augmented by AI.” It is certainly that and much more.
Caroline Shliefer is a seasoned professional with a rich background in healthcare, law, and regulatory affairs, boasting a PharmD PhD and a health law degree. Her perspective on emerging technologies enhancing regulatory intelligence and compliance is shaped by her extensive experience in the EU, US, and Asia and her role as the founder of RegAsk, which leverages technology to address compliance challenges. She believes that technologies such as AI, machine learning, blockchain, and data analytics are revolutionizing regulatory monitoring, enabling faster and more accurate interpretation of regulatory information, and fostering a more proactive approach to compliance. Her goal with RegAsk is to digitize and streamline the regulatory intelligence process, reducing the risk of non-compliance and fostering innovation.
Regulatory intelligence involves the systematic collection, analysis, and dissemination of information about regulatory requirements, policies, and guidelines that impact product development, manufacturing, and distribution. Traditionally, this process has been manual and challenging, requiring businesses to collect information from various sources and analyze it accurately. However, emerging technologies such as artificial intelligence (AI), machine learning, blockchain, and advanced data analytics are revolutionizing regulatory monitoring and compliance.
AI and machine learning are transforming regulatory monitoring by enabling swift and accurate interpretation and analysis of regulatory information. These technologies can track regulations across different jurisdictions and provide predictive analytics, reducing manual workload and mitigating human errors. By leveraging AI, businesses can anticipate regulatory changes and define various scenarios, allowing them to be prepared and gain a competitive advantage. As Caroline Shliefer, the guest on the podcast, highlighted, being proactive and understanding the small signals that can lead to new regulations is crucial for success.
Blockchain technology ensures secure record-keeping and smooth audits. It brings a level of security and transparency, helping businesses keep records securely and conduct audits more efficiently. This technology is particularly relevant in industries where traceability and accountability are essential, such as supply chain management.
Advanced data analytics allows for anomaly detection and informed decision-making. By analyzing compliance data, businesses can gain deeper insights and intelligence, enabling them to detect anomalies and make strategic decisions faster. These insights help companies understand the impact of regulatory changes on their operations and take proactive actions to ensure compliance.
The integration and automation of these emerging technologies synchronize and streamline the compliance process, resulting in fewer errors and efficient adaptation to new regulatory changes. Compliance managers and decision-makers are empowered and augmented by these technologies, allowing them to focus on strategic aspects while routine and tedious tasks are handled by technology.
Regulatory intelligence is not limited to a single business area. It extends to various sectors, including life sciences and consumer goods. Within consumer goods, regulations related to environmental sustainability and packaging are particularly important. Monitoring and complying with these regulations is crucial for businesses operating in these sectors.
Looking ahead, the future of automated regulatory intelligence is promising. The integration of AI and machine learning will continue to enhance regulatory tracking, enabling businesses to autonomously monitor, analyze, and report compliance requirements across various jurisdictions. Predictive analytics will allow companies to forecast future regulatory shifts and trends, enabling proactive strategy adjustments. This proactive approach ensures consistent compliance and helps businesses stay ahead in the ever-evolving regulatory landscape.
Regulatory intelligence providers, like RegAsk, are true market differentiators. They not only catalog regulatory changes but also anticipate them. By leveraging emerging technologies, they can advise clients on potential regulatory changes before they occur, allowing businesses to be prepared and ready to adapt. This proactive approach to regulatory intelligence and compliance is a game-changer, offering businesses a competitive edge.
In conclusion, emerging technologies are enhancing regulatory intelligence and compliance by revolutionizing the way businesses monitor and interpret regulatory information. AI, machine learning, blockchain, and advanced data analytics empower compliance managers and decision-makers, enabling them to stay ahead of regulatory changes and make informed decisions. By embracing these technologies, businesses can foster a proactive and resilient approach to regulatory compliance, ensuring compliance and gaining a competitive advantage in the market.

Resources

Caroline Shliefer on LinkedIn

RegAsk

Categories
31 Days to More Effective Compliance Programs

One Month to a More Effective Compliance Program Through Innovation: Day 15 – Leveraging AI in Compliance Investigations

The 2023 ECCP provided clear-cut criteria regarding effective compliance investigations. Unfortunately, many compliance teams fail to promptly substantiate most of the reports they investigate, partly due to their inability to quickly and easily find the evidence they need, especially about harassment and misconduct cases. He stated, “This doesn’t just demonstrate a fundamental lack of effectiveness from the DOJ’s perspective, but a long-term organizational risk that goes well beyond any individual allegation of misconduct.” The reason is not simply legal but also operational. If substantive allegations are indeed violations, they could continue, exacerbating the problem(s) and lengthening the time of legal liability.

All of this is particularly significant in light of the industry research that shows many compliance investigations today are unsubstantiated and can take over 40 days from start to finish. The ability of AI to find and analyze data from the web and social media in this automated fashion will be able to overcome some of those challenges in terms of length of time and overall scope of the investigation. Finally, always remember data preservation. The regulators always want to know if you have the documents and data tied down. This allows a company to have confidence in its papers and, in turn, can make such representations to regulators and prosecutors that the documents are secure. In other words, Document, Document, and Document. 

Three key takeaways:

  1. AI is an appropriate tool for supplementing investigations.
  2. AI can look at large bodies of social media data.
  3. AI can help you decrease your investigation length.

For more information, check out The Compliance Handbook, 4th edition, here.

Categories
Data Driven Compliance

Data Driven Compliance: The Transformative Potential of AI in Compliance Investigations

Are you struggling to keep up with the ever-changing compliance programs in your business? Look no further than the award-winning Data Driven Compliance podcast, hosted by Tom Fox. This podcast features an in-depth conversation about the uses of data and data analytics in compliance programs. Data Driven Compliance is back with another exciting episode. Today, Tom takes a solo turn to consider using AI to facilitate compliance investigations.

The advent of artificial intelligence (AI) is revolutionizing the landscape of legal and compliance investigations, enhancing substantiation rates, expediting case closure times, and preserving crucial evidence. Tom Fox, a seasoned expert in the field, firmly believes in the transformative potential of AI in this domain. He posits that AI can significantly improve regulatory compliance by enhancing substantiation rates, shortening case closure times, and preserving key evidence. Fox’s perspective is shaped by the current challenges initially posed by the COVID-19 pandemic, which made traditional methods of internal interviews and company data analysis less feasible, and those challenges coming out of the pandemic.

He advocates using AI technology to search unstructured web and social media data, leading to more efficient and conclusive investigations. Furthermore, he underscores the importance of data preservation and the ability of AI to analyze large volumes of social media data, thereby reducing investigation length and promoting fair institutional justice. Join Tom Fox in this episode as he delves deeper into this fascinating topic.

Highlights Include:

  • Leveraging AI for Efficient Compliance Investigations
  • The need for speed
  • Enhancing Compliance Investigations with AI-Based Data Preservation

 Resources: 

Tom Fox 

Connect with me on the following sites:

Threads

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Daily Compliance News

Daily Compliance News: September 14, 2023 – The What Could Go Wrong Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance, brings you compliance-related stories to start your day. Sit back, enjoy morning coffee, and listen to the Daily Compliance News. All from the Compliance Podcast Network. Each day, we consider four stories from the business world: compliance, ethics, risk management, leadership, or general interest for the compliance professional.

Stories we are following in today’s edition of Daily Compliance News:

  • Head of China’s top insurer jailed for corruption. (BBC)
  • Musk headed to arbitration against Wachtell. (Reuters)
  • PE plunges into NIL. (FT)
  • Tech leaders school Congress on AI. (NYT)
Categories
10 For 10

10 For 10: Top Compliance Stories For the Week Ending September 9, 2023

Welcome to 10 For 10, the podcast which brings you the week’s Top 10 compliance stories in one podcast each week. Tom Fox, the Voice of Compliance brings to you, the compliance professional, the compliance stories you need to be aware of to end your busy week. Sit back, and in 10 minutes hear about the stories every compliance professional should be aware of from the prior week. Every Saturday, 10 For 10 highlights the most important news, insights, and analysis for the compliance professional, all curated by the Voice of Compliance, Tom Fox. Get your weekly filling of compliance stories with 10 for 10, a podcast produced by the Compliance Podcast Network.

·       Insufficient cyber plan = FCA violation.  (DOJ Press Release)

·       Roger Ng banned for life.  (YaHooFinance)

·       FASB adopts crypto accounting rules. (WSJ)

·       Ken Paxton and slow creep of corruption. (Texas Tribune)

·       Spanish Women’s National team coach fired.  (ESPN)

·       Ramaswamy’s claims of FDA corruption disavowed by company he founded. (Reuters)

·       FIFA suspends head of Spanish football. (FT)

·       Using AI to improve workplace safety. (WSJ)

·       DOJ to go after Oligarch’s facilitators. (WSJ)

You can check out the Daily Compliance News for four curated compliance and ethics related stories each day, here.

Connect with Tom 

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Everything Compliance

Everything Compliance – Episode 123, The Spanish Kiss Edition

Welcome to the only roundtable podcast in compliance as we celebrate our second century of shows. In this episode, we have the quartet of Jay Rosen, Jonathan Armstrong, Matt Kelly and Karen Woody, with Tom Fox hosting. We conclude with our always popular and fan fav Shout Outs and Rants.

1. Matt Kelly looks at the new SEC requirement for companies to improve their risk assessments and attendant processes. He rants about the US Federal Courts not allowing television cameras and says we need the Trump trials televised in federal courts.

2. Karen Woody reviews Opinion Release 23-01. She shouts out to the Barbie movie.

3. Tom Fox shouts out to Megan Rapinoe for great professional career and her social activism while a member of the USWNT.

4. Jay Rosen looks at the imbroglio surrounding the Spanish National football team after its Women’s World Cup win. Rosen shouts out SOCAR, the South Orange County Compliance and Ethics Roundtable.

5. Jonathan Armstrong considers the NATS air traffic debacle and operational resilience. He shouts out Sgt. Graham Saville who lost his life helping a person in distress.

The members of the Everything Compliance are:

•       Jay Rosen– Jay is Vice President, Business Development Corporate Monitoring at Affiliated Monitors. Rosen can be reached at JRosen@affiliatedmonitors.com

•       Karen Woody – One of the top academic experts on the SEC. Woody can be reached at kwoody@wlu.edu

•       Matt Kelly – Founder and CEO of Radical Compliance. Kelly can be reached at mkelly@radicalcompliance.com

•       Jonathan Armstrong –is our UK colleague, who is an experienced data privacy/data protection lawyer with Cordery in London. Armstrong can be reached at jonathan.armstrong@corderycompliance.com

•       Jonathan Marks can be reached at jtmarks@gmail.com.

The host and producer, ranter (and sometime panelist) of Everything Compliance is Tom Fox the Voice of Compliance. He can be reached at tfox@tfoxlaw.com. Everything Compliance is a part of the Compliance Podcast Network.

Categories
Blog

AI and GDPR

Artificial Intelligence (AI) has revolutionized various industries, but with great power comes great responsibility. Regulators in the European Union (EU) are taking a proactive approach to address compliance and data protection issues surrounding AI and generative AI. Recent cases, such as Google’s AI tool, Bard, being temporarily suspended in the EU, have highlighted the urgent need for regulation in this rapidly evolving field. I recently had the opportunity to visit with GDPR maven Jonathan Armstrong on this topic. In this blog post, we will delve into our conversations about some of the key concerns raised about data and privacy in generative AI, the importance of transparency and consent, and the potential legal and financial implications for organizations that fail to address these concerns.

One of the key issues in the AI landscape is obtaining informed consent from users. The recent scrutiny faced by video conferencing platform Zoom serves as a stark reminder of the importance of transparency and consent practices. While there has been no official investigation into Zoom’s compliance with informed consent requirements, the company has retracted its initial statements and is likely considering how to obtain consent from users.

It is essential to recognize that obtaining consent extends not only to those who host a Zoom call but also to those who are invited to join the call. Unfortunately, there has been no on-screen warning about consent when using Zoom, leaving users in the dark about the data practices involved. This lack of transparency can lead to significant legal and financial penalties, as over 70% of GDPR fines involve a lack of transparency by the data controller.

Generative AI heavily relies on large pools of data for training, which raises concerns about copyright infringement and the processing of individuals’ data without consent. For instance, Zoom’s plan to use recorded Zoom calls to train AI tools may violate GDPR’s requirement of informed consent. Similarly, Getty Images has expressed concerns about its copyrighted images being used without consent to train AI models.

Websites often explicitly prohibit scraping data for training AI models, emphasizing the need for organizations to respect copyright laws and privacy regulations. Regulators are rightfully concerned about AI processing individuals’ data without consent or knowledge, as well as the potential for inaccurate data processing. Accuracy is a key principle of GDPR, and organizations using AI must conduct thorough data protection impact assessments to ensure compliance.

Several recent cases demonstrate the regulatory focus on AI compliance and transparency. In Italy, rideshare and food delivery applications faced investigations and suspensions for their AI practices. Spain has examined the use of AI in recruitment processes, highlighting the importance of transparency in the selection process. Google’s Bard case, similar to the Facebook dating case, faced temporary suspension in the EU due to the lack of a mandatory data protection impact assessment (DPIA).

It is concerning that many big tech providers fail to engage with regulators or produce the required DPIA for their AI applications. This lack of compliance and transparency poses significant risks for organizations, not just in terms of financial penalties but also potential litigation risks in the hiring process.

To navigate the compliance and data protection challenges posed by AI, organizations must prioritize transparency, fairness, and lawful processing of data. Conducting a data protection impact assessment is crucial, especially when AI is used in Know Your Customer (KYC), due diligence, and job application processes. If risks cannot be resolved or remediated internally, it is advisable to consult regulators and include timings for such consultations in project timelines.

For individuals, it is essential to be aware of the terms and conditions associated with AI applications. In the United States, informed consent is often buried within lengthy terms and conditions, leading to a lack of understanding and awareness. By being vigilant and informed, individuals can better protect their privacy and data rights.

As AI continues to transform industries, compliance and data protection must remain at the forefront of technological advancements. Regulators in the EU are actively addressing the challenges posed by AI and generative AI, emphasizing the need for transparency, consent, and compliance with GDPR obligations. Organizations and individuals must prioritize data protection impact assessments, engage with regulators when necessary, and stay informed about the terms and conditions associated with AI applications. By doing so, we can harness the power of AI while safeguarding our privacy and ensuring ethical practices in this rapidly evolving field.

Categories
Data Driven Compliance

Data Driven Compliance: Julie Myers Wood – Using AI for Data Driven Compliance

Are you struggling to keep up with the ever-changing compliance programs in your business? Look no further than the award-winning Data Driven Compliance podcast, hosted by Tom Fox, is a podcast featuring an in-depth conversation around the uses of data and data analytics in compliance programs. Data Driven Compliance is back with another exciting episode The intersection of law, compliance, and data is becoming increasingly important in the world of cross-border transactions and mergers and acquisitions.

In this podcast episode, Tom Fox and Julie Myers Wood, CEO at Guidepost Solutions take a deep dive into the intersection of compliance and generative AI and how this intersection will lead to more data driven compliance.  Wood emphasizes the importance of understanding the various ways AI can impact a company, including internal use, sales, compliance tools, freelancers, and criminal exploitation. Compliance teams need to have a comprehensive inventory of the tools being used and understand the capabilities and limitations of AI to ensure compliance and mitigate risks.

They discussed the need for companies to be aware of the potential risks associated with AI and have clear policies and procedures in place to protect intellectual property. He also discusses the importance of employee retraining and thoughtful decision-making when integrating AI into business practices. Overall, the podcast provides valuable insights into the challenges and considerations of incorporating AI into compliance programs, emphasizing the need for compliance professionals to adapt and stay informed.

Highlights Include

·      Key Considerations for Compliance and AI

·      Importance of Inventorying Tools and Managing Risks

·      AI and Intellectual Property Protection

·      Challenges of Implementing AI

·      AI and Compliance

Resources:

Julie Myers Wood on LinkedIn

Guidepost Solutions

 Tom Fox 

Connect with me on the following sites:

Instagram

Facebook

YouTube

Twitter

LinkedIn

Categories
Daily Compliance News

Daily Compliance News: September 5, 2023 – The Pig-Butchering Edition

Welcome to the Daily Compliance News. Each day, Tom Fox, the Voice of Compliance brings to you compliance related stories to start your day. Sit back, enjoy a cup of morning coffee and listen in to the Daily Compliance News. All, from the Compliance Podcast Network. Each day we consider four stories from the business world, compliance, ethics, risk management, leadership or general interest for the compliance professional.

  • US sanctions Russian company for selling rockets to North Korea. (WSJ)
  • Pig-butchering and crypto. (WSJ)
  • Using AI to improve workplace safety. (WSJ)
  • Do you need to know? (WSJ)
Categories
Compliance and AI

Compliance and AI – Jonathan Armstrong on Unleashing Generative AI: Privacy, Copyright, and Compliance

What is the role of Artificial Intelligence in compliance? What about Machine Learning? Are you using ChatGPT? These questions are but three of the many questions we will explore in this exciting new podcast series, Compliance and AI. Hosted by Tom Fox, the award-winning Voice of Compliance, this podcast will look at how AI will impact compliance programs into the next decade and beyond. If you want to find out why the future is now, join Tom Fox on this journey to the frontiers of AI.

Welcome back to another exciting episode of our podcast, where we delve into the fascinating world of compliance and artificial intelligence (AI). Today I am joined by Jonathan Armstrong from Cordery Compliance to discuss how regulators in the EU are looking at AI.

Regulators in the EU are taking action to address the use of artificial intelligence (AI) and generative AI. A recent case involving Google’s AI tool, Bard, being temporarily suspended in the EU highlights the need for regulation and compliance in this rapidly evolving field. Concerns are raised about data and privacy, as generative AI uses large amounts of data, potentially infringing copyright and processing individuals’ data without consent. It is crucial for organizations to conduct data protection impact assessments and consider GDPR obligations. Transparency and consent are also key, with Zoom’s data practices being questioned in terms of transparency and obtaining user consent. The conversation emphasizes the potential legal and financial consequences organizations face for non-compliance.

Remember, compliance professionals are the co-pilots of our businesses, guiding us through the complexities of the AI revolution. Let’s not wait too long between podcasts and continue this journey together!

Key Highlights

·      Concerns with Bard

·      Regulators’ Actions on AI

·      Concerns over Data and Privacy in Generative AI

·      Transparency and Consent in Zoom’s Data Practices

 Resources

For more information on the issues raised in this podcast, check out the Cordery Compliance, News Section. For more information on Cordery Compliance, go their website here. Also check out the GDPR Navigator, one of the top resources for GDPR Compliance by clicking here.

Connect with Jonathan Armstrong

●      Twitter

●      LinkedIn

Tom Fox

Instagram

Facebook

YouTube

Twitter

LinkedIn