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AI Game-Changing Compliance: Part 5, The Future of Compliance Education

Compliance training has traditionally been a one-size-fits-all, check-the-box exercise; from a yearly seminar and a PowerPoint presentation to an e-learning module employees rush through to meet requirements, it is dead. In 2025, compliance training is undergoing a radical transformation. Organizations are embedding compliance learning into daily workflows, leveraging microlearning, gamification, and AI-driven personalized training to make ethics and regulatory education more engaging, relevant, and effective.

The future of compliance training is no longer about forcing employees to sit through lengthy, irrelevant courses. Instead, it is about delivering the right compliance knowledge at the right time, when employees need it, to prevent violations before they occur. In Part 5 of our series on how AI is changing the game in compliance, we look at how companies use AI-powered embedded compliance training and gamification to revolutionize learning, improve retention, and strengthen corporate ethics.

Lessons for Compliance Professionals

1. Traditional Training is Outdated—AI and Gamification Are the Future  

As compliance professionals, we must acknowledge that yesterday’s models are ill-equipped to meet the challenges of a fast-evolving regulatory environment. Employees expect engaging, interactive, and immediately relevant training in their roles. AI-powered platforms offer a transformative solution by tailoring content to individual learning patterns and real-time challenges. Instead of passively absorbing information, employees can now take part in scenario-based simulations and interactive modules that mimic real-life compliance dilemmas.

This level of immersion reinforces critical policies and procedures and builds muscle memory for ethical decision-making under pressure. Integrating gamification into the learning process adds an element of friendly competition and reward, encouraging consistent engagement and deeper retention of complex regulatory frameworks. Advanced analytics further allows compliance teams to monitor engagement levels and adjust content on the fly, ensuring that every training session is as effective as it is innovative. Organizations can create a proactive culture of compliance by abandoning outdated methods in favor of AI-driven, gamified learning experiences.

2. One-Size-Fits Doesn’t Work—Customization is Key  

In the diverse landscape of modern organizations, a generic approach to compliance training will not suffice. Employees across various departments and job functions encounter unique compliance risks that demand tailored learning experiences. AI-driven personalized training platforms address this challenge head-on by analyzing individual roles, past performance, and learning styles to deliver customized content that hits home. Rather than sifting through lengthy, irrelevant training sessions, employees receive targeted lessons that directly relate to the specific scenarios they face on the job. This customization not only boosts engagement by reducing training fatigue but also empowers employees to understand better and manage the distinct regulatory risks associated with their functions.

A personalized approach creates a more efficient learning environment where employees can progress at their own pace, reinforcing best practices that directly apply to their daily tasks. Customized training ensures that resources are allocated wisely, strengthening areas of high risk and providing additional support where needed. As compliance professionals, embracing a tailored training approach means we can more effectively safeguard our organizations against potential violations and foster an environment where continuous improvement in regulatory adherence is the norm.

3. Real-Time Compliance Training Is Proactive  

Proactive, real-time compliance training is emerging as the most effective way to mitigate risk before it escalates into a full-blown problem. With advancements in AI, compliance platforms can now provide instant, context-sensitive alerts to employees as they encounter decision points in their daily work. Imagine an employee receiving an immediate prompt that clarifies a regulatory nuance or warns against a potential conflict of interest while processing a transaction. This just-in-time training approach not only reinforces the correct behaviors but also minimizes the window of exposure to non-compliant practices.

The predictive capabilities of AI enable these systems to learn from past incidents, fine-tuning alerts to ensure that they are both timely and relevant. This preemptive measure is far more effective than post-violation training, which often comes too late to prevent reputational and financial damage. Real-time guidance helps create an environment where compliance becomes integral to every decision, embedding ethical considerations into the workflow. For compliance professionals, this means having the tools to continuously monitor and support employees, reducing the incidence of violations, and fostering a culture of accountability. By shifting our focus to preventive measures, we can create a safer, more responsive workplace prioritizing ethical conduct over-reactive corrections.

4. Gamification and Microlearning Increase Knowledge Retention  

The traditional classroom-style approach to compliance training, characterized by lengthy sessions and dense material, often falls short in capturing and keeping employee attention. In contrast, gamification and microlearning techniques offer an engaging alternative that transforms the learning process into an interactive experience. By breaking down complex compliance concepts into bite-sized, digestible modules, microlearning allows employees to absorb information at a manageable pace without feeling overwhelmed. When these modules incorporate gamified elements—such as point systems, leaderboards, and interactive challenges—learning becomes a dynamic process that stimulates healthy competition and reinforces knowledge through repetition.

This method makes the training more enjoyable and significantly boosts retention rates, as employees are more likely to remember lessons that are presented in a fun and engaging format. Gamification creates a narrative around compliance, turning what was once seen as a chore into a stimulating journey of discovery and mastery. Frequent, short bursts of training to ensure that the material stays fresh in employees’ minds, helping them recall essential information when needed. For compliance professionals, these innovative training methods provide a dual benefit: they ensure that the workforce is well-versed in compliance matters and foster a proactive attitude towards ongoing learning. The result is a culture where compliance is not just a set of rules to follow but a series of continuous learning opportunities that build a foundation of ethical behavior and risk awareness. Embracing gamification and microlearning ultimately leads to more effective training outcomes, a more engaged workforce, and a lower likelihood of compliance breaches.

5. What AI Brings to Training Effectiveness  

Integrating AI and advanced data analytics into compliance training programs is a game changer. Modern compliance platforms now harness the power of artificial intelligence to meticulously track employee progress, pinpoint knowledge gaps, and even predict potential high-risk areas before they materialize into violations. This technology enables compliance professionals to move beyond a reactive stance and adopt a proactive strategy, where training is continuously refined based on real-time performance data.

If analytics reveal that certain departments consistently struggle with understanding new regulatory changes, targeted remedial training can be deployed immediately. The insights gained from AI analytics allow compliance teams to measure the effectiveness of their training initiatives with unprecedented precision, enabling continuous improvement. The feedback loop created by these insights is invaluable. It informs the development of new training modules, ensures content remains relevant to emerging risks, and supports a culture of accountability and excellence. For the corporate compliance audience, this means a significant leap forward in mitigating risks, reducing the incidence of costly breaches, and ultimately protecting the organization’s reputation.

The Future is Now: Gamification and Compliance Training 

Imagine an employee stepping into a fully interactive digital world where ethical challenges, ranging from workplace harassment to safety violations and fraud, are simulated with remarkable accuracy. In this setting, every decision the employee makes is tracked by AI, which adapts the simulation to reflect the potential consequences of their choices. This dynamic feedback loop creates a compelling training scenario where the risks of non-compliance are not merely explained in a classroom but are experienced firsthand. As a result, employees gain practical insights into the ramifications of unethical behavior without ever facing real-world penalties, thereby reducing the likelihood of future violations.

Walmart’s VR Ethics and Compliance Training program is a prime example of this innovative training method. Walmart has harnessed the power of VR to create training modules that place employees in various challenging scenarios, such as encountering workplace harassment or facing safety violations. In these simulated environments, employees must make split-second ethical decisions, mirroring the pressure and uncertainty of real-life situations. The immersive nature of VR means that participants are not passive recipients of information but active problem solvers who must engage critically with the content. This method has proven remarkably effective, as evidenced by Walmart’s reported 30% decrease in policy violations following implementing their VR-based training program.

For compliance professionals, the implications of such technology are profound. First, it represents a shift from traditional, lecture-based training to an interactive, experiential learning model that drives engagement and retention. Employees are more likely to remember and apply what they learn when they have “lived” the experience instead of merely reading about it. The adaptability of AI ensures that training content can be continuously updated and customized to reflect the latest regulatory changes and emerging risks. This agility is crucial in today’s fast-paced regulatory environment, where compliance standards strengthen rapidly, and companies must be prepared to adapt.

AI-driven simulations provide valuable data analytics that allow compliance teams to measure training effectiveness with unprecedented precision. Organizations can identify knowledge gaps by analyzing how employees interact with simulated scenarios and adjust their training strategies accordingly. This enhances the overall effectiveness of compliance programs and reinforces a proactive approach to risk management.

Integrating AI-powered compliance simulations and VR technology significantly evolves compliance training. It offers a realistic, engaging, and data-informed approach to preparing employees for ethical decision-making, ultimately reducing policy violations and fostering a culture of proactive compliance. As the corporate world continues to navigate an increasingly complex regulatory landscape, embracing these innovative training methods is essential for any organization committed to maintaining the highest standards of integrity and accountability.

Conclusion

The future of compliance training is undeniably interactive, embedded, and powered by AI. By harnessing the potential of AI-driven personalization, gamification, real-time guidance, micro-learning, and immersive simulations, organizations can elevate compliance education from a mundane obligation to a dynamic, engaging experience. This transformation makes training more enjoyable and aligns it with today’s fast-paced, risk-aware corporate landscape. Such innovative methods ensure that learning is directly tied to real-world challenges, fostering a culture of continuous improvement and ethical decision-making that resonates with every employee.

For compliance professionals, the message is unmistakable. Embracing AI and gamification in compliance training is no longer optional but essential. Organizations that modernize their compliance education strategies can significantly mitigate policy violations, boost employee engagement, and reduce the likelihood of regulatory scrutiny. By investing in cutting-edge training methodologies, companies build a resilient framework that supports ethical conduct and proactive risk management. In doing so, they safeguard their operations against potential breaches and reinforce their reputation as forward-thinking leaders in a complex regulatory environment.

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The Corruption Files

Episode 14 – Walmart with Tom Fox and Michael DeBernardis

Rapid expansion presents great opportunity and great risk.

Tom Fox and Michael DeBernardis go deep into the Walmart bribery case, why immediate cooperation matters, tips for companies to prevent similar problems, the best course of action when working internationally, and projecting risk regardless of industry.

▶️ The Walmart Enforcement action with Tom Fox and Michael DeBernardis. 

Key points discussed in the episode:

  1. Tom Fox lays out the facts of the Walmart case. Michael points out how prevention could have saved millions of investigation costs.
  2. Rapid expansion presents great opportunity and risk. Tom emphasizes that extensive remediation and cooperation can bring significant credit.
  3. Michael explains Walmart’s underwhelming conduct. Tom brings up the congressional investigation, leader exits, and the business implications of publicizing.
  4. Michael shares his advice to avoid Walmart’s case – setting realistic and proper incentives. He also provides hypothetical counsel if he could work with Walmart when the issue broke out.
  5. Michael highlights the importance of timeliness, engaging with regulators as early as possible, and providing FCPA training when asked.

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Do you have a podcast (or do you want to)? Join the only network dedicated to compliance, risk management, and business ethics, the Compliance Podcast Network. For more information, contact Tom Fox at tfox@tfoxlaw.com.

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Daily Compliance News

November 16, 2022 the Let the Games Begin Edition

In today’s edition of Daily Compliance News:

  • Cyber insurance markets harden. (WSJ)
  • Former Kazak official jailed for corruption. (RadioFreeEurope)
  • Oral argument set for Trump Special Master. (Reuters)
  • Walmart to pay $3.1bn for opioid settlement. (NYT)

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This Week in FCPA

Episode 279 – the Happy Hanukkah Edition

Hanukkah comes early this year. As the Rosen household begins its annual celebration, Tom and Jay are back to look at some of the week’s top compliance and ethics stories this week in the Happy Hanukkah edition. 

Stories

1.     Preparing for dawn raid in the era of hybrid work? Andrew Reeves and Annie Birch in FCPA Blog.
2.     When you fight corruption, it fights back. Rick Messick in GAB.
3.     Why does Walmart want to keep an exec quiet about its compliance program? Dick Cassin explores in the FCPA Blog.
4.     Board effectiveness survey.  Paul DiNicola and Leah Malone in the Harvard Law School Forum on Corporate Governance.
5.     New OECD ABC suggestions. Nicola Bonucci and Nat Edmonds in the FCPA Blog.
6.     Graybeards and Youngbloods working together. Carrie Root in CCI.
7.     Trust in companies ‘shockingly’ low? Lawrence Heim in PracticalESG.
8.     Are senior level compliance positions becoming harder to find and fill? Matt Kelly explores in Radical Compliance.
9.     Role of PwC in Tesla/JPMorgan dispute. Francine McKenna explores in The Dig (sub req’d).
10.  How will tech change the work landscape in 2022? Check out this pod with Mrs. Monitor (AKA Rebecca Rosen) on Freshbrewed Tech. 

Podcasts and Events

11.  How can you show ROI from your internal investment in compliance? Nick and Gio Gallo join Tom Fox in the most unusual pod series, Mining the Gold in Compliance. Part 1 – ROI on Compliance. Purchase Decisions. Part 2 – Extending Compliance Value Across an Organization. Part 3 – Compliance and ESG Investments. Part 4 – Finance and Investing Models for Compliance. Part 5 – Investment Strategies for the Compliance Professional.
12.  Are you exasperated? Then check, F*ing Argentina. In this podcast series co-hosts Tom Fox and Gregg Greenberg, author of F*ing Argentina explore the current American psyche of being overworked, over leveraged, overtired and overwhelmed. Find out about modern America’s exasperation with well…exasperation. In Episode 11, a birthday party battle through text messages.
13.  In November on The Compliance Life, I visited with Wendy Badger, CCO at Tennant. In Part 1, she detailed her academic career and early professional life. In Part 2, changing ladders to advance your career. In Part 3, Wendy moved into the CCO Chair. In Part 4, Wendy talked about having courage in your career choices and compliance into the future. Next week, we begin the December series with Matt Silverman, Director of Trade Compliance at VIAVI.
14.  The Compliance Podcast Network welcomes Professor Karen Woody and her new podcast, Once Upon a Trading Law: The History of Insider Trading. In this most unique pod, Karen interviews some of her student to tell the history of insider trading. Check out Episode 1, which looks at the beginnings of insider trading.
15.  Join Tom, Mike Volkov, Carrie Penman, Dr. Pat Harned and Skip Lowney (an all-star panel if there ever was one) for the ECI webinar on the intersection of compliance and E&C programs. Wednesday, December 15, from 2-3:30 ET. Registration and information here.
Tom Fox is the Voice of Compliance and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.

Categories
FCPA Compliance Report

Walmart FCPA Settlement

In this special bonus podcast, I am joined by Jay Rosen to discuss the stunning resolution to one of the longest running bribery, corruption and money-laundering sagas on the international stage, the FCPA enforcement action against the world’s largest retailer–Walmart. Some of the highlights include:

  • The background facts;
  • How significant is the case;
  • Is the penalty too low (or too high)?
  • Response of Walmart;
  • Lessons learned for the compliance professional;
  • Was there self-disclosure and full cooperation?
  • How should we analyze the monitor requirement under the Benczkowski Memo?

Resources:
The documents for this matter include:
From the Department Of Justice

  1. Criminal Information
  2. Non-Prosecution Agreement
  3. Plea Agreement and Statement of Facts
  4. Press Release

From the SEC, aCease and Desist Order and Press Release.
See also Tom’s Blog Post Walmart Enforcement Action-Part 1: Introduction. Tom will have multiple blog posts on the Walmart enforcement action so keep abreast on the FCPA Compliance Report.

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This Week in FCPA

Show Notes for This Week in FCPA-Episode 159, week ending June 21, 2019 – the KPMG Trainwreck and Walmart Settles edition

With KPMG in the news for one of the biggest ethical trainwrecks in recent memory (or since the last biggest ethical trainwreck-Walmart) Tom and Jay return to discuss both events some of this week’s top compliance and ethics stories which caught their collective eyes.

  1. Wal-Mart settles. Harry Cassin breaks the story for the compliance community in the FCPA Blog.
  2. The KPMG ethical trainwreck catapults off the tracks with a SEC enforcement action. Francine McKenna with the most comprehensive reporting. Tom and Matt Kelly explore in separate blog posts.
  3. What is the role of the WTO in global anti-corruption enforcement? Luciana Silveira explores.
  4. Banks behaving badly (Part 1,304,555). Swedebank suspends execs from its Estonia branch. Dominic Chopping reports in WSJ. Deutsche Bank under criminal investigation for AML violation. David Enrich, Ben Protess and William K. Rashbaum report.
  5. NAVEX Global published a first-of-its-kind ethics and compliance benchmark report. Jaclyn Jaeger reviews.
  6. What are the data security/data privacy issues from using Slack? Jim Murphy explains.
  7. Designing an ethical company is easy. So says Jeff Kaplan.
  8. Why are negligence and willfulness different standards? Greg Morvillo and Christine Handley explore.
  9. Dylan Tokar joins the WSJ Risk and Compliance Journal. See his twitter You can reach him at dylan.tokar@wsj.com.
  10. Why does one size not fit all? Jay continues his series on working with monitors.
  11. This week Tom had a special 5-part podcast series sponsored by Assent Compliance on the emerging regulatory challenges in Supply Chain management. Check out the following: Part 1-Ithe HTS Landscape; Part 2-instituting a broader Risk Management Program; Part 3– CSR value proposition; Part 4-Conflict Minerals/Responsible Minerals; Part 5-scaling up to meet challenges.  The podcast is available on multiple sites: the FCPA Compliance Report, iTunes, JDSupra, Megaphone,YouTube,  Spotifyand Corporate Compliance Insights. The Compliance Podcast Networkjoins C-Suite Radio.
  12. Tom is keynoting next week (June 28) at the University of Miami conference “Compliance Across Borders”. For information and registration click here. In Europe and want to attend a great compliance conference? Tom will be keynoting at Circle of Compliance forum on July 3 and 4 in Paris. For more information and registration, click here.

Tom Fox is the Compliance Evangelist and can be reached at tfox@tfoxlaw.com. Jay Rosen is Mr. Monitor and can be reached at jrosen@affiliatedmonitors.com.
For more information on how an independent monitor can help improve your company’s ethics and compliance program, visit our sponsor Affiliated Monitors at www.affiliatedmonitors.com.

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Daily Compliance News

Daily Compliance News: June 21, 2019 Walmart settles edition

In today’s edition of Daily Compliance News (all dedicated to the Walmart FCPA settlement):