The current challenge of Compliance Reporting

The industry is experiencing a surge in the amount of available and required financial data. Compliance professionals must gather data from various sources, analyse it and transform it to produce regulatory and governance reports. The escalation of these tasks, which is becoming more challenging and offer minimal value, leads to a significant rise in expenses.

In addition to the technical complexity to produce Compliance reports, the Financial Services industry is struggling to hire (and retain) compliance professionals. Financial institutions face an intense competition for skilled compliance talent, leading to higher compensation expectations. Adapting existing staff to meet evolving compliance needs adds further complexity to talent management strategies in this crucial sector.

This raises concerns regarding the substantial financial investment and workforce allocation required for legal reporting on an annual basis.

Generative AI: an immediate and concrete solution

Gen AI is able to create original content and adapt it to various objectives and requirements. By integrating advanced learning techniques, Gen AI achieves a better understanding and decision-making, leading to more natural interactions.

Unlike conventional AI, Generative AI relies less on pre-existing data or templates, utilizing its generative abilities to produce new outputs. Its adaptability and self-learning capabilities enable continuous improvement and a wider range of functionalities.

Gen AI can automate data retrieval from different source types, and structure it into usable content, ensuring a seamless process where the Gen AI writes a document entirely and autonomously.

Generative AI autonomously tailors the content of the reports to fit the identified audience, saving compliance professionals time in manual rephrasing or rewriting.

When applied to Compliance reporting, the immediate benefit of Generative AI is to reduce the effort of human experts, whose can dedicate more time on high-value tasks.

Taken this capacity into consideration, the production of Compliance reports with Generative AI becomes more automated:

1.     Data Retrieval: The tool automatically gathers data from diverse sources such as PDFs, Excel sheets, Word documents, internal tools, etc.

2.     Data Structuring: It organizes the retrieved data according to the relevant policies, reports and other regulatory templates. It identifies duplicates or useless content, it corrects wrong data, it filters essential data.

3.     Content Rewriting: Utilizing Gen AI, the tool autonomously rewrites the content to ensure it aligns with the intended audience or meets regulatory requirements. This may involve simplifying complex language, adjusting tone, or incorporating necessary legal terminology.

4.     Control: Once produced, the report is reviewed by the human expert, whose effort in the process is reduced by 60% to 80%.

5.     Report Distribution: Once the report is approved by the human expert, the tool is distributed to the pre-defined audience, internal or external.

Reply Luxembourg, and its branch e*Finance Consulting Reply, specialises in Management Consulting Services for Financial Institutions. It helps financial industry players to exploit new technologies, combining extensive industry expertise with full control of technological innovation.

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