How AI Will Change The Future Of Compliance?
Artificial intelligence has the potential to transform compliance and legal departments. From LMS to efficient contract management systems, AI holds promise for in-house counsels and compliance managers.
With talks of artificial intelligence impacting jobs and functional roles, here is what the top General Counsels had previously said about AI changing the compliance domain. The common sentiment is bullish, to say the least. However substantial data to yield results, in an uncertain future, is a must.
Atul Juvle, General Counsel, Compliance Officer & Company Secretary—India & South Asia, Schindler India
With work-from-home and legal system/administration, moving and working effectively on a digital platform, we can’t stop any more AI coming in as an aid to this change, first and then becoming a normal way of life in the near future. Some part of work is already under AI, which will increase. The digital legal system working, brought to the doorstep by covid-19, much faster than dreamt. This is going to boost the use of AI near future, which was estimated 3/7 years down the line.
Rajendra Misra, Executive Vice President & General Counsel | The Indian Hotels Company
I firmly believe that Technology can improve the efficiencies of the inhouse legal team, particularly in today’s day and age when the whole world is going digital. Technology does not just make life easier, it is imperative in today’s digital world. The spread of the pandemic and the consequent lockdowns have also made it abundantly clear that Technology can be a lifesaver in this VUCA world. Especially for a multi-locational / multi-unit organization, a Compliance management platform facilitates ease of compliance tracking, mitigating legal risks for the company and its senior management. I have leveraged Technology in order to create e-learning modules (LMS) for spreading legal awareness amongst the Business teams and other Corporate functions, by presenting legal knowledge in simple terms in AV format. We will see more online billing/reporting systems, AI-based GRC systems etc. being deployed across organizations.
Amitabh Lal Das, General Counsel, Bajaj Auto
AI must have a substantive base of data to yield results and I am not aware if many companies are doing that. However, in case they are doing so and there are AI-based offerings made available, the same will help in the detection and monitoring part of compliance frameworks. That, in turn, will enable targeted remediation as well as training and that too at the root cause level. In Legal, AI should help more in strengthening research and the quality of arguments because of the incisiveness that will emerge out of AI-based tools.
Parveen Mahtani, Chief Legal Officer, Mahindra Lifespace Developers
Digitising compliance is absolutely essential for any company. With the magnitude of legislation applicable for any sector as also the increased quantum of penalties or criminality of offences, the only way to manage compliance is through AI. The options in tools are several where they can be customised to provide varied reports based on risk factors, region or project compliance or statute-specific compliance.
Arshdeep Singh, Head - Legal & Compliance and Vice President, Amplus Solar
Compliance is not an option anymore, it is a must in today’s world. The automation tools for compliance assist the users in continually monitoring and notifying the compliance requirements to be fulfilled by the companies. However, human intervention will always be needed to ensure the efficiency and effectiveness of the compliance process to be adhered to. Further, such tools also expose the company to various data theft and security control risks, hence should be monitored on a regular basis to check such glitches.
Sameet Gambhir, Vice President (Corp. Law) & Company Secretary, DCM Shriram Ltd
I think AI and things like Metaverse and Blockchain are already present and are a reality today. One really can’t say what the future will be if we see the speed at which these things are emerging. Five years down the line, I think there will be other things which we haven’t even heard of today. At the kind of speed at which we live today, predicting 1-2 years ahead is also not possible. By the time we think its future it has already become present and reality. Governance and compliance function is also seeing rapid changes. We have all the new tools and AI-enabled technologies helping the function. Whether it’s contracting through AI or litigations or prediction of the outcome of any disputes/litigation is all real now. Things are so transparent today that when we talk about governance, even a small step in the wrong direction can put you in great danger or reputational issues. The world is changing so fast that no one knows what the reality will be tomorrow. Not sure if even the human mind's creativity will be there, or that too will be taken by AI. I am told today we have robots which have emotions and creative thinking like the human mind as well. Sometimes one gets scared also that in which world we will be going. Hopefully, all this technology should be for good and not for hurting humans.
Jyotsna Sharma, General Counsel, Rario
I am bullish on all emerging technology; AI becoming part of any function will increase productivity and reduce time spent on mundane tasks. Legal departments or even law firms are not absolved from this.
Lawyers generally are the last ones to adapt to new technology. I still know that some lawyers still prefer to work on desktops and are rigid about using technology. I feel that AI has the potential to transform how lawyers work. Already, machine learning – a type of AI – is used for legal research and for pilot programs attempting to predict litigation outcomes. AI is helping lawyers automate repetitive tasks – like drafting lower-exposure or lower-liability agreements like NDAs. AI also empowers in-house counsel in areas such as predictive coding, saving attorneys time by using samples of data to identify relevant documents in connection with e-discovery requests. The bottom line is that whether we like it or not, technology is here to stay; either we keep up with it and focus on minimizing time on repetitive work, or it will become obsolete.
