Artificial intelligence (AI) is no longer a concept on the horizon; it is here, and it is rapidly becoming part of everyday business operations. In compliance, where regulatory expectations and operational pressures continue to rise, AI presents an opportunity to enhance both efficiency and accuracy without compromising on control.
But as with any new technology, it is not about replacing people, it is about empowering teams to work smarter, respond faster and reduce manual burden across routine tasks.
So how can compliance functions start to make practical use of AI?
Where AI Adds Value in Compliance
Financial Crime Prevention: By now, you have probably seen use cases for AI for KYC/AML compliance. Due to the volume and frequency of transactions, this makes a perfect use case, and it is ideal for enhancing efficiency, accuracy, and scalability in compliance processes. AI can streamline customer onboarding, monitor transactions in real-time, identify suspicious activities, and ensure adherence to regulatory requirements. By leveraging machine learning algorithms and predictive analytics, financial institutions can reduce false positives, improve risk assessments, and maintain robust anti-money laundering (AML) and know-your-customer (KYC) frameworks, ultimately saving time and resources while mitigating compliance risks.
But where else can AI add value?
While AI cannot make judgment calls or define your policies, it can help streamline and support other core compliance processes, including:
- Data Extraction and Document Review
AI tools can help automate the review of policy documents, regulatory texts and due diligence reports, extracting key information faster than a manual review would allow and highlighting areas that may need attention. If you are not using tools that specialise in compliance like ViCA (Virtual Compliance Assistant), then give it a try and be prepared to experience significant improvements in efficiency and accuracy within your compliance processes. These tools can reduce the time spent on manual reviews, minimise the risk of human error, and ensure that critical regulatory requirements are not overlooked. AI surpasses manual review by being faster, more accurate, and consistent, reducing human error, and efficiently handling large volumes of complex data, freeing up resources for strategic tasks.
- Monitoring and Alerts
AI can process vast amounts of data rapidly and identify patterns that humans might overlook. This capability is particularly valuable in improving compliance by enabling faster detection of risks and irregularities.
One of the most practical applications of AI is marketing or specifically with Financial Promotions Approvals process.
Marketing must comply with both business and regulatory policies. This includes ensuring message consistency, accurate brand representation (such as fonts and colour schemes), and adherence to requirements like clear disclaimers, non-misleading promises or guarantees, and considerations for consumer duty. It also involves addressing issues related to vulnerable customers, high-risk products, and other critical compliance factors.
AI enhances this process by providing robust checks and balances, automating the identification of non-compliant elements, and ensuring adherence to both internal policies and external regulations. This not only improves the efficiency of compliance processes but also reduces the risk of regulatory breaches.
- Risk Scoring and Prioritisation
AI can assist in assigning risk scores based on predefined criteria, dynamically updating them as new information is introduced. This allows compliance teams to prioritise and address the most pressing concerns efficiently.
Additionally, this feature enhances the confidence level of AI-generated suggestions. Firms can leverage these risk scores to establish thresholds within their workflows, enabling automated escalation or streamlined review and approval processes. By integrating such capabilities, organisations can improve decision-making, reduce manual effort, and ensure a more robust and efficient compliance framework.
Balancing Innovation with Responsibility
The FCA has signalled both interest and caution around AI adoption. While innovation is welcomed, firms must be able to demonstrate that AI tools are being used responsibly and that outcomes remain aligned with regulatory expectations.
That means keeping human oversight in the loop, ensuring transparency around how tools are used and maintaining clear audit trails that explain decisions.
In short: AI should enhance compliance, not obscure it.
The ComplyPortal Approach
At ComplyPortal, we are continually exploring how AI can be integrated in meaningful, secure and regulatory-aligned ways, always with the aim of reducing friction for compliance teams.
Whether it is through smart automation, improved reporting, or risk visibility tools, the goal is always the same: make compliance more efficient, without losing control.
One practical example of this is ComplyPortal’s Financial Promotions Approval Workflow, now enhanced with AI-powered document scanning. This feature allows firms to automatically extract and flag key terms, disclaimers, or potential regulatory red flags from promotional materials, significantly reducing manual review time while ensuring compliance with FCA requirements. It is a step forward in applying AI where it truly adds value: streamlining checks without compromising regulatory integrity.
Final Thoughts
AI is not a silver bullet, but used thoughtfully, it can offer real, measurable benefits in today’s compliance environment. From faster reviews to smarter alerts, compliance teams have more tools at their disposal than ever before.
The key is knowing where to start and how to make these tools work for your firm’s specific needs.
Discover our all-in-one compliance solution, featuring ComplyPortal, ViCA, and eLearning tools, designed to simplify your regulatory obligations.
From workflow automation to virtual compliance support and team training, everything you need is in one place.
👉 Book a demo to see how it all works!
