THE IMPACT OF ARTIFICIAL INTELLIGENCE ON REGULATORY COMPLIANCE

Sravanthi Gandu*, A. Sandhya, Lalitha Repudi, Manisha Daram.

The advent of artificial intelligence (AI) is transforming regulatory compliance, enabling businesses to streamline processes, improve accuracy, and mitigate risks. AI-powered compliance solutions can analyze vast amounts of data, identify patterns, and detect anomalies, facilitating real-time monitoring and reporting. This paper explores the trans-formative impact of AI on regulatory compliance, highlighting its benefits, challenges, and future outlook. Key areas of focus include data protection, anti-money laundering, financial reporting, and cyber-security. As AI continues to evolve, businesses must navigate the complexities of AI-driven compliance, balancing efficiency gains with the need for transparency, explain ability, and human oversight. AI technologies, including machine learning, natural language processing, and predictive analytic s,offer innovative solutions to these challenges. AI enhances data management and analysis by automating data collection, processing, and reporting, thereby increasing accuracy and efficiency. Predictive maintenance and risk assessment tools powered by AI can identify potential compliance issues before they arise, allowing for proactive measures.  Moreover, AI-driven compliance monitoring systems enable real-time tracking of regulatory adherence, reducing the risk of non-compliance and associated penalties. Automated auditing and inspection processes further streamline compliance checks, ensuring thorough and consistent evaluations.  Case studies demonstrate successful AI implementations in regulatory compliance, such as automated reporting systems in offshore drilling and predictive maintenance in pipeline management, which have resulted in improved compliance rates and reduced operational risks. However, the adoption of AI is not without challenges. Issues related to data quality and integration, cybers ecurity, and regulatory acceptance pose significant hurdles. Additionally, ethical and legal considerations surrounding AI deployment must be addressed to ensure responsible use.