As artificial intelligence (AI) rapidly evolves, it’s becoming clear that its role in compliance will be nothing short of transformative by 2025. From real-time monitoring to adaptive risk management, AI offers the potential to streamline compliance processes, enhance accuracy, and reduce risk. Yet, with this transformation come new challenges that security and compliance teams will need to navigate. In this article, 13 CISOs and security leaders share their predictions on how AI will redefine compliance.
AI: Shifting from Point-in-Time Audits to Always-On Compliance
One of the most profound shifts AI brings to the compliance landscape is the move from traditional, point-in-time audits to a model of continuous compliance monitoring. Traditionally, companies have conducted audits periodically, often with a surge of activity leading up to an annual compliance check. AI, however, has the potential to fundamentally alter this model by enabling real-time compliance monitoring, allowing companies to address issues as they arise.
Continuous monitoring powered by AI will allow organizations to conduct “always-on” audits. Rather than waiting for issues to be flagged during annual reviews, AI-driven systems will constantly analyze data to identify potential compliance risks and alert teams to take immediate action. This shift not only ensures organizations stay in line with regulations but also reduces the likelihood of sudden, high-stakes surprises during audits.
Expert Insight: Real-Time Compliance with AI
Harsh Kashiparekh, CEO of Securis360, foresees a future where AI will serve as a real-time compliance guardian. He states, “AI will provide audit and comments in real time and generate alerts if any non-compliance is observed based on established policies.” Kashiparekh envisions AI as an active participant in compliance, enabling companies to take immediate corrective action rather than reactively addressing issues after an audit.
The ability to generate real-time alerts based on non-compliance with established policies will allow organizations to quickly rectify issues, ensuring compliance with both industry regulations and internal standards. In a landscape where regulatory expectations are constantly evolving, this capability could be a game-changer for companies seeking to stay ahead of potential risks.
Benefits of AI-Driven Compliance
- Enhanced Accuracy and Reduced Human Error:
By automating key aspects of compliance monitoring, AI can drastically reduce human error, which is often a major contributor to compliance failures. With AI, compliance teams can rely on data-driven insights and real-time alerts, allowing for faster and more precise responses to potential risks. - Adaptive Risk Management:
AI can help companies develop adaptive risk management strategies by analyzing trends and historical data. This adaptability will enable organizations to stay proactive, adjusting compliance efforts in response to emerging risks and new regulatory requirements. - Resource Efficiency:
Continuous monitoring with AI means that organizations can shift resources from routine audit preparation to more strategic compliance activities. This not only streamlines operations but also empowers compliance teams to focus on higher-level tasks and long-term improvements.
Challenges Ahead
While the benefits are clear, integrating AI into compliance isn’t without challenges. Organizations must ensure that their AI models are well-calibrated, transparent, and secure to avoid potential biases or inaccuracies in compliance monitoring. Furthermore, as regulators also start to leverage AI, companies will need to stay agile to keep pace with evolving regulatory frameworks.
The Future of Compliance: A Balance of Automation and Human Oversight
AI’s role in compliance by 2025 is expected to expand rapidly, but a fully automated approach may not be feasible—or even desirable. Human oversight will remain essential to interpret complex regulatory requirements and provide context that AI cannot. The ideal model will likely combine the power of AI-driven insights with the nuanced understanding of compliance professionals.
Conclusion
As we look to 2025, the impact of AI on compliance is set to be profound. By transforming traditional audit models and enabling real-time monitoring, AI will empower companies to manage compliance more effectively and proactively than ever before. For leaders like Harsh Kashiparekh, the future of compliance is not only about keeping up with regulations but also about harnessing technology to create a more agile, accurate, and efficient approach to compliance. As organizations embrace AI-driven compliance solutions, they will be better positioned to navigate the increasingly complex regulatory landscape with confidence.