How Real is ‘Artificial’ Intelligence to Enforce Compliance for Procurement?
Today, businesses are prone to a number of violations in regulation, safety, security and irresponsible operations. This is way too much for human control and therefore resorting to artificial intelligence is the most intelligent bet.
The traditional method of implementing compliance by way of allocating compliance personnel in various departments and functions—often so silo-ed—is simply a fail. It costs businesses to spend millions in audits, testing, interviewing, collecting documentation on system reviews. To make matter worse, consider the countless number of supply-chain disruptions and their lasting effect on the branding.
Artificial Intelligence (A.I.) has already managed to proliferate corporate operations in so many ways. It has proven time and again its efficiency in helping companies repair and resolve critical lapses pertaining to breach of compliance.
Research has established A.I. as an excellent tool in data management. When businesses are global and complicated, it is nearly impossible for a traditional compliance mechanism to stay ahead while tapping into all critical flow of information and put that into purpose.
Three basic forms of information include open access data, data from studies (research and analyses) that might need subscription/permission, data in public domain by protected by copyright or legal clauses. Businesses often struggle in navigating through these categories trying to figure the relevance and irrelevance of data trapped in each of these categories. This is where A.I. is a boon, particularly for compliance, that can filter the music from the noise by programming established by coders.
Let me reaffirm that the introduction of A.I. is not to replace human involvement. Because A.I. is what we programme, it is going to work to our advantage. A.I. for compliance requires collaboration of professionals who administer the system and compliance experts with great grip of laws, regulations, industry fundamentals and in-depth knowledge of managing enterprise risk.
According to the World Economic Forum, applied AI R&D is an innovation ecosystem in plurality where diverse stakeholders collaborate and compete in a planned manner by applying for “funding, procuring new technologies, and top researchers”. This is the key reason why in the last so many years, the adoption rate of Artificial Intelligence has been so high that starting from detecting potential threats of terror to stalling terrorist activity to controlling money laundering, and tracking global financial transactions, it’s application is so pervasive.
As educated individuals redefining how businesses, you are not supposed to be doing the menial tasks of collecting information, data-entering, and form-filling. This is where A.I. is your friend poised to take up even more complex tasks of compliance such as Know-Your-Customer (KYC) compliance. Moreover you are in your business to lead it and earn recognition for the value you add than be questioned for follies rampant in mundane and banal tasks. So, again systems enabled by A.I. help you assess risks involved in getting into business with certain companies and individuals based on data often inaccessible or difficult to process by a human compliance officer.
We can say that we have moved ahead of time which is a great feat achieved. This is concluded from the fact how sophisticated A.I. has become. Leading organizations are asking for more nuance in this technology. Compliance leaders ready to exploit vast resources of data are already asking for features that emerging ones still toying with the idea of adopting A.I. will find difficult to fathom. This is about time you ask questions, find the answers, and welcome the technology that will drive your company’s overall compliance strategy.
At Zycus, we wholly believe in a holistic transformation of procurement technology enabled by A.I. All said, an effective implementation of A.I. is only going to aid competitive growth in productivity and impact business-to-consumer relationships along with the capacity to foretell any impending challenges that can be prevented well in advance.