Enabling Better Compliance Reporting with AI

Overview

The Compliance & Regulatory Reporting AI Sherpa was developed for a leading European Bank, utilizing the Zen platform to address the evolving and complex regulatory landscape. This AI assistant is designed to provide accurate responses to queries regarding obligations under the PRA framework and BOE guidelines, significantly enhancing the productivity of the bank’s finance and compliance reporting teams.

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The Challenge

The bank faced a significant challenge in managing the intricate and ever-changing regulatory landscape, particularly with respect to compliance and reporting requirements under the PRA framework and BOE guidelines. The volume of information and the complexity of regulations made it difficult for the finance and compliance teams to stay updated and ensure accurate reporting. The need for a reliable and efficient solution to navigate this regulatory maze became evident as manual processes were time-consuming and prone to errors.

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The Approach

To address this challenge, the bank partnered with a solution provider to develop a specialized AI assistant using the Zen platform. The focus was on creating a Compliance &; Regulatory Reporting AISherpa that could ingest and analyze over 2,500 links and 1,500 documents to construct a comprehensive knowledge graph. This graph would serve as the foundation for the AI assistant, enabling it to provide precise answers to the bank’s regulatory queries.

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Key steps in the approach included:

Knowledge Graph Creation:

Building a specialized knowledge graph from a vast amount of regulatory documents and links.

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Assistant Agent Design:

Developing a purpose-built AI agent tailored to the bank’s specific regulatory and compliance needs.

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Continuous Learning:

Ensuring the AI assistant could adapt to evolving regulations, providing up-to-date and accurate information.

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The Solution

The result was the Compliance & Regulatory Reporting AI Sherpa, an AI-driven assistant capable of accurately answering queries related to the PRA framework and BOE guidelines. The solution was designed to integrate seamlessly into the bank’s existing workflow, providing real-time support to the finance and compliance teams. By leveraging the comprehensive knowledge graph, the AI assistant could navigate the complex regulatory landscape, reducing the burden on human teams and minimizing the risk of errors.

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The Impact

The implementation of the AI Sherpa led to a significant increase in productivity, with the finance and compliance reporting teams experiencing an estimated 40% improvement in efficiency. The AI assistant not only streamlined the reporting process but also ensured greater accuracy in compliance.

Additionally, the success of the project has opened up future opportunities for further collaboration, including the potential for AI-enabled report generation automation and the incorporation of Shariat banking norms for geo-specific banking obligations.

Boosting Compliance Team Productivity by ~40% Using Agentic AI