Introduction

The generative AI (GenAI)-powered EY Regulatory and Compliance Manager solution is an EY solution that is part of an existing EY application – EY Regulatory and Compliance Manager (EY RCM), a global,  customizable regulatory inventory that’s enriched, mapped and maintained by a combination of leading -edge technology and the global EY network of regulatory professionals .

In an era where regulatory compliance is both rapidly evolving and complex, organizations need new and innovative ways of navigating the complex regulatory environment to find answers to questions such as which regulations pertain to them, whether they are in adherence, and how these rules affect their business operations.

The EY Regulatory Compliance Manager (EY RCM) solution, with a rich library of over 30,000 regulatory documents, allows clients to digitally manage compliance within a shifting regulatory landscape, identify changes in regulation requiring new compliance, simplify steps required to get compliant, and monitor ongoing compliance. The key differentiation is the enrichment of each of these regulatory documents with EY interpretation, summaries and obligations, supported by the wealth of knowledge of EY professionals.

However, with over 5,000 regulatory documents added each year, the compliance burden is ever increasing in time and cost. There was an opportunity to automate and enhance current processes involving tasks such as analysing regulations, identifying changes in regulation requiring new compliance, steps required to get compliant and monitoring ongoing compliance. It is in this context that the solution was enhanced with GenAI-powered capabilities which stands out as a beacon of innovation, harnessing the power of generative AI to revolutionize the way compliance is managed.

The GenAI-powered EY Regulatory Compliance Manager exemplifies EY commitment to merging advanced technology with the deep experience of its regulatory professionals.

The EY solution, which is an AI assistant, seamlessly integrated with the existing EY RCM application, automates critical tasks such as summarizing regulations, linking documents, and generating compliance obligations. The transformation of these manual processes into automated functions not only enhances efficiency but also helps ensure accuracy and agility in the fast-changing regulatory landscape. EY teams’ pioneering approach provides clients with faster, clearer insights into compliance mandates, granting them a competitive edge in a world where compliance is not just necessary, but paramount.

Objectives

The GenAI-powered EY Regulatory and Compliance Manager solution is designed to accomplish the following objectives:

  • Compliance agility: Help EY clients to swiftly adapt to new regulations and maintain a competitive advantage through proactive compliance management.
  • Increase operational efficiency: To significantly reduce the time and resources required for regulatory compliance management by automating routine tasks, allowing EY professionals and clients to focus on more strategic compliance activities.
  • Enhance client compliance capabilities: To provide EY practitioners with advanced tools that help them to navigate the complex regulatory environment more effectively, helping ensure they can achieve and maintain compliance with greater ease and precision.
  • Drive innovation in compliance services: To position the EY organization as a leader in regulatory compliance services by leveraging AI technology to offer innovative solutions that differentiate EY services in the marketplace.

Solution details 

As mentioned above, the GenAI-powered EY solution automates critical tasks which were performed manually by EY professionals. We have highlighted two such critical tasks below which were performed manually by EY teams in the RCM solution and are now automated with the help of GenAI-powered EY solution:

  1. Summary and document link generation: The EY RCM tool requires users to summarize extensive regulatory documents and link them to related regulations for further analysis and interpretation. With the introduction of the GenAI-powered EY solution, the summary and document links are generated in a completely automated fashion along with a human-in-the-loop element, by an EY professional, to help ensure proper review and governance of the output before it is finalized in the EY RCM solution.

 

  1. Obligation generation: EY professionals traditionally manually identify and translate mandate clauses from regulatory documents into standardized obligations for easier client comprehension and action. The GenAI-powered EY solution automates obligation generation from regulatory documents, with a human-in-the-loop review for accuracy before confirmation in the RCM tool.

Enriching the EY interpretation of regulations using GenAI:

The EY Regulatory Compliance Manager tool has a library of over 30,000 regulatory documents which is continually being updated as new regulatory content is drafted and published. Prior to the introduction of the GenAI capabilities in EY RCM, only a limited number of publications would be enriched dependent on the client’s interest, which required manual input. 

However, with the introduction of the GenAI-powered EY solution integrated with the RCM tool, there have been numerous benefits:

  • Reduced cost: The introduction of GenAI-powered capabilities significantly reduces the cost of manually enriching regulatory documents with summaries and obligations, both for existing backlogs and new documents annually.
  • Improved productivity: Using the GenAI-powered capabilities, the EY teams have saved labor hours on 15,000 regulatory documents and 90,000 firm obligations, leading to improved productivity.
  • Improved application SLAs and quality: The GenAI-powered solution has reduced EY RCM’s SLA on regulation updates and reduced draft quality revisions.
  • Faster go-to-market for clients: With the improved productivity, better availability of up-to-date regulatory documents with enhanced interpretations and consistent quality due to the human intervention, EY teams are able to provide faster and better services to clients who are ultimately able to go to market quickly.

Market impacts

The GenAI-powered EY solution is set to revolutionize the regulatory compliance landscape, with the following market factors being conducive to the same.

The integration of Generative AI-powered capabilities into the EY Regulatory Compliance Manager tool not only streamlines compliance processes but also ensures that organizations stay ahead in a rapidly evolving regulatory environment. By reducing the manual workload and reducing the risk of non-compliance, this innovative solution offers a competitive edge to EY practitioners and clients alike, helping them to focus on strategic initiatives while maintaining robust compliance standards.

Social impacts

The GenAI-powered EY solution not only benefits businesses but also has far-reaching implications for the wider society Outlined below are the key social impact of EY solution along with the corresponding achieved UN Sustainable Development Goals:

  • Enhanced Compliance Accuracy: The EY solution supports UN SDG 16 by enabling more effective and accountable financial institutions. It reduces human error in compliance through automation, ensuring regulations that protect all stakeholders are followed, leading to a safer society.
  • Democratizing Regulatory Expertise: Aligning with UN SDGs 8 and 10, the EY solution levels the playing field for SMEs by providing access to advanced compliance management, fostering an inclusive economy where businesses of all sizes can thrive.
  • Promoting Corporate Responsibility: Contributing to UN SDG 12, the EY solution’s process efficiencies allow organizations to focus on social impact initiatives like corporate social responsibility and environmental sustainability, promoting a culture of responsibility beyond compliance.
  • Human-in-the-Loop Collaboration: In line with UN SDG 9, the EY solution encourages human-AI collaboration, ensuring human oversight in an AI-driven age, enhancing the compliance industry’s human experience, and augmenting workforce capabilities.

About EY:

EY exists to build a better working world, helping to create long-term value for clients, people and society and build trust in the capital markets.

Enabled by data and technology, diverse EY teams in over 150 countries provide trust through assurance and help clients grow, transform and operate.

Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.

EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. Information about how EY collects and uses personal data and a description of the rights individuals have under data protection legislation are available via ey.com/privacy. EYG member firms do not practice law where prohibited by local laws. For more information about our organization, please visit ey.com.