Artificial Intelligence will be transforming regulatory compliance for energy companies, as Machine Learning increasingly will be used for regulatory compliance to make sense of big, complex data. The use of AI can help your company improve the speed and efficiency to achieve compliance, making it much more robust, at lower risk and much cheaper than if done manually.
In order to achieve compliance, many firms have to interpret the hundreds or sometimes thousands of pages of regulations such as REMIT, MAR and MiFID 2 themselves or hire a consulting or law firm to do that for them. Today, AI can be used to interpret regulations, to comprehend what needs to be done from a technology perspective, and then to codify the necessary rules. Those rules can then be automated into the relevant reporting and risk systems to make sure that the firm is not only staying compliant but also better managing its risk.
Natural Language Understanding (NLU), a form of AI, can automatically translate the written regulations as they come out into usable code and will thus bring down the cost, the effort and the timescale of interpreting and implementing new and updated regulations.
Although there are various approaches to ensuring regulatory compliance, the whole process can only be fully optimized if AI will be included in the exercise.