CW Survey: Compliance is Adopting AI Tools, but Governance and Controls Lag
According to a recent survey conducted by Compliance Week and konaAI, more than 83 percent of respondents reported using artificial intelligence (AI), yet only about 25 percent indicated that their organizations have implemented a strong governance framework.
Survey Overview
The survey encompassed 193 compliance, ethics, risk, and audit leaders, revealing that 90 percent of organizations utilizing AI have deployed generative AI tools, such as ChatGPT and Claude. The findings also highlighted that 52 percent are using agentic AI for task execution, 51 percent are employing large language models, and 42 percent are utilizing predictive analytics or machine learning tools.
The Need for Governance
Vincent Walden, CEO of konaAI, emphasized that the lack of governance in AI adoption is likely due to its recent emergence, stating, “It’s relatively new, just two-and-a-half years old.” Compliance departments are attracted to AI for its ability to automate tedious processes, such as due diligence.
Efficiency Gains
Survey respondents, particularly those in the financial services sector, noted the efficiencies gained through AI in several key compliance areas. Nearly 40 percent reported using AI for risk assessment and monitoring, with 61 percent planning to expand AI usage in this area soon.
The benefits of AI in compliance are significant: approximately 84 percent of leaders stated that AI has improved departmental efficiency, 54 percent reported enhanced analytics and monitoring, 49 percent noted faster decision-making, and 41 percent mentioned cost savings.
Agentic AI: A Game Changer
Agentic AI is positioned as a transformative tool in compliance. This type of AI can automate tasks and make decisions, making it suitable for repetitive business processes involving multiple stakeholders. Walden provided an example of an AI agent named Eva, who specializes in DOJ investigations. Eva can quickly assess situations based on prior warnings received about employees involved in potential misconduct.
External Pressures and Future Use
The changing economic and political landscape is also influencing AI adoption. Walden stated, “As political agendas change, new priorities emerge and compliance changes with it.” The survey indicated that nearly 80 percent of organizations plan to utilize AI for tariffs, compared to only 20 percent currently doing so. Additionally, about one-third are using AI for regulatory reporting, with 67 percent expecting to integrate AI in regulatory areas soon.
Challenges in AI Adoption
Despite the interest in AI, many compliance teams are still hesitant. Approximately 30 percent are not using AI for ethics and compliance tasks, and among those who are, most have only recently adopted it. Nearly 27 percent have been using AI for less than six months.
Challenges cited by leaders include data quality issues (66 percent), training difficulties (47 percent), data privacy concerns (46 percent), and unmanaged AI use by employees (42 percent). A significant barrier to effective AI utilization is the lack of expertise, as reported by 54 percent of leaders.
Budget Considerations
Many compliance teams are allocating a considerable portion of their technology budgets to AI projects. About 41 percent plan to spend up to 25 percent of their budgets on AI, while 19 percent will allocate between 25 to 50 percent. Conversely, some teams are planning to scale back their AI use in training, data analysis, and communications.
Conclusion
While AI presents numerous opportunities for enhancing compliance operations, it is clear that not all tasks are suitable for AI implementation. Tasks requiring significant trust, such as training and communications, may benefit more from personal interaction than from AI solutions.
As organizations continue to navigate the complexities of AI adoption, the call for effective governance and strategic implementation remains vital.
