How AI is Reshaping Governance and Compliance in 2025
Governance, risk and compliance (GRC) has transformed from a back-office operation into a critical boardroom priority for firms in the UK. The implementation of the Financial Conduct Authority’s (FCA) Consumer Duty, combined with the Senior Managers & Certification Regime (SMCR), has amplified the urgency for GRC teams to adapt to evolving regulatory landscapes.
As the operational resilience requirements loom for March 2025, businesses are under increasing pressure to not only demonstrate compliance but also to ensure that their compliance measures are proactive, transparent, and focused on protecting customers. The shift in perspective redefines GRC from merely a defensive approach to one that fosters resilience, agility, and sustainable growth.
The Evolution of GRC
Historically, GRC was viewed as a cost burden, characterized by fragmented registers and sluggish audit processes. However, the current regulatory environment necessitates a paradigm shift. Executives are now seeking innovation that aligns with their goals of resilience. Regulators emphasize the importance of outcomes, insisting that boards must actively demonstrate that risks are identified, assessed, and mitigated in real time, especially concerning vulnerable customers.
This transformation has repositioned GRC as a source of foresight, evolving compliance from a static checklist to a competitive advantage. The implications of failing to meet regulatory standards are significant, as UK banks and financial institutions have faced considerable penalties for inadequacies in areas such as anti-money laundering (AML) and consumer protection.
The Role of Agentic AI
Agentic AI is emerging as a game-changer within this context. Unlike traditional automation, these advanced systems can perceive, reason, and act autonomously across various workflows. They are capable of integrating data from multiple sources, triaging risks, and generating evidence trails without the need for ongoing manual input.
For UK firms, the advantages of agentic AI are clear: it offers embedded explainability that meets the SMCR’s requirement for “reasonable steps,” provides continuous monitoring for near-real-time oversight, and identifies risks affecting vulnerable customers, thus directly supporting Consumer Duty outcomes.
Case Study: IntellectAI’s Purple Fabric
The Purple Fabric platform from IntellectAI exemplifies how agentic AI can transform GRC practices. Marketed as an enterprise-grade agentic AI system, Purple Fabric integrates multi-agent digital experts directly into business processes.
For instance, a wealth management firm faced with over 10,000 complaint cases was able to reduce investigation times from weeks to mere minutes using Purple Fabric, thereby restoring confidence among regulators and enhancing service level agreement (SLA) compliance. Another example highlights how organizations utilized its agents to automate compliance mapping, which led to a 70% reduction in manual review times and a 60% improvement in audit readiness.
Furthermore, the platform’s Client 360 capability aids in aligning with Consumer Duty by analyzing both structured and unstructured data to flag potential risks, ultimately helping firms increase customer trust and retention.
Conclusion
Purple Fabric’s growing appeal in the UK is attributed to its alignment with FCA priorities, scalable design, and focus on measurable outcomes. By enabling firms to cut costs by up to 60%, enhance productivity by tenfold, and resolve complaints more efficiently, it repositions GRC as not merely a reactive function but as a critical enabler of growth.
