Revolutionizing Compliance: How ChatGPT Transforms Compliance Professionals Into Compliance Masters

But it’s different now. I started using ChatGPT, a large language model (LLM) that promised to revolutionize my daily routine.

I began my day by asking ChatGPT to summarize the latest regulatory updates in my industry. In just a few moments, I had a concise, easy-to-understand summary of the most recent changes. This allowed me to quickly identify any potential risks and take proactive measures to mitigate them.

Next, I turned to ChatGPT for assistance with document review. The AI was able to analyze and summarize large amounts of legal and financial documents, like contracts and annual reports, presenting the information clearly and concisely. This saved me hours of tedious work, allowing me to focus on more complex tasks.

As the day progressed, I found myself relying on ChatGPT for guidance on specific compliance issues. The AI had been trained on our company’s internal policies and procedures, enabling it to provide real-time advice on how to handle various situations. This not only helped me identify potential risks but also allowed me to make more informed decisions.

In the afternoon, I had a meeting with our legal team to discuss a new contract. I used ChatGPT to draft a preliminary version of the contract, which I then reviewed and refined. The AI’s ability to automate routine tasks like contract drafting saved me valuable time and allowed me to focus on the more strategic aspects of my job.

As the day came to an end, I couldn’t help but feel a sense of accomplishment. ChatGPT had transformed my daily routine, making me more efficient and effective in my role as a compliance officer. While it’s true that ChatGPT can’t replace the human touch and decision-making abilities of a compliance professional, it certainly proved to be a valuable tool in my arsenal.

Of course, it’s important to remember that using ChatGPT comes with its own set of challenges, such as ensuring compliance with data privacy regulations and maintaining the accuracy of the information it provides. However, with the right approach and a good understanding of its limitations, ChatGPT can be a game-changer for compliance professionals, helping us navigate the complex world of regulations with ease and confidence.

I have come to think of LLMs as my team of interns, eager to prove themselves worthy of use cases in real business. My recommendation to others is that we embrace the new technology and use it carefully, where it makes sense, by being aware of its strong and weak points. If you have been persuaded to experiment with it, then continue to learn more below.

Introduction

Large language models (LLMs), such as ChatGPT, will be transforming the compliance landscape by offering new opportunities and challenges for compliance professionals. These models can assist in various tasks, including managing compliance programme, conducting training and awareness programs, and providing valuable insights. However, they also present ethical concerns, legal implications, and potential risks that need to be addressed to ensure responsible and effective use.

Benefits of Using LLMs in Compliance

1. Managing Regulatory Compliance: LLMs can help Governance, Risk, and Compliance professionals manage compliance and minimize the risk of fines and penalties.
2. Conducting Training and Awareness: Compliance officers can use LLMs to provide business colleagues with a more engaging and personalized training experience tailored to their specific needs.
3. Efficiency and Automation: LLMs can process vast amounts of data in real-time, providing valuable insights into behaviour and preferences, including detecting fraud.
4. General benefits of LLMs: all the usual benefits of using LLMs apply as well, such as summarizing, translating, sentiment analysis, research assistance, content creation, image generation, chatbot/virtual assistant…

Challenges, Legal Implications and Ethical Concerns

1. Accuracy and Reliability: Ensuring that LLMs produce accurate and reliable results is a challenge, as they may not always provide the most up-to-date or relevant information on a given topic. LLMs have a tendency to hallucinate, producing false or misleading information that could harm users.
2. Bias and Discrimination: LLMs have the potential to produce biased or discriminatory outputs, because they are trained on a biased and discriminatory input.
3. Misuse and Deception: LLMs can be used to manipulate or deceive others, such as generating false or misleading legal documents.
4. Intellectual Property Infringement: ChatGPT’s potential to infringe on intellectual property rights is a significant legal risk. LLMs were trained on a vast amount of data, including copyrighted works. Furthermore, user input might be used to further train the models, hence it might resurface as a trade secret breach of company data.
5. Data Privacy: The data collection method used to train ChatGPT may be unlawful if data was scraped from a source without the consent of the data owners.

Leveraging LLMs Responsibly

To ensure that LLMs are used ethically and responsibly, compliance professionals can take the following steps:

1. Implement Compliance Measures: Establish clear terms of use of chatGPT and/or other LLMs, put in place compliance measures to ensure that employees use LLMs responsibly.
2. Ensure Data Privacy: Make sure that the data passed to LLM APIs does not include any private or sensitive information.
3. Address Intellectual Property Concerns: Be cautious when using ChatGPT-generated code in products, as it may infringe on intellectual property rights. Similarly, ensure caution of copyright issues, commonly associated with generative AI, such as with images further used on websites and materials.
4. Monitor and Control: Regularly monitor and control the use of LLMs to prevent misuse and ensure adherence to ethical guidelines. Ensure that non-compliant use is identified and addressed.

Conclusion

Large language models, such as ChatGPT, are transforming the compliance landscape by offering new opportunities for professionals with a growth mindset. We have only barely scrapped the full potential of current LLMs for compliance professionals, and with the current rate of innovation and development, we can look forward to still bigger improvements well within the next year.

Compliance professionals can leverage these models to improve their work and be more efficient, but they must also address the ethical concerns, legal implications, and potential risks associated with their use. By implementing compliance measures, monitoring and controlling LLM usage and ensuring data security, compliance professionals can harness the power of LLMs responsibly and effectively.

Domen Bizjak with assistance of a LLM