Compliance automation: Improve processes while reducing risk

6-minute read

Quick summary: Compliance automation can streamline processes, reduce risk, and improve accuracy—when it’s implemented with a strategic, data-centric approach.

Regulatory frameworks are becoming more complex, and many organizations are struggling to keep up with the pace of change. Given the near-constant flow of new regulations and updates, coupled with evolving business processes such as integrating AI, tackling new compliance challenges is becoming a daily fact of business life.

Yet, despite the high stakes, only 8 percent of risk and compliance professionals feel “extremely confident” in their organizations’ ability to manage these concerns. And an astounding 28 percent of organizations still rely on paper-based methods to track compliance data.

Compliance automation enables businesses to manage their regulatory obligations efficiently while reducing costs and lowering the risk of human error. In a recent Thomson Reuters survey, 65 percent of respondents agreed that automating manual processes would help reduce the cost and complexity of their compliance operations.

However, simply automating tasks is not enough. Implementing effective compliance automation requires a strategic approach that aligns data, processes, and technology to achieve the desired results.

Ensure a solid data foundation

The success of compliance automation hinges on having a strong data foundation. To ensure smooth processes and reliable outcomes, all data must be clean, current, properly formatted, and secure. Outdated or inaccurate data can lead to compliance errors and increase the risk of violations.

Data governance supports this foundation by ensuring that data remains well-managed, accessible, and reliable across the organization. If the organization doesn’t yet have a full-fledged governance framework in place, then these gaps should be considered when exploring compliance automation.

Select the right processes to automate

As not all compliance processes are equally suited for automation, it’s important to be strategic in choosing which ones to automate. Some tasks may see significant improvements in efficiency and accuracy, while others may not benefit as much—or could even introduce unnecessary complexity.

When evaluating which processes to automate, consider factors such as cost, value, and risk. Start by identifying tasks that are the most time-consuming, repetitive, and prone to human error. These processes often offer the greatest potential ROI when automated.

However, keep in mind that certain tasks may be better left manual, especially if they require human judgment, decision-making, or unique contextual insights. Striking the right balance between automation and manual oversight will ensure that compliance programs remain flexible and effective.

Choose the right tools

Selecting the right tools for compliance automation is as important as deciding which processes to automate. Rather than jumping straight to high-cost, advanced technologies, it can be more effective to start with low-code or low-tech options. These solutions can offer the flexibility and scalability needed to address your immediate needs without requiring a significant upfront investment.

In the right applications, low-code platforms allow teams to build and customize automation solutions with minimal programming expertise, enabling faster implementation and easier maintenance. These tools can be ideal for automating routine tasks or creating simple workflows that streamline compliance efforts. In some cases, a basic automation tool may be enough to deliver the desired improvements in efficiency and accuracy, without the need for complex, expensive technology. (See the case study “Custom Power App for compliance data intake” below.)

Develop a roadmap for strategic automation

Rather than automating all processes at once, organizations benefit from a phased approach that minimizes disruptions and ensures smooth adoption.

1. Start with a pilot program

Begin by testing the automation strategy on a smaller scale. A pilot phase allows the organization to assess performance, identify challenges, and make adjustments before investing in a full rollout.

2. Proceed with phased deployment

Gradually roll out automation to different parts of the organization. This approach enables teams to monitor progress while ensuring they can adapt to the new processes smoothly.

3. Gather feedback and refine processes

Continuous feedback from users is essential for identifying opportunities for improvement. Adjust automation processes as needed to ensure they continue to align with the needs of users and of the business.

4. Gradually scale deployment

Once processes have been refined and deployment is successful, scale the automation efforts. Incremental scaling allows for smooth adoption and integration into existing workflows.

Measure the effectiveness of compliance automation

By tracking key performance indicators (KPIs), organizations can gain valuable insights into the effectiveness of their automated compliance processes and identify areas for improvement. Essential KPIs to monitor include:

Time savings

One of the primary benefits of compliance automation is the reduction of time spent on manual tasks. Tracking time savings will demonstrate how efficiently automated systems are streamlining processes.

Cost savings

Compliance automation should lower operational costs by reducing manual labor and improving process efficiency. Monitoring cost savings helps quantify the ROI.

Accuracy rates

Automation improves accuracy by minimizing human error, especially in repetitive tasks. A higher accuracy rate indicates that the compliance automation system is functioning effectively and reducing the risk of errors that could lead to violations.

Violation rates

A successful compliance automation program should reduce the number of compliance violations by ensuring regulations are consistently met in a timely manner. Reductions in violation rates reflect how well automated processes are maintaining compliance standards.

Implementing feedback loops is also vital for supporting continuous improvement. Regularly collecting feedback from users and reviewing system performance ensures that compliance automation processes can be refined and optimized over time, adapting to changing regulations and business needs.

Avoid common challenges in compliance automation

While compliance automation offers significant benefits, it’s important to recognize and address common challenges that can arise during implementation. Ignoring these pitfalls can lead to inefficiencies, poor adoption, or even new compliance risks.

Over-automating processes

Automating processes that require human judgment or nuanced decision-making can result in errors and additional complexity. Compliance automation should focus on repetitive, data-driven tasks where automation can reduce human error, while leaving complex assessments to the human experts.

Lack of human oversight

Automated systems require regular monitoring to ensure they continue to operate correctly and align with evolving regulations. Maintaining human involvement ensures that the automation is functioning as intended and that compliance obligations are met consistently.

Underestimating change management

Implementing compliance automation involves more than just technology; it requires employee and stakeholder buy-in. Without adequate preparation and training, teams may resist or fail to adopt automated processes. A strong change management strategy ensures that employees understand how to use the new automation tools and are fully equipped to leverage them.

Overlooking scalability

Many organizations focus on solving immediate compliance issues but overlook long-term scalability. As regulatory demands grow, compliance automation tools and processes need to scale alongside them. Selecting scalable automation solutions at the outset can save costs and effort in the future, allowing organizations to avoid re-implementation or system redesigns.

Case studies: Automating compliance in a global gaming company

In two separate initiatives, a global gaming company partnered with Logic20/20 to streamline compliance processes and improve efficiency using low-code automation tools and AI-driven solutions.

Custom Power App for compliance data intake

The client’s compliance team sought to move away from manual, hard-copy intake forms and create a centralized, digital solution for data collection. We developed a low-code, highly customizable Power App to serve as the new intake form for all required compliance data. The solution standardizes data collection, facilitating automated reporting capabilities across different regulatory needs and tasks and enabling easier identification of higher-risk scenarios.

Key features include embedded self-help resources to assist users in completing the forms accurately, reducing the need for constant support from the compliance team. By providing a single source of truth for both the compliance team and their stakeholders, the Power App simplifies data collection, improves accuracy, and can be maintained without the need for engineering resources.

AI-powered chatbot for compliance support

The client also faced challenges in disseminating compliance-related information to its product and engineering teams, which created bottlenecks for the compliance department. To address this issue, we developed an AI chatbot using a retrieval-augmented generation (RAG) model, which enables users to quickly find answers to compliance questions. The chatbot integrates with curated knowledge articles and compliance documentation, ensuring that employees have quick access to reliable, up-to-date information.

The AI-driven solution reduces the time the compliance team spends answering routine questions, allowing them to focus on more complex issues. Additionally, it improves compliance readiness by enabling teams to self-serve and prepare more thoroughly for compliance reviews.

The path to smarter compliance

Successful compliance automation depends on a strategic approach that involves selecting the right processes, choosing suitable tools, and carefully measuring results. By establishing a solid data foundation and following a phased implementation plan, organizations can significantly reduce risk, increase efficiency, and improve compliance accuracy. Using solutions ranging from low-code platforms to AI-powered chatbots, businesses across industries are transforming compliance into a more scalable and manageable function.