Keeping pace with regulatory change has become an immense challenge for financial institutions, with more than 1,300 agencies overseeing the sector worldwide.
In 2024 alone, U.S. regulators imposed $4.3bn in fines, with $1.06bn of that hitting U.S.-based institutions. The message is clear: manual compliance processes can no longer keep up with the speed, volume, and complexity of modern regulation, claims AscentAI.
The rapid growth of new and updated regulatory information creates a constant deluge of data that compliance teams must review to determine its impact. Relying on manual review not only consumes valuable time and resources but also increases the likelihood of human error. Even small oversights can lead to massive financial penalties and reputational damage. For global organisations, keeping compliance obligations current across systems, policies, and controls is becoming an unsustainable task.
Disconnected systems often exacerbate the issue. Many firms find that their compliance automation tools and governance, risk, and compliance (GRC) platforms operate as isolated systems. Transferring information between them can resemble a game of telephone, with updates at risk of being lost or distorted as they move from regulatory monitoring to policy implementation. This lack of integration leaves compliance teams without a unified, real-time view of risk exposure.
Time is another critical factor. When regulatory updates take weeks to process manually, institutions are left vulnerable for the entire duration. A single missed or misinterpreted obligation can cascade through the compliance chain, leading to errors in corporate controls and reporting. Without synchronised systems that connect regulatory data to operational processes, achieving centralised command and control of compliance becomes nearly impossible.
Automation offers a clear path forward. AI-driven solutions can manage both upstream compliance—staying current with regulatory updates—and downstream compliance, which governs daily operations. Unlike manual methods, which depend on growing headcounts and rising costs, AI solutions scale seamlessly to accommodate new regulators or business lines.
Ascent’s technology exemplifies this integrated approach. The company’s AscentAI platform automates the full regulatory lifecycle, from monitoring new developments to operationalising obligations within a firm’s GRC system. AscentHorizon keeps users informed of regulatory evolution—covering news, enforcement actions, and guidance—while AscentFocus automates change management processes, ensuring seamless integration between regulatory data and compliance controls.
For organisations seeking enterprise-grade compliance, an AI-enabled tech stack with integrated regulatory change management and GRC connectivity is becoming the gold standard. This approach enables companies to automatically detect relevant regulatory changes, filter out noise, determine specific obligations, and instantly feed them into the GRC system.
The benefits of this automation are tangible. Firms can monitor and operationalise regulatory data more efficiently, gain full visibility into their compliance lifecycle, and redeploy costly human resources to higher-value strategic work. Moreover, integrating upstream and downstream compliance functions enhances accuracy and responsiveness, ensuring organisations maintain full control of their regulatory posture in real time.
As automation and integration continue to reshape the compliance landscape, firms embracing AI-driven systems will not only mitigate risk but also position themselves for sustainable growth in an increasingly complex regulatory world.
Copyright © 2025 RegTech Analyst
Copyright © 2018 RegTech Analyst
