From statutory requirements such as health and safety to environmental laws and data protection, compliance is an essential component of a strong business strategy and the key to avoiding legal penalties and maintaining your reputation.
However, in a recent UK Government survey, less than half of large businesses operating in global markets found the administrative burden of business compliance reasonable. In fact, 33% actively claimed that it was unreasonable.
Maintaining business compliance doesn’t have to be this tricky. As several industries welcome automated tools and AI-powered tech, could compliance be the next area of the business world set for transformation?
As regulations evolve, so does the workload for business leaders. Businesses relying on paper-based recordkeeping and filing, or manual spreadsheet tracking, could struggle to produce audit-ready documentation on demand, thereby increasing their chances of receiving a penalty.
Manual compliance strategies simply don’t cut it anymore. This is where automation comes in. With the ability to automate data entry, approval workflows, and even tick-box exercises, businesses not only save time but also eliminate inefficiencies caused by human error.
Take the A14 Cambridge to Huntingdon Improvement Scheme by IDT as an example. While it was one of the most significant road construction projects in the UK, it still faced a £10 million fine for failing to meet material requisition requirements.
To combat this, the company automated their material requisition process using an all-in-one platform to streamline and manage company compliance.
From digitalising paperwork to automatically auditing trails, IDT completed its compliance process five times faster, according to experts at FlowForma.
If you’re a global business, you’ll be familiar with an ever-evolving web of international laws. From GDPR to HIPAA, it can be challenging to stay afloat. Automation tools centralise the compliance process, allowing you to tackle countless country-based regulations from one integrated platform.
This ensures that you have a clear view of your compliance status across all jurisdictions in real-time.
Automation tools and integrated digital HR systems reduce the administrative burden of compliance reporting. With the ability to handle tasks like data collection, policy tracking and evidence gathering, dedicated compliance tools can generate accurate reports in real-time.
If you rely on a manual compliance process, you open your business up to human error. When it comes to meeting legal requirements, there is no room for error, which will most likely lead to significant fines and penalties.
Automating components such as data input helps minimise these risks as AI performs each task with precision and a consistent set of rules. Better still, many automated compliance tools can also be used to flag previous human errors, making it easier to catch discrepancies before it’s too late.
It’s time to swap periodic, manual compliance reviews for continuous monitoring. Automation enables real-time tracking and visibility for identifying potential issues. This allows the team to react proactively before a breach turns into a penalty.
Automated tools can analyse large datasets in seconds, effortlessly tracking patterns, cross-referencing transactions, and monitoring global watchlists. By learning from data, automated compliance tools can assess potential risks more efficiently than business leaders.
This enhances security, mitigates risks, and helps your organisation prevent fraud.
As a business grows, staying on top of changing regulations is crucial. Automated solutions can help your company scale and adapt to regulatory shifts without the need for more manual labour.
This ensures that your compliance management strategy remains sustainable and cost-effective in the long term.
Automation is the key to unlocking a more sustainable compliance strategy. With the ability to reduce human error, tighten risk management and improve real-time insights, your compliance reporting has never been so easy.
Automation is a growing trend in the business world. With 89% of compliance professionals now using AI as a “force for good”, experts predict that fully automated compliance workflows are just around the corner.
With the ability to reduce the constraints of human employees, AI-powered compliance tools could be the key to a more sustainable, penalty-free future for global-facing companies.