AI Automation in Compliance: Elevating the Regulatory Affairs Function

AI Automation in Compliance: Elevating the Regulatory Affairs Function

Mar 28, 2025

Mar 28, 2025

Automation is increasingly prevalent across industries today, particularly with the rapid advancement of AI tools. The steady drumbeat of solicitations from compliance software vendors in my LinkedIn messages suggest this shift is particularly acute in the compliance field. Another indicator is the noticeable shift in hiring requirements, or how recruiters are now describing the necessary skills for the compliance position.

When I recently undertook my own job search, I noticed job postings that once emphasized "deep understanding of [insert industry name here] regulations" or "collaborative skills for documenting compliant processes" are now more frequently requesting candidates who demonstrate proficiency with specific AI compliance platforms. In other words, organizations are seeking individuals who can effectively manage the software that performs the tasks previously required by multiple team members. Much of this is not new - there have long been regulatory tracking, licensing management, compliance training and audit softwares, among others that serve the industry. But what is new is the primacy of the roles having to do with only managing those programs.

While this trend naturally raises concerns, I see a valuable opportunity. It allows compliance professionals to redirect their focus toward areas where AI cannot yet compete—areas that provide substantial business value. Specifically, I'm referring to regulatory affairs. In larger organizations, it's frequently positioned as a distinct subspecialty, primarily involving serving as the organization's primary liaison with regulatory authorities, but I believe its full potential is seldom unlocked in many organizations.

The Strategic Value of the Human Element in Regulatory Affairs

As AI assumes more routine compliance tasks, the human aspects of regulatory affairs become increasingly valuable.

Relationship Building and Influence

Developing effective relationships with regulators requires interpersonal skills, credibility, and trust—elements that AI cannot yet easily replicate. Throughout my experience overseeing compliance programs across jurisdictions, I've observed how positive regulatory relationships can transform potentially adversarial interactions into collaborative problem-solving sessions.

These connections provide benefits beyond basic compliance. Organizations with established regulatory relationships gain valuable intelligence about upcoming changes before formal announcements. More significantly, they can participate in shaping that regulatory environment. In my work with the cannabis industry, for example, I've contributed to regulatory discussions where our practical input directly influenced testing requirements, resulting in regulations that protected consumers while avoiding unnecessarily burdensome processes.

Navigating Ambiguity and Interpreting Intent

AI excels with clearly defined rules but struggles with the ambiguity common in regulations—particularly in emerging industries with evolving regulatory frameworks.

When one of a client’s cannabis retail locations faced potential citations during an unannounced inspection, my understanding of regulatory intent enabled me to demonstrate how alternative approaches achieved the same safety objectives. This strategic interpretation converted what could have been penalties into a constructive dialogue about improvement.

This human judgment becomes especially crucial during crisis management. Following a data security incident earlier in my career, our established relationship with regulators facilitated a collaborative response rather than immediate penalties. This cooperative resolution protected both consumers and our organization's reputation.

From Technical Requirements to Business Enablement

As AI manages routine compliance tasks, human compliance professionals can evolve from documentation and monitoring roles to strategic advisory positions. This transition transforms compliance from a cost center to a business enabler.

While helping a former client introduce a new product line that didn't clearly align with existing regulatory categories, I was able to proactively engage with regulators to establish applicable requirements. Rather than simply identifying barriers, we developed solutions that satisfied regulatory objectives while enabling innovation.

This strategic advisory function represents compliance's future—professionals who understand both regulatory requirements and business objectives, effectively bridging regulatory expectations and organizational strategy. While AI can monitor and document effectively, only human professionals can successfully navigate these nuanced situations.

Conclusion: Regulatory Affairs as Strategic Partner

The automation of routine compliance tasks through AI represents an opportunity rather than a threat to the compliance profession. By embracing this transformation, compliance professionals can concentrate on the high-value, strategic aspects of regulatory affairs that require human judgment.

The most effective organizations will establish partnerships between AI-powered compliance systems and human regulatory affairs expertise, combining automation's efficiency with the relationship-building and influence that only human professionals can provide.

As compliance professionals, we should view AI not as our replacement but as our amplifier—handling routine tasks while enabling us to focus on strategic regulatory relationships that deliver competitive advantages. In this evolving landscape, the compliance professional who can bridge technical requirements and business strategy through effective regulatory affairs will remain an invaluable organizational asset, regardless of how advanced AI tools become.

About the Author

Matt Kalmick, J.D.

I'm a strategic and collaborative leader passionate about building compliance programs that reduce risk and remove regulatory barriers.

From financial services to FinTech and SaaS to cannabis, I have been managing risk and compliance in highly-regulated environments for the last 15 years.

I received my Juris Doctor from Boston College Law School, my Bachelor’s Degree from Drew University, and my Certified International Privacy Professional (CIPP) certification from the International Association of Privacy Professionals (IAPP).

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