Enhancing E&C Programs with AI: Expert Insights and Strategies

The integration of artificial intelligence (AI) into ethics and compliance (E&C) programs is proving to be both a challenge and a transformative opportunity for organizations. While AI promises efficiency and enhanced risk management, E&C teams are grappling with the complexities of its implementation.

The Expanding Role of AI in E&C

For years, E&C professionals have sought more efficient ways to manage their increasing responsibilities, particularly as regulatory expectations continue to evolve. However, without a proportional increase in resources, many teams have felt stretched thin. AI presents a strategic shift in how compliance teams operate, moving beyond mere speculation to meaningful implementation. The challenge lies in how best to adopt AI while maintaining regulatory and ethical integrity.

Parth Chanda, Case IQ’s EVP of Risk and Compliance Transformation, says AI is “really helping [E&C professionals] do things like finding outliers and complex data sets and accelerating investigations. AI not just being helpful in those cases; it’s almost becoming essential.”

Challenges in AI Adoption

Despite AI’s potential, its adoption has led to increased workloads for compliance officers. These professionals are often responsible for approving AI-related projects or participating in governance committees that evaluate such proposals. Consequently, they must navigate concerns such as responsible AI use, algorithmic bias, data confidentiality, and reputational risks. These complexities have, at times, overshadowed AI’s potential benefits.

“When you look at how AI is landing in the ethics and compliance space . . . it’s complicated,” Parth admits. “The impact today has mostly meant more work for compliance officers—more work and more worry.”

However, the landscape is shifting. More E&C teams are beginning to experiment with AI, uncovering use cases that enhance operational efficiency and improve risk management. A growing number of organizations are moving beyond curiosity, actively integrating AI tools into their compliance functions with tangible results.

Key Use Cases for AI in E&C

Two of the most promising applications of AI in E&C are in monitoring and investigations. “Monitoring and investigations are some of the fastest areas where we’re seeing uptake, where we’re seeing compliance teams get real value from AI right now—quick wins,” Parth explains.

1. AI-Powered Monitoring

Monitoring financial risk data—such as enterprise resource planning (ERP) transactions, vendor data, and financial records—has been significantly improved by AI. Techniques such as clustering algorithms and anomaly detection allow compliance teams to identify outliers in financial transactions with a level of sophistication that surpasses traditional statistical models.

However, AI models require strong foundational data analytics. Organizations must establish key risk indicators (KRIs) and rule-based analytics before fully leveraging AI’s machine learning capabilities. AI can then refine its predictions based on patterns observed in flagged transactions, leading to more accurate risk assessments over time.

2. AI in Investigations

Investigations, which are often text-heavy and time-consuming, stand to benefit significantly from AI. Large language models (LLMs) can automate substantial portions of the investigative process, from intake to case resolution. Key applications include:

• Automated intake and translation: AI-powered voice-to-text tools enable whistleblowers to report issues in multiple languages, improving the quality and volume of reports received.
• Policy violation detection: AI can assess reports against company policies, categorize cases, and route them to the appropriate departments.
• Efficient case summaries: AI-generated reports streamline the investigative process, reducing the time needed for documentation and analysis.

AI can be applied to investigation data analytics, too, according to Parth. “Imagine getting a hotline report related to vendor ABC, and then being able to, in seconds, pull up all of their transactions, spot risky activity, explore that data, and really scope that investigation—without needing to ping IT or Finance.”

These advancements allow compliance teams to work more effectively while reducing investigation timelines from weeks to days.

Ensuring Secure and Ethical AI Implementation

As organizations integrate AI into their compliance programs, safeguarding data confidentiality is paramount. Structured data used for monitoring poses lower confidentiality risks compared to investigation data, which often involves sensitive personal and legal information. It is critical for companies to ensure that AI tools operate within secure environments, preventing inadvertent data exposure.

“AI can drive some really big wins, but it’s important to implement it with the same care and controls that you would with any other compliance project,” Parth says.

Demystifying AI for Leadership Buy-In

Gaining leadership support for AI in E&C requires a clear articulation of its benefits. Ethics and compliance teams, traditionally viewed as cost centers, can use AI to demonstrate increased efficiency and cost savings. AI-powered analytics provide real-time insights, enabling proactive risk mitigation rather than reactive problem-solving.

By continuously monitoring 100% of transactions instead of relying on periodic sampling, compliance teams can identify issues early, preventing them from escalating into costly legal and reputational problems. This proactive approach not only enhances compliance efforts but also fosters a culture of transparency and accountability within organizations.

“The bad news is that ethics and compliance is a cost center . . . and it makes it hard to push for any investment for anything in ethics and compliance,” Parth says. “So when it comes to AI, the good news is that you can flip the script on that cost center dimension. When you can frame AI as a way for the ethics and compliance team to be leaner, to be meaner, to do much more with fewer resources, do it faster, and do it more effectively, I think then that becomes more of a compelling story for leadership.”

Navigating AI Implementation in Ethics and Compliance Programs

AI is no longer a speculative tool for E&C programs—it is a necessity for modern compliance functions. While challenges such as data security and ethical considerations remain, thoughtful implementation can unlock AI’s full potential. Organizations that invest in AI-driven compliance will gain a competitive edge by reducing risk, improving efficiency, and fostering a more robust corporate governance framework.

Listen to Parth’s entire interview on using AI in ethics and compliance on Ethisphere’s Ethicast below.