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Justice, SEC May Look to AI for Compliance

Bloomberg BNA: Technology, Telecom, & Internet Blog

26 Jan 2017

A recent Bloomberg BNA global investigations and technology panel found that 2016 presented an increased trend in U.S. companies using artificial intelligence--technologies utilizing human-like learning and reasoning ability--to monitor and identify actions in potential violation of U.S. fraud or corruption laws.

For some time now, companies facing prosecution by the DOJ or SEC for corporate crimes have been using AI technologies, such as predictive coding, to identify potentially sensitive documents, e-mails, and transactions.  And as more corporations utilize AI technologies to monitor employee behavior in real time, federal agencies will begin to expect the use of AI for compliance.

"It’s common for the DOJ and SEC to 'ratchet up' expectations of companies’ use of new technologies such as data analytics once they’ve seen how such tools can improve efficiency and accuracy", said Charles Duross, chair of Morrison & Foerster’s global anti-corruption practice.

“I don’t think that’s probably best practice yet in terms of what DOJ or SEC expect, but I think it’s moving that way,” Duross said. “When they keep hearing companies that have that, they will start to have those expectations eventually.”

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