The Rise of Regulatory Intelligence

As the complexity of regulations grows and global oversight becomes increasingly stringent, businesses find themselves navigating a labyrinth of compliance demands. For compliance officers and risk managers, keeping track of these rapid changes while ensuring organizational adherence can be an overwhelming challenge. Enter regulatory intelligence.  

This emerging field is revolutionizing how organizations handle compliance, providing tools that not only track regulatory changes but also integrate them seamlessly into business operations.  

What is Regulatory Intelligence?  

Regulatory intelligence refers to systems and technologies designed to manage the vast and evolving landscape of regulations. At its core, regulatory intelligence helps businesses stay informed, make strategic decisions, and ensure compliance by:  

• Tracking regulatory changes: Keeping up with amendments and new legislation across different jurisdictions 

• Contextualizing regulations: Highlighting the relevance of specific regulations to an organization’s industry or operations 

• Implementing regulatory requirements: Mapping changes into internal processes to ensure compliance 

This goes beyond simply monitoring regulations; it’s about offering actionable insights and creating scalable, automated compliance strategies.  

Why is Regulatory Intelligence Essential Today?  

Growing oversight, geopolitical upheavals, and stakeholder demands for operational transparency characterize today's business environment. Compliance teams face growing pressure to demonstrate the effectiveness of their strategies. Key challenges include addressing the volume and complexity of regulatory updates—from sustainability directives like the CSRD to cybersecurity mandates like the SEC Cyber Disclosure Rules.  

Traditional methods of regulatory management, such as outsourcing to law firms or relying solely on in-house teams, can’t keep pace with this dynamic landscape. Regulatory intelligence tools fill this gap by enhancing efficiency, cutting costs, and improving compliance programs.  

Top Use Cases for Regulatory Intelligence  

Leading organizations are adopting regulatory intelligence systems across multiple business functions. Here are a few key applications: 

1. Centralized oversight 

Regulatory intelligence allows teams to consolidate regulations and build centralized repositories. This approach aids in operationalizing requirements systematically while creating an audit trail for risk management.  

2. Automation  

With AI and machine learning, regulatory intelligence tools automate tasks like data aggregation, regulatory impact assessments, and change alerts. For example, advanced platforms offer features like generative AI to interpret the implications of laws, allowing faster implementation of regulatory mandates.  

3. Prioritization of risks  

These tools enable businesses to focus on high-priority risk domains. Whether ensuring compliance with financial services regulations or cybersecurity laws, organizations can align their strategies with the most critical areas impacting their bottom line. 

4. Cost efficiency  

Companies are moving away from heavy dependency on costly external legal counsel by leveraging regulatory intelligence to manage compliance internally. This shift not only reduces legal overhead but also fosters a proactive, scalable compliance strategy.  

5. Cross-functional collaboration  

By integrating compliance processes with other functions, such as enterprise risk management (ERM) or audit, businesses can operate more cohesively. Regulatory intelligence ensures that teams work from the same rulebook, from legal to operations.  

The Future of Compliance  

The Gartner® Market Guide for Regulatory Intelligence Solutions estimates a 20.8% compound annual growth rate (CAGR) for the global regulatory technology market, which it expects to grow from $7.6 billion in 2021 to $19.5 billion by 2026. For businesses, this makes selecting the right tools essential.  

Organizations must adopt a risk-based approach to build a robust compliance program, balancing in-house efforts with advanced tools. This ensures they are not only meeting regulatory demands but also enhancing operational efficiency and trust with stakeholders.  

Learn More About Regulatory Intelligence  

To explore the latest analysis and regulatory intelligence trends, read the Gartner Market Guide for Regulatory Intelligence Solutions today, compliments of Archer for a limited time. 

Gartner, Market Guide for Regulatory Intelligence Solutions, Lauren Kornutick, Lexi VerVelde, 15 October 2024 

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