AI & Compliance… The Conversation Continues
You Asked. We Answered.
StarCompliance’s (Star) recent webinar, AI in Compliance: Regulatory and Risk Management, brought together an engaged audience from across the compliance community—and the questions came flooding in. While we couldn’t get to everyone during the live event, we’ve got you covered.
Alan Morley, Director of Anti-Financial Crimes and BSA Advisory at Huron, and Steve Brown, Head of Business Development at Star, took the time to answer your top questions. Whether you’re exploring AI adoption, managing risk, or preparing for future regulatory expectations, their insights offer practical takeaways you can use right now.
Keeping the Conversation Going
As part of our commitment to meaningful dialogue, we’re sharing the top seven questions the audience was most intrigued about during the live webinar. Want to revisit the full discussion? You can watch the webinar on demand here.
1. How are regulators responding to the increased use of AI?
Steve: “Regulators are taking a cautious approach to AI adoption, especially in banking, where there’s a strong focus on how it’s being used in areas like credit decisioning.”
Alan: “We’re seeing growing regulatory scrutiny across the board, particularly around the integrity of AI models and ensuring firms can demonstrate compliance with their internal AI policies.”
2. Which AI tools are most useful for compliance monitoring, especially for assessing risk and controls?
Steve: “Many firms are leveraging AI for compliance risk assessments and risk control self-assessments. It’s particularly useful for gathering control data and drafting test scripts—we’re doing this ourselves, and it’s been a huge time-saver.”
Alan: “Absolutely, especially when it comes to User Acceptance Testing. AI-generated UAT scripts can dramatically accelerate prep time and free up testing teams to concentrate on more critical tasks.”
3. Where should I start if I want to use AI for regulatory change management and developing policies/procedures?
Steve: “Start with vendors that specialize in regulatory horizon scanning and change management. Some can also generate policies and procedures directly from regulatory guidance. But even on your own, you can take a regulation, summarize it, and draft or align policies using AI. It’s efficient and highly effective.”
4. Are firms expected to test their use of AI? How is this usually implemented?
Alan: “If your policy says you’ll test AI, then you must – especially in financial institutions, where audits focus on policy adherence. Under BSA (Bank Secrecy Act/Anti-Money Laundering), AI model testing is a legal requirement. Even in areas like marketing or underwriting, testing is expected, though more flexible. I’ve also seen firms use AI to scan policies for testing references and frequencies, creating a simple matrix to ensure alignment with internal commitments.”
5. Is AI in compliance a job taker or a job maker?
Steve: “AI is definitely a job maker. AI is introducing new requirements—like data governance and statistical expertise—which opens up new opportunities. Especially for younger professionals entering the industry, their skills in data and analytics are a huge asset. Firms are already looking to hire with this in mind.”
6. Can AI help with policy reviews and internal audits?
Steve: “AI can identify every clause in a policy where testing or monitoring is mentioned and organize it in a spreadsheet. This makes it easier to track frequency commitments and test accordingly. It’s a practical, efficient approach.”
7. What’s your outlook on AI in compliance moving forward?
Steve: “I’m optimistic about AI’s role in compliance. It’s not replacing teams—it’s enhancing them. AI helps drive better decisions, faster responses, and deeper insights. With the right governance in place, the benefits clearly outweigh the risks.”
Alan: “Absolutely. AI is a game changer, not a job taker. It’s creating new opportunities in areas like data analysis and policy testing. As adoption grows, skills like data literacy and governance are becoming essential, strengthening the compliance function overall.”
Driving Compliance Forward with AI
As AI continues to transform the compliance landscape, regulatory expectations are evolving just as rapidly. With increased scrutiny and rising enforcement activity, firms must adopt AI thoughtfully and ensure strong governance to stay ahead of emerging risks.
Star is already putting AI to work with innovative tools like our AI-assisted Marketing Compliance Review product—designed to streamline oversight and enhance accuracy. But we’re not stopping there. We’ll continue exploring new ways to responsibly integrate AI to move our compliance solutions forward and deliver greater value to our clients.
To learn more about Star’s full SaaS-based products and services, schedule a personalized demo here.
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