New human rights due diligence laws. Rising AI rules. Stricter monetary crime directives. These developments and extra ought to depart organizations in little doubt that their reporting necessities have change into extra onerous than ever in 2025.
In our newest weblog, we take a look at how compliance officers are overcoming this problem by leveraging AI to supply extra experiences in much less time. We additionally discover how a Accountable AI mannequin helps to enhance the reliability of experiences to realize the arrogance of managers, buyers and regulators.
Why reporting wants an organization’s consideration much more in 2025
Ask any compliance officer and they’re going to let you know that calls for for reporting have skyrocketed lately. The obvious driver for this has been the introduction of new regulatory requirements which demand that firms publish experiences on varied actions. Current examples embrace:
- The EU’s Company Sustainability Due Diligence Directive, which got here into pressure in July 2024, mandates firms to publish info on how they establish and handle human rights and environmental impacts of their operations and provide chains.
- Three main stock exchanges in China launched new pointers for listed firms in 2024, which require them to report on sustainability-related info akin to their impacts on local weather change and pure ecosystems.
- A invoice at present being thought of by Brazil’s parliament would require know-how suppliers to conduct a danger evaluation of their AI methods and report on how they adjust to necessities round transparency, knowledge administration, and knowledge safety – or face a advantageous of as much as 2% of their annual income.
Furthermore, due diligence, compliance and evaluation groups are dealing with inside calls for from their c-suite to supply research-based, data-driven experiences assist drive business opportunities. They could be requested for evaluations of potential M&A targets; new markets to enter; key details about rivals and their monetary well being; attainable patents; and extra. This growth acknowledges the very important position of compliance and analysis as a constructive driver of recent enterprise. But it surely provides but extra duties to an already stretched and infrequently under-resourced space of the group.
The results of these exterior and inside tendencies is that analysts now want to supply extra (and extra frequent) experiences on a number of matters, together with:
- Disclosures mandated by the regulator, akin to the necessity to publish actions to establish and stop fashionable slavery, or climate-related info.
- Stories on enhanced due diligence carried out after screening has decided a 3rd occasion or buyer to be excessive danger.
- Briefings demanded by the corporate’s board to provide an summary of risk-relevant info on a sure matter to facilitate a fast and clear choice by administration.
- Evaluation requested by the gross sales or business workforce of a potential new funding or M&A goal, or a deliberate enlargement into a brand new business or jurisdiction.
MORE: Technology and data to monitor global risk and find new opportunities
How AI could make reporting simpler and environment friendly
Rising reporting calls for imply that firms want to watch a variety of information units then summarize the principle findings in a transparent report tailor-made for an inside or exterior viewers. That is massively demanding of workers time as a result of a report must comprise all related info whereas remaining as concise as attainable and delivered with accuracy in the popular format for every viewers. Corporations have discovered that the answer to this problem may be discovered within the capabilities of AI.
AI instruments can automate reporting to a significant degree by quickly pulling collectively varied sources of knowledge into a primary draft of a report which follows a coherent construction with logical grouping of themes. This protects the analyst important time in producing the report, permitting them to concentrate on reviewing and modifying an in depth draft earlier than sharing it with administration or regulatory authorities as applicable.
One space the place reporting has already been modified by AI is within the monetary providers business. A latest KPMG survey of economic leaders discovered that 72% of economic firms already use AI in monetary reporting, and 99% are anticipated to make use of it by 2027. However organizations in all sectors can profit from utilizing AI to enhance their reporting capabilities.
MORE: Top ways financial services teams are using generative AI
Accountable AI: Guaranteeing AI-driven reporting meets excessive moral requirements
Whereas AI has monumental potential for reporting, it additionally brings new dangers for firms to handle. If AI instruments usually are not transparently understood and powered by credible and accurate data, their outputs may be biased and even inaccurate. Using opaquely sourced knowledge additionally opens organizations to potential enforcement motion for breaches of information privateness and knowledge safety.
This creates an issue for reporting as a result of these experiences are among the many most vital paperwork a company will produce. They’re used as the premise for important investments or strategic choices, and as formal declarations of an organization’s compliance with a regulatory requirement. If AI introduces biases or errors right into a report, this might create new regulatory dangers for firms – which is a good distance from the report’s authentic purpose of assembly a regulator’s requirement.
One of the best ways for firms to make sure their reporting is correct is to implement a Accountable Enterprise strategy to AI. Which means bringing in AI instruments from reliable suppliers who’ve set out ethical principles and using credible data that has been collected in an moral means and licensed for particular use in AI instruments. Accountable AI permits firms to enhance the effectivity and effectiveness of their reporting whereas successful the arrogance of every report’s recipient.
MORE: The main reasons AI projects fail—and how to avoid being next
Implement Accountable AI reporting with credible knowledge and know-how from LexisNexis®
As a longtime knowledge supplier for over 50 years, LexisNexis has intensive, long-standing – and in some circumstances, unique – content material licensing agreements with publishers worldwide. We provide knowledge to allow you to advance your objectives whereas recognizing and respecting the mental property rights of our licensed companions. Our transparency round our trusted knowledge ought to offer you confidence to leverage it responsibly on your personal AI initiatives and improve the effectiveness and effectivity of your reporting.
For instance, our new AI-powered analysis platform, Nexis+ AI™, combines time-saving generative AI instruments with our huge library of trusted sources. This protects you time on core analysis duties like doc evaluation, article summarization, and report technology, and helps drive ahead your capability to summarize and report in a accountable means.
Download our toolkit to study extra concerning the how your organization can understand the potential of AI whereas staying forward of evolving rules.
