With corporate governance and corporate regulations across the globe, the compliance burden has become a relentless challenge. These are extremes of permanently evolving laws, requirements and data protection regulations that require time, resources, and precision targeting. When a single violation can result in hefty penalties, damaged reputation, or even legal action, the need to maintain compliance is intense and involves navigating complex rules and managing mountains of paperwork.
This is a life and death situation and dealing with conventional procedures of managing paper-based documents can be inefficient and time-consuming. Automation and intelligent compliance tools will be the focus of this analysis to reinforce how effective they are in the new reality of numerous compliance requirements and standards, minimizing human error while allowing for complete and timely compliance with the dynamic requirements of the legal system.
Challenges of Paper-based systems
In industries such as finance and healthcare that are heavily regulated, compliance forms the cornerstone of the trust placed by clients in the company and vice versa. But, coping with compliance using paper systems is no walk in the park. According to a report by IBM and the Ponemon Institute healthcare sector has been the most expensive industry in terms of responding and recovering from data breaches since 2011. In 2024, the average cost attributed to breach in this industry was pegged at a whopping $9.8 million!
To prevent such detrimental consequences, a pattern often seen is that there are stringent guidelines that demand the maintenance of accurate records, proper documentation of transactions, and production of records on demand. Searching through cabinets full of files during an audit or in the process of answering questions in a lawsuit takes some precious time and might even result in mistakes that compromise compliance.
What adds fuel to the fire is that the physical retention of paper documents carries additional security concerns. Misfiled or misplaced papers can mean nondisclosure which indirectly empowers sensitive information to leak on legal standards preventing confidentiality such as HIPAA and GDPR. It is estimated that on average, 7.5% of documents will be lost and never recovered which spans various industries but still remains consistently low but broadly is detrimental to patient security and ornamental trust.
AI-Driven Document Digitization: Making Compliance Easier for You
The challenges of compliance can be easily handled with the help of AI-powered document digitization. The use of artificial intelligence can assist in gathering significant information from unstructured data sources such as contracts, invoices, and medical files, ensuring that relevant information is gathered in a timely and efficient manner. The Association for Intelligent Information Management’s (AIIM) report reveals as much as 95% improvement in accuracy for the process of document digitization with the help of AI.
This accuracy helps in mapping the procedures in relation to compliance through the transfer of physical documents into structured digital records.
AI-based systems for document digitization are also able to index documents, annotate them with relevant metainformation, as well as organize them into relevant digital repositories, which can be easily retrieved in the course of an audit or as part of a regulatory request. But, for example, the primary benefits of digitization are not limited to aforementioned efficiency; security is also improved. Such systems can track compliance by indicating when discrepancies occur within and between documents, automatically ensuring that all required documentation is present, and automating the distribution of documents to the relevant departments for approval. In addition, digital files may be digitally protected and kept in places with limited user access authorization. Finally, extensive audit logs give businesses a picture of when, where and for what purpose a record was opened, and what operations with the document were performed, which is important for business self-regulation and regulatory audits.
Automated Compliance System Benefits Across Key Industries
It is obvious that compliance is of utmost importance in high-risk sectors such as finance and healthcare. With the help of automated compliance with the use of AI-powered mechanical handling of regulatory forms, firms from various fields gain plenty of advantages and minimize the extent of human failings that emerge naturally.
In finance, routine works such as auditing or reporting or even monitoring transactions can be automated which reduces the chance of making human errors significantly. This ensures organizations can comply with multiple complex standards like GDPR, SOX, and AML in real time. Languages powered by artificial intelligence can assist to locate potential breaches in compliance by signal scanning and instant data analysis, allowing companies to avoid many costly penalties. This not only enhances precision, but also allows compliance teams to spend their time on creative issues rather than on routine. A recent study shows that 77% of financial institutions will focus on digital transformation growth in the next three years.
In healthcare institutions such as these, there is great concern for privacy as a patient has to trust professionals with the deepest and most delicate information about themselves. As of 2024, the global average for costs per breached record for the healthcare sector was $9.23 which is quite substantial and is much larger than the average cost across industries. As per HHS in the US, there are said to be around 2 million people in the country who are suffering from a mental illness but did not pursue treatment because of privacy issues. On a positive note, artificial intelligence can prevent 90% of sensitive data breach incidents!
When technology is used for automated compliance, it helps facilitate patient data in accordance with the state laws of HIPAA plus it follows the protocols needed for the efficiency of medical billing, claims, and patient care documentation. Healthcare practitioners can integrate automated processes so that there is less emphasis on administration work, enhance the prevention of data leakage, improve the interoperability between patients and providers, via clinical decision support tools, applications when required and even at distant times. Because automated compliance systems can be scaled, institutions can respond to new laws and regulations with rapidity enabling them to keep up with the requirements placed on the safety and trust of patients and other stakeholders.
Conclusion
As the world changes to become more integrated with big data, there will always be a need for enhanced solutions to cater to compliance requirements. Given the fact that compliance can never be compromised, document digitization powered by artificial intelligence allows businesses to remain compliant while enhancing their overall operations with ease.
Felix Solutions provides best in class document digitization solutions that uses advanced AI, ML and natural language processing technology to give an astonishing accuracy of 99% in unstructured data extraction from documents.
This technology simplifies the flows of document processing and also assists the organizations in maintaining appropriate compliance requirements. With the help of automated processes such as invoicing, contract elimination, and claims management, Felix document digitization technology enhances operational efficiency and assists businesses in adhering to regulatory standards with ease. With an easy setup, there is little room for organizations’ core systems to be altered and they can spend time interacting with clients while everything that is exhausting is done by Felix.
If achieving enhanced compliance and slashing time and costs sounds appealing to you, make sure to reach out to us now and schedule your demo!