How to gain efficiency and governance from end to end
The analysis of normative and/or legal documents is one of the most complex tasks in the universe of legal, regulatory, and governmental and institutional relations areas.
This is due to two major factors: the first is that the most relevant information is not always clear or explicit, but rather coded in the details, between the lines, emerging from the logical interaction between the text and the context.
The second factor is the volume and complexity of these documents, which frequently exceed the interpretation capacity of a single person, either due to the technical breadth or the specificity of the regulatory content.
In this challenging scenario, Artificial Intelligence (AI) has proven to be a powerful ally to make the analysis process more agile, effective, and less susceptible to errors.
With this in mind, I bring some insights on how to apply this new technology securely in your daily routine.
Enjoy the reading!
TIP 1 - AI as a facilitator and safety net for analysis: focusing on the right information
AI's first major contribution is its ability to quickly identify and highlight the most important elements within a normative text.
Instead of investing precious time panning through extensive documents, the analyst can focus their efforts on what really matters: interpreting and making decisions based on already localized information. This not only reduces manual effort but also increases the quality of analysis and mitigates the risk of costly mistakes.
We can compare this use of AI to a collision warning system in a car: it warns about risks that could go unnoticed, increasing the driver's safety and efficiency.
Also read our article Automated monitoring of environmental licenses by financial institutions.
TIP 2 - Distributed intelligence: AI as a catalyst for collaboration
The second benefit of AI goes beyond automating repetitive tasks. By identifying patterns, key elements, and objects of interest in large volumes of text, AI can intelligently distribute this information among different experts on the team.
This allows for a collaborative analysis, enriched by multiple perspectives, something that would hardly be possible in a purely manual model or one based only on keywords.
This type of distributed intelligence is critical to addressing the growing complexity of regulatory issues and creating a solid foundation for strategic decision making.
TIP 3 - AI is powerful, but beware of hallucinations, ALWAYS REVIEW
It is important to remember that, although AI has advanced significantly, it does not think like a human being.
Language models like the ones we use today operate based on statistical patterns extracted from large volumes of data. This means that, in uncontrolled environments, these models can generate responses with errors or “hallucinations”, suggesting incorrect information with high apparent confidence.
In times of stress or pressure, it is very easy to accept the suggestions, as the AI's writing is fluent and convincing, but it can be deeply wrong.
It is also worth checking out the article Sigalei's Reporting Agent: automate analyzes with reliable AI.
TIP 4 - AI is incapable of building strategies or making predictions
The internet, the data source used to train these LLM-based AI models, has a lot of information, but the real world is still much more complex and nuanced than all the information on the internet.
Therefore, AI is unable to simulate or extrapolate the outcome of a set of actions applied to specific objects.
This simulation is a critical step for any successful strategy. So trusting AI to put together a strategy for you is a mistake.
Conclusion: AI is a great librarian, but a terrible advisor
By applying AI methodically, with clear criteria and human supervision, it is possible to transform the regulatory analysis process, making it not only faster but also smarter.
AI does not replace human judgment, but expands its ability to comprehend by locating information to feed a given decision-making process. Therefore, it is a great librarian, but a terrible advisor.
At Sigalei, we believe that the analysis of regulatory documents can be much more strategic with the support of the right technology. If you want to know how to apply artificial intelligence effectively in your GovRel, Legal and Regulatory processes, get in touch with us. We will be happy to share our experience with you.
Also read our article: Why choose Sigalei? The convergence between AI, governance and the next frontier of productivity.
