Computerworld reports: “The Commonwealth Bank of Australia (CBA) has revealed the results of a regtech pilot that uses natural language processing and artificial intelligence to convert regulatory texts into compliance obligations.”
According to the report: “What took CBA’s compliance team six months, was completed by Ascent within two weeks. The obligations register created was scrutinised by legal firm Pinsent Masons and found to be 95 per cent accurate.”
The question arises, is 95 per cent accuracy good enough? Will it be lawyers who are called upon to bridge the gap between 95 per cent and 99.9 per cent?
Some of the testing revealed accuracy well below 95 per cent. When it was investigated further, it was found that the regulation was drafted ‘vaguely’ and not to a level that would be clear to an algorithm, although a human would be able to decipher it without too much difficulty.
A new standard of drafting could emerge where the goal is ‘algorithm-acceptable’.
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