AI solution to check documents for regulatory compliance issues

Innowise built an AI compliance software that leverages advanced algorithms to check whether documents fit the regulations.

Customer

Industry

Finance

Region

Client since

2023

Our client is a fintech startup building a solution that would help clients automatically check their documents and contracts for regulation compliance and edit them if necessary.

Detailed information about the client cannot be disclosed under the provisions of the NDA.

Challenge

Our client’s customers faced challenges managing their internal documents. Due to the large volumes of contracts and agreements flowing through the legal departments regularly, it took a lot of time for employees to check all of them for compliance. They had to manually go through each entry and edit them if they were compiled incorrectly.

Solution

Innowise engineers proposed an AI compliance software solution that would use the advanced algorithms to scan the contracts and find those that do not fit the predefined regulations. In case the solution finds such documents, it offers corrections based on regulatory norms.

The software also keeps tabs on regulatory updates, so that it can always update the contracts in accordance with the latest requirements.

To facilitate security during document flow and compliance checks, the entire solution is hosted in blockchain.

Software features

AI-driven contract processing system: at the heart of the solution is an advanced AI-powered system that automates the contract review process. The system checks whether these contracts comply with the relevant regulations, significantly reducing the time and effort required for contract review;
Regulatory compliance optimization feature: the feature generates comprehensive draft contracts based on predefined templates that are automatically aligned with current legal and industry standards. It adds any missing crucial entries, minimizing the risk of non-compliance due to oversight or the evolving nature of regulations;
Template management: incorporating a standardization framework, the template management feature keeps contract patterns consistent across the entire digital system. This standardization makes it easier for companies to adapt to changing regulatory and business requirements, and keeps contract documentation uniform;
Critical points identification: the solution automatically identifies and flags critical points within contracts, such as negotiable terms and potential deal-breakers. This feature helps to preemptively address issues that could otherwise hinder contract negotiations or execution.

Technology layers

Business layer: a customizable node layer allows the software to be finely tuned to meet the specific needs of any business, facilitating custom connections with higher-level parachains for effective file and process management. Businesses can implement custom rules for processes, such as scheduled database re-checks and differential access rights, enhancing process integrity and security;
AI layer: a dedicated parachain connects the business layer with a custom AI algorithm designed for compliance analysis of various document types. This algorithm recognizes regional and business-specific features and alerts users about any non-compliant elements. Tied to the blockchain, it ensures transparency in its audit and development processes, adaptable to any regulatory environment thanks to its industry-agnostic framework. The layer helps keep documents adherent to both local and global regulatory standards;
Data storage layer: this layer comprises isolated parachains and file systems for the secure collection and storage of business data. Each parachain interacts solely with the nodes connected to its designated business unit, safeguarding sensitive information and ensuring a protected, seamless data flow;
Relay chain: the relay chain manages all nodes and parachains, validating transactions to keep communication secure and efficient. Its primary role is to uphold the integrity of the platform’s messaging system and user security;
Permission tree: the feature enables precise configuration of user access rights, ensuring that businesses can securely manage both internal and external user privileges. From restricted to administrative access, the permission tree module provides control over user activities, which strengthens overall platform security and governance.

Technologies

Typescript, React

Chroma DB

Substrate, Wasm

Langchain, Falcon, LLaMA, GPT-3.5

Cloud

Cloudflare, VULTR, OpenShift

Storage

Backblaze

VCS

Git

Process

Upon gathering and recording the client’s needs, Innowise kicked off the development phase. The team employed the Scrum methodology, organizing their workflow into two-week sprints, complemented by regular meetings with the client to address crucial matters. For task management and project discussions within the team, Slack and Jira served as the primary tools.

Team

Project Manager

Business Analyst

Domain/Blockchain Expert

Solutions Architect

UI/UX Designer

Machine Learning Engineers

Front-End Developers

Back-End Developers

QA Engineer

DevOps Engineer

Expected results

The innovative AI-based solution delivered by Innowise marks a significant step forward in the field of legal compliance within organizations. The implementation of automated document processing has not only minimized human errors and delays but also ensured that tasks are executed efficiently and on schedule. Furthermore, the system’s capability to adapt to real-time regulatory changes empowers organizations to keep up with compliance requirements and mitigate risks associated with non-compliance. The transparency and auditability introduced by this solution enhance accountability across all levels of the organization.

Project duration

April 2023 - November 2023

58%

increase in document management speed

71%

increase in transparency and auditability

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