Regology's 2024 State of Regulatory Compliance Survey: Shifting Tides

Today’s regulatory space is evolving fast, and understanding both challenges and opportunities in compliance as an organization is critical. Regology's 2024 State of Regulatory Compliance Survey provides insights into the current state and future direction of regulatory compliance, directly from the professionals dealing with these matters daily.

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Key Insights from the Survey

Rapid Regulatory Changes and Resource Constraints: A central challenge identified by 60% of respondents is keeping up with the fast pace of regulatory changes, compounded by significant resource constraints highlighted by 34% of compliance departments.

Technological Adoption Lags Behind Recognition: Despite recognizing the benefits of technology and AI in enhancing compliance processes, a substantial gap exists between this acknowledgment and actual implementation.

Dependence on Manual Processes Persists: With 82% of departments still relying on manual processes and 79% relying on spreadsheets for compliance management, the survey underscores a critical area for efficiency improvements.

The Transformative Potential of Generative AI: While only 39% of participants are highly enthusiastic about using generative AI for compliance, 72% believe in its potential to improve daily compliance task efficiency. This indicates a cautious optimism and a readiness to explore AI-driven solutions.

Growing Concerns Over Compliance Posture: There is an increase in compliance professionals expressing concerns about their organization's ability to meet regulatory requirements, indicating a growing awareness of the complexities involved in regulatory compliance.

Shift Towards Digital Innovation: While traditional methods are still prevalent, there's a slight shift towards embracing digital solutions, with a growing interest in generative AI among those not currently using it.
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Comparative Analysis with Previous Year

The survey provides a comparative analysis with 2023, revealing several key trends and shifts in the regulatory compliance field, two of which are:

Increased Expectation of Fines: The proportion of respondents anticipating fines for non-compliance rose from 49% in 2023 to 57% in 2024, underlining heightened awareness of regulatory risks and the consequences of non-compliance.

Growing Interest in AI Adoption: The focus on new technology, especially generative AI, has significantly increased. In 2024, 74% of non-users are considering AI adoption within the next year, compared to 87% in 2023 who were evaluating or planning to evaluate new technology in general. This indicates a more targeted interest in AI as a solution for compliance challenges.

Demographics: A Diverse and Engaged Audience

The survey draws insights from a broad range of industries, reflecting the universal challenges and opportunities in regulatory compliance. Participants include mid-to-senior level professionals, offering a comprehensive view of the compliance field across various sectors.

The respondents represent organizations of all sizes, with a notable number of participants from entities with over 10,000 employees. However, compliance departments are often relatively small, with most having between 1 and 5 employees, indicating that compliance functions tend to operate with lean teams across various organization sizes.

A significant majority of respondents are based in the United States, making up 89% of the total participation.
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The Path Forward

This year’s survey highlights a sector at a pivotal moment, ready for innovation but still navigating the uncertainties of new technology adoption. The increasing interest in generative AI and the slight shift towards digitalization signal a transformative phase in compliance strategies.

The 2024 Regology State of Regulatory Compliance Survey sheds light on the pressing challenges and emerging opportunities within the compliance field. As the industry stands on the brink of significant change, the findings underscore the importance of adapting to new technologies and investing in talent to enhance compliance strategies effectively.

For organizations looking to stay ahead in a rapidly evolving regulatory landscape, embracing digital innovation is not just an option—it's a necessity. The future of compliance lies in leveraging the power of technology to streamline processes, enhance efficiency, and confidently navigate the complexities of regulatory environments.

‍Discover more insights and dive deeper into the 2024 survey by downloading your free copy here.