Rules and regulations are fundamental to the integrity of any system. Following the rules is what makes a system work consistently and stay compliant. The regulatory compliance policies and laws that govern a system are written and enforced by the relevant regulatory bodies, which oversee adherence to laws, regulations, guidelines, and specifications.
Some of the frameworks that shape compliance for U.S. financial institutions include:
- Federal Information Security Management Act (FISMA)
- Dodd-Frank Act
- BSA/AML regulations
- Payment Card Industry Data Security Standard (PCI DSS)
Violating these regulations can result in legal penalties, often in the form of federal fines. Because it is entirely possible for employees to overlook a requirement and break the rules without meaning to, institutions need a system that can track and enforce regulatory compliance requirements reliably.
That need has grown as the regulatory environment keeps shifting. In April 2026, FinCEN proposed a significant overhaul of AML/CFT program rules under the Bank Secrecy Act, and a March 2026 executive order directed federal regulators to review post–Dodd-Frank requirements affecting mortgage lending.
Changes of this scale arrive faster than manual processes can absorb, which is why institutions increasingly treat regulatory change as a system to be managed rather than a task to be handled ad hoc.
RCM and the Need for Automation
Regulatory Change Management (RCM) is the process that keeps an organization's policies, procedures, practices, and controls aligned with the regulations and standards set by the relevant authorities.
Regulators update rules frequently, and learning, understanding, and applying each new requirement by hand has become impractical. Automation is what makes it feasible to map and enforce regulations efficiently, and AI-powered Regulatory Change Management software provides it.
A Bank Policy Institute survey found that executives at major U.S. banks now spend roughly 42% of their time on compliance, up from 24% in 2016. AI software reduces this burden by analyzing patterns and trends within an organization and using them to inform decisions that reduce risk across the enterprise.
How to Ensure Regulatory Compliance
Full regulatory compliance is difficult because it requires rigorous planning and execution of the policies a regulatory body sets out. AI-powered software such as Predict360's Regulatory Change Management software can be the first step toward keeping an organization current with changing regulations. It helps in five main ways:
1. Triggering Alerts and Automating Impact Assessments
Automated Regulatory Change Management software tracks regulatory updates from multiple sources. It triggers alerts, automates impact assessments, and assigns tasks so that process and policy updates get acted on rather than filed away.
2. Distributing Information with Automatic Notifications
Streamlining the change management process lets an organization track regulatory changes more effectively. The system sends automatic notifications to the affected business units and informs them of new changes in time to respond.
3. Analyzing Trends and Patterns for Better Decisions
Automation improves day-to-day operations, and it also improves decisions. AI-powered software analyzes trends and patterns at a scale and speed that manual review cannot match, which supports more consistent decision-making.
4. Mapping Tasks and Tracing the Effect of Changed Requirements
Automated regulatory compliance software maps regulations to the departments they affect and keeps employees supplied with the information relevant to them. The software also automates the translation of regulations and builds an applicability process that maps requirements to a specific location, branch, or asset.
5. Providing Insight for Future Risk Management
Regulatory Change Management software manages present risk and generates insight that can be used to reduce risk proactively in the future, so the organization is not simply reacting to the last change.
Predict360's Regulatory Change Management software supports each of these functions. It is licensable as a standalone web-based application and can also be procured as part of an integrated regulatory change management and learning management solution.
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