initial situation
A specialized compliance software company develops solutions for regulated companies in the financial sector. Banks and financial service providers are facing a growing challenge: They must meet thousands of legal requirements — from terrorist financing checks to BaFin-Requirements up to EU AI Act. This regulatory landscape has grown historically, is highly complex and is constantly changing.
The strategic question was clear: How can regulatory obligations be efficiently recorded, managed and kept up to date? Until now, highly qualified compliance experts and lawyers have manually analyzed extensive legal texts, identified individual obligations, documented dependencies and maintained them in distributed lists. When legislative changes, the entire process had to be repeated in a time-consuming, cost-intensive and error-prone manner.
The company recognized the potential of modern AI technologies to fundamentally improve this process. Together with AMAI, an intelligent platform should be developed that automatically extracts regulatory obligations from legal texts and makes them available in a structured form in a central governance solution.
Our solution
AMAI developed the backend of an AI-based compliance management platform based on large language models and specifically designed for analyzing complex regulatory documents. The technical challenge was to automatically process legal texts of up to 400 pages and several levels of structure, while maintaining both the structural hierarchy and the precise legal wording.
The solution comprises the following core components:
- Structure-preserving document analysis: The focus is on a multi-stage AI pipeline based on cloud-based large language models. Our own document parsing algorithms completely capture the complex chapter structures with up to six levels of structure and make them available to the language model as a context. This is crucial for a correct understanding of legal relationships.
- Intelligent extraction with context preservation: Documents are divided into processable sections using intelligent chunking, with higher-level structural information being carried along. The platform extracts regulatory obligations with structured metadata and exact source references.
- Precision through validation: Comprehensive prompt engineering, structured output validation and multi-stage quality checks ensure that extracted obligations are precisely referenced back to original texts. The platform also automatically normalizes different legal nomenclatures from different legal areas.
- Scalable architecture: The backend is based on Python with FastAPI, PostgreSQL and parallel task processing by Celery. This enables the simultaneous analysis of multiple documents with automatic error handling.
Results & business impact
The solution demonstrates the potential of AI-powered compliance automation. User acceptance tests confirmed the technical functionality: The platform successfully analyses complex legal texts with hundreds of pages and extracts structured obligations with precise source references.
The business impact for regulated companies: Automation significantly reduces the time spent by highly qualified legal experts, accelerates compliance processes when legislative changes and creates a more complete overview of regulatory requirements. This lowers personnel costs and minimizes compliance risks.
Your challenge with AI-powered compliance automation?
AMAI connects AI expertise with Software development expertise for production-ready compliance solutions in regulated industries. From requirements analysis to scalable implementation.
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