May 2025
AI is rapidly weaving its way into every corner of industry, and indeed, our everyday lives. The world of regulatory compliance is no exception. AI’s ability to process vast volumes of data, identify patterns, and automate routine tasks has the potential to revolutionise compliance and data management.
But as it becomes more embedded in governance processes, it’s essential that we recognise AI as a valuable and powerful tool – not as a substitute for human decision-making or responsibility. Or to look at it another way, AI tools serve as useful input, not output.
Let’s take a look at how that works in action and the evolving laws that are being developed to ensure that AI is used safely, ethically, and transparently.
Improved efficiency and reactiveness
When used thoughtfully, AI is a powerful tool that can help streamline operations, reduce manual tasks and save valuable time and resources. For example, AI tools can scan data in an instant to uncover anomalies or inconsistencies. It can also help update regulatory registers and prompt updates. The benefits are clear: less human error, more accurate records, and faster problem solving.
With AI tools, compliance managers can become more proactive than reactive. For example, by monitoring employee behaviour, AI can identify gaps and mistakes in policy enforcement, prompting swift intervention before issues have a chance to escalate.
When it comes to compliance documentation and reporting, AI can also be of benefit. Under the Data Protection (Jersey) Law 2018, organisations must demonstrate accountability by maintaining clear compliance records. AI can streamline this process by gathering, organising, and maintaining documentation, ensuring compliance records are always up to date, easy to access and audit-ready.
Governance and strategic planning
AI can also be extremely helpful in informing strategic planning. By analysing historical data and new trends, it can help anticipate areas of regulatory change and business risk. It can help managers to allocate resources and assign priorities more effectively. It can summarise vast datasets and analyse regulatory developments to highlight gaps in internal policies.
However, coming back to our point about input and output, AI should never be used to churn out strategies or policies – this will always require human judgment and ethical reasoning that is simply beyond AI’s capabilities.
Importance of Data Protection Impact Assessments (DPIAs)
Under the Data Protection (Jersey) Law 2018 (and the GDPR frameworks in the UK and EU), an organisation is required to conduct a DPIA if its data processing practices might pose a high risk to individuals – the use of AI in data handling falls squarely within this high-risk category.
For example, AI tools that are used for meeting transcription, minute taking, or real-time analytics on customer interactions – all of which are fast becoming everyday tools. These tools often process sensitive information or create new data sets from speech and context, which must be assessed for fairness and transparency.
Before adopting any kind of AI, a DPIA is essential to identify risks and mitigate them. It also forms vital evidence of an organisation’s compliance and due diligence.
The EU AI Act and global compliance law
As AI regulations continue to evolve, it’s essential for businesses and organisations to plan ahead.
The EU AI Act is the world’s first detailed law regulating the use of artificial intelligence. It was formally approved in 2024 and is expected to take full effect in 2026. The Act categorises AI systems by risk level—unacceptable, high, limited, or minimal—and imposes stricter rules on higher-risk uses like facial recognition, employment tools, and credit scoring. Even general-purpose AI tools will be subject to stricter rules if their use poses a risk further along the line.
Before using high-risk AI systems, the Act states that organisations must make sure the technology is safe, fair, and well-documented. This means being transparent about how it works, using human oversight, high-quality data, managing risks, and meeting regulatory standards—all before the system goes live.
Beyond the EU, nations including Canada, Brazil, Singapore, and the United States are also developing AI governance frameworks. This means that multi-national organisations (or those that process data outside of their immediate jurisdiction) must start to include global AI compliance within their risk strategy.
If you haven’t done so already, now is the time to start incorporating AI risk checks into the procurement process, putting the right protections in place with AI vendors, and ensuring your organisation’s privacy policies align with new AI law.
Conclusion: Keeping compliance human in the AI age
AI offers huge potential to simplify, scale, and strengthen compliance—but only when used with care. From lean charities to global enterprises, the question is no longer if AI should play a role, but how it can be used responsibly and ethically.
Used well, AI helps organisations of all sizes manage risk, stay audit-ready, and respond to changing laws like the Data Protection (Jersey) Law 2018 and the EU AI Act. It enables smarter auditing, sharper reporting, and faster insight.
But it’s essential that AI never replaces professional judgment or ethical oversight. It simply lacks the context, compassion, and conscience required when dealing with data handling. While AI can certainly support governance, only people can lead it.
To stay compliant in an AI-powered future, organisations must balance innovation with integrity. That means embedding human oversight into every system, conducting DPIAs before introducing AI, and aligning privacy practices with evolving global standards.
At PropelFwd, we believe that the most powerful safeguard to data privacy in the AI age is human responsibility. We provide essential advice to organisations looking to adopt AI tools. Our experts combine deep knowledge of data protection law with practical tools to support ethical AI use. If you’re adopting AI, talk to us first.
