Regulatory compliance the big winner from AI, according to Australian organisations

From data sovereignty requirements to privacy laws, regulatory compliance can be a big headache for Australian businesses. See how leaders are using AI to help reduce the burden.

In an increasingly complex regulatory landscape, Australian businesses are finding that the human error inherent in manual agreement management is becoming a significant liability. And, for many of them, AI has become the primary tool for closing the accuracy gap that once plagued their agreement processes.

According to new research from Deloitte, 65% of Australian organisations report that overall agreement accuracy has improved since implementing automated workflows and AI tools. Breaking it down further, these organisations believe this accuracy pays off in three key areas:

• Regulatory compliance: 42% of Australian respondents say that this is where they experience the biggest improvements, with AI enabling stronger adherence to legal, regulatory, and policy requirements.

• Clause consistency: AI’s ability to help standardise language and ensure that agreements adhere to approved legal playbooks was cited by 39% of Australian organisations as the top improvement.

• Clerical error reduction: Using AI to reduce manual errors, omissions, and inconsistencies was cited by 18% as the top improvement.

Then there’s the way that AI helps reduce internal friction. The report found that 6 out of 10 Australian firms improved their exception and deviation rates after implementing automation and AI tools. By using AI to flag non-standard terms early in the process, organisations can:

• Minimise manual intervention: Agreements move through the system faster because fewer “red flags” require a human lawyer to intervene and correct.

• Reduce the frequency of disputes: Just over 4 in 10 Australian respondents indicated that dispute frequency has improved – with clearer, more consistent language leaving less room for interpretation.

Clearly, AI is providing a level of precision that manual reviews simply can’t match. And this precision proves invaluable when building a robust defense against non-compliance, with 65% of global survey respondents reporting “high” or “very high” trust in their workflows’ ability to flag local regulatory risks. This trust grows amongst those who have implemented end-to-end agreement management solutions.

Ultimately, the transition to AI-enabled workflows acts as a permanent safety net for the enterprise. Rather than being a mere productivity tool, AI serves as a “steward” for contract risk and governance, helping Australian businesses to remain compliant with local regulations by autonomously identifying potential risks before they reach the C-suite.

Want to learn more about how AI and automation are paying off for Australian organisations? Get Deloitte’s Capitalizing on AI report here.