The Ministry of Corporate Affairs Implements Hybrid Approach for Compliance System

Posted under: AI technologies
Date: 2023-10-10
The Ministry of Corporate Affairs Implements Hybrid Approach for Compliance System

The Ministry of Corporate Affairs (MCA) is taking steps to automate its compliance system by incorporating artificial intelligence (AI) and machine learning (ML) tools. However, while the system will generate a list of non-compliant companies, the ultimate decision about serving notices will remain with human officials. This new approach aims to strike a balance between the benefits of AI and the need for human judgment. The MCA’s plan is to deploy the AI-powered compliance system on its MCA21 portal once ongoing upgrades and migrations of forms are completed. According to MCA’s “Vision 2019-2024” document, the goal is to connect all economic and financial regulators’ databases through AI, ML, and real-time analytics to avoid data duplication. While the MCA’s hybrid approach to compliance is a step toward leveraging the benefits of AI, it also recognizes the irreplaceable role of human decision-making in complex and sensitive areas such as legal and medical advice.

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