When Evgeny Likhoded was working on regulatory implementation projects at Morgan Stanley, he realized how doing manual paperwork and documentation was the main pain point for financial institutions. In his words, the "internal processes without any technology were not working anymore." With the aim to "create a real-time collaboration platform allowing compliance risk and legal teams to work on content and documents in real-time," Likhoded launched AI-based RegTech firm ClauseMatch in 2012. Essentially, the platform enables users to manage enterprise policies. These compliance documents are required to be refreshed every year and the ClauseMatch platform automates the tasks eliminating operational risks.

Up until recently, compliance has mainly relied on people. And as a result of the significant increase in regulatory reporting requirements for financial institutions over the last decade, demand for compliance professionals has surged. Companies have had no choice but to hire more and more compliance staff, in an effort to tackle the growing regulatory burden. However, over the last few years, technology has begun to play a much larger role within compliance. Financial institutions and regulators have realised that by harnessing the power of technology, and more specifically, the power of artificial intelligence (AI) and machine learning (ML), a considerable proportion of the compliance function can actually be automated, reducing the burden on institutions and compliance professionals.