The U.S. Department of Justice (DOJ) recently announced significant updates to its evaluation of corporate compliance programs (ECCP) policy document, a critical reference for determining whether corporate compliance programs are robust and effective. These changes, which became effective on September 23, 2024, are designed to address evolving risks, particularly around emerging technologies like artificial intelligence (AI) and the use of data analytics in compliance operations.
Let’s explore what these updates mean for your organization and how to ensure your compliance program stays ahead of the curve.
Understanding The DOJ’s Evaluation Of Corporate Compliance Programs
The ECCP is a key resource that the DOJ uses to assess whether a company’s compliance program is well-structured and effectively implemented. The DOJ’s approach to evaluating corporate compliance now includes a particular emphasis on how businesses are managing the risks presented by AI and other new technologies. This evaluation can impact decisions related to criminal charges, monetary penalties, and ongoing compliance obligations such as corporate integrity agreements.
New Focus On AI And Emerging Technologies
The DOJ has made it clear: the rapid development and use of AI presents new challenges that must be managed proactively. Companies are now expected to have specific policies, procedures, and safeguards in place to certify that AI technology is not misused, whether intentionally or recklessly. Prosecutors will ask detailed questions about AI risk management, such as:
- Does the company assess how AI could impact its ability to comply with laws?
- How does the company integrate AI risk management into its broader enterprise risk strategies?
- What measures are in place to prevent AI misuse and guarantee trustworthiness?
- Are there controls ensuring AI is used as intended, and how is human oversight maintained?
To address these questions, your compliance program should include mechanisms for monitoring AI usage, auditing AI performance, and training employees on proper and ethical use of AI technology. The DOJ’s message is clear: companies cannot afford to ignore the risks associated with emerging technologies.
Leveraging Data Analytics In Compliance Programs
Another major focus of the ECCP update is the strategic use of data analytics in compliance efforts. The DOJ now expects companies to leverage data analytics tools to enhance their compliance operations and monitor program effectiveness. Prosecutors will evaluate whether compliance personnel have adequate access to data systems and whether the company uses data to improve efficiency and measures outcomes.
Key questions from the ECCP update include:
- Is the company using data analytics to make compliance operations more efficient?
- How does the company ensure the quality and accuracy of its data sources?
- Are there methods in place to measure the performance of data analytics models?
This emphasis on data access and quality means companies must invest in robust data infrastructure and provide the necessary resources for their compliance teams to monitor and respond to potential risks effectively. Compliance staff must be equipped with the tools and training needed to leverage data analytics for proactive risk management.
Why This Matters For Your Business
The DOJ’s updated guidance highlights the increasing complexity of managing compliance in a technology-driven world. Companies must be proactive in understanding and mitigating risks posed by AI and emerging technologies, ensuring that their compliance frameworks are adaptable and robust. Furthermore, businesses that fail to leverage data analytics in their compliance operations may face greater scrutiny.
Practical steps for compliance
- Review and update your compliance policies: Make sure your program addresses AI risks and incorporates data-driven monitoring tools.
- Train your staff: Educate your team on the ethical and compliant use of new technologies, including AI.
- Leverage data analytics: Invest in data systems that enable real-time monitoring and performance assessments of your compliance program.
- Conduct regular audits: Frequently review your AI systems and data practices to ensure compliance and identify areas for improvement.
The Role Of Compliance In A Digital World
The DOJ’s ECCP update underscored the need for companies to adapt to technological advancements while maintaining strong compliance standards. As emerging technologies continue to evolve, organizations must stay vigilant, proactive, and committed to upholding the highest levels of corporate integrity.
If you’re unsure whether your compliance program meets these new DOJ expectations, partnering with a professional employer organization (PEO) like Group Management Services (GMS) can provide clarity and guarantee your business remains compliant.
Contact GMS today to see how we can support your organization in effectively managing compliance risks.