Six Years of GDPR: The Importance of Compliance and How Legal-Grade™ AI Can Help

23 May 2024 | Luminance

Saturday marks the sixth anniversary of the GDPR – the European Union’s strict set of requirements on data privacy and security. Six years later, and this regulation still has a monumental impact on organisations around the world that must meet these standards for processing, storing and sharing data. And of course, new regulation is coming out constantly – from the DORA act across the European Union’s finance sector, to the Federal Trade Commission’s recent ban on non-competes, keeping up with the latest compliance requirements can be a huge task. So, let’s take a look at how Luminance’s AI is helping organisations ensure compliance, quickly and effectively…

Bring Incoming Contracts into Line with Gold Standards

When reviewing incoming contracts, organisations can let Luminance complete a first pass review to ensure compliance with any regulation. Let’s take GDPR as an example: Luminance will compare the incoming contract with an approved template, which includes set criteria for GDPR clauses. Any deviations or missing sections will be flagged, with alternative, acceptable wording suggested instead. This can be substituted in a single click, bringing any incoming third-party contract into line with the GDPR requirements. And with Luminance’s latest addition, Auto Mark-Up, the entire contract can be brought into line with your organisation’s gold standards, including all compliance requirements, with just one click.

Ensure All Executed Contracts Meet Requirements

Meanwhile, Luminance’s AI-powered repository also provides granular analysis of executed contracts, ensuring existing agreements are compliant, without the need to manually trawl through every agreement an organisation has in place. This is particularly helpful when a new regulation comes in that could affect existing agreements. For example, under the new DORA Act, all financial institutions in the EU need to ensure that contracts outsourcing ICT functions meet specific accessibility, integrity and security requirements by January 2025. Luminance can provide immediate insight into an organisation’s entire contractual landscape, flagging any executed documents which deviate from these new standards, for me to take action by amending or terminating these. What’s more, Luminance’s capacity to understand documents at a conceptual level guarantees all bases are covered when it comes to ensuring compliance. In contrast to a basic keyword search, Luminance will flag any reference that could be relevant and need attention, even if it’s conceptually similar rather than a word-for-word match.

Generate Compliant Contracts Automatically

And it doesn’t stop there. Luminance’s customisable contract generation functionality means that businesses can ensure any contract generated meets the relevant compliance requirements, by adjusting their standard template. For example, now that the FTC has banned non-compete clauses, businesses can remove this clause from their standard employment contract. Alternatively, for international or non-US-based organisations, users can simply add the choice in. In fact, they can even set the standard by region, so all US contracts would automatically remove the non-compete clause, whilst other jurisdictions can keep it in.

In the age of digitalisation, traditional manual review methods carry potential risk of missing crucial information, placing organisations in danger of non-compliance. And that’s not to mention the significant cost, time and resource these kinds of manual audits demand. Luminance’s Legal-Grade™ AI takes away a significant chunk of this grunt work with a rapid, thorough review and analysis. From flagging any issues in existing agreements to negotiating new contracts the company is entering into and automatically generating compliant contracts, this brings the entire organisation into line with any new requirements, ensuring no stone is left unturned and helping teams to understand exactly what information is contained within company documents.

To find out how Luminance is helping organisations around the world to stay compliant and meet new requirements, schedule a demo today!