Firms Speed Up Compliance But Confidence Falls - CUBE Survey
KUALA LUMPUR, Nov 5 (Bernama) -- Firms are embedding regulatory change faster than a year ago, but fewer are confident their compliance processes are effective, according to a survey by artificial intelligence (AI)-native regulatory intelligence company CUBE.
CUBE’s Cost of Compliance Report 2026, based on a survey of more than 2,000 senior practitioners in 11 countries, found that 61 per cent of firms now embed regulatory change within a year, up from 26 per cent in 2025. However, only 45 per cent rate their approach as generally or highly effective, down from 59 per cent.
The share of firms tracking more than 100 regulatory developments a month rose to 17 per cent from two per cent in 2025.
The report found that 59 per cent of firms have embedded AI in their core processes or use it at an advanced level, but only 34 per cent are confident they could demonstrate their AI governance to a regulator, and 57 per cent do not yet trust AI outputs for critical decisions.
In a statement, CUBE said demonstrating AI governance is becoming increasingly complex, as regulators in the United States (US), Europe, Asia Pacific and the United Kingdom (UK) take different approaches.
“Speed appears to be outpacing assurance: firms are deploying AI faster than they can govern it and processing regulatory change faster than they can embed it with confidence,” said CUBE Founder and Chief Executive Officer, Ben Richmond.
Almost two-thirds, or 64 per cent, of respondents reported higher compliance costs over the past year, driven mainly by technology investment and AI governance.
The pressure is also affecting senior staff, with 35 per cent saying senior leaders are declining or leaving roles with direct compliance accountability, rising to 47 per cent in India.
CUBE said it recorded 96 enforcement actions against individuals in the first nine months of 2026, by regulators including the US Securities and Exchange Commission, the UK’s Financial Conduct Authority and Hong Kong’s Securities and Futures Commission, with combined penalties of about US$59 million (US$1 = RM4.05).
Despite the pressures, 75 per cent of respondents expect AI to free their teams for higher-value work, and 73 per cent expect it to improve effectiveness.
-- BERNAMA