Automotive

Transforming Legal Compliance with Generative AI, reducing costs and accelerating time-to-market

GenAI transforms global risk analysis for digital vehicle services in the Automotive industry

The Challenge

A leading automotive software and technology company works to ensure the legal compliance of its digital vehicle services in nearly 100 countries. This involves navigating a wide range of regulations while delivering innovative, customer-focused solutions. Features like digital keys and backend services require thorough legal evaluations to meet global standards, which can be challenging.

To handle this, our client relies on a skilled team of legal experts who perform manual assessments. While effective, this process is time-consuming and can create bottlenecks, especially as the number of evaluations continues to grow. Low-risk cases often take up significant resources, leaving less time for complex legal issues. The company wanted to make its compliance process more efficient, keep up with development timelines, and maintain its focus on innovation. That’s where our expertise came in, helping them streamline their approach without compromising on quality.

The Approach

Eraneos began collaborating with the company in 2022 by developing a BI dashboard to centralize and visualize global legal requirements. This tool categorized country-specific regulations into archetypes, helping the company better navigate its compliance obligations. While this initial step improved transparency, it became evident that a more sophisticated solution was needed to handle the growing volume and complexity of assessments.

By late 2023, advances in Generative AI technologies created an opportunity to address these challenges in a more comprehensive way. Eraneos worked closely with the client and its legal partners to initiate a proof of concept leveraging state-of-the-art LLMs. The goal was to automate the initial legal risk assessment process. Using a traffic light model – green for compliant, yellow for uncertain, and red for non-compliant – the AI flagged cases for further review. This approach demonstrated that routine assessments could be streamlined, freeing legal experts to focus on more complex issues.

For low-risk “green” cases, it is expected that processing times could decrease by up to 99% thanks to AI-driven analysis, accelerating time-to-market for new features by up to 30%.

Following the proof-of-concept, Eraneos developed a minimum viable product (MVP) within seven months. Using Azure OpenAI services on the company’s cloud infrastructure, the platform provides immediate compliance feedback. To ensure usability, it features a React-based frontend and delivers detailed AI-generated reports. These reports offer transparency and traceability, enabling legal teams to validate recommendations confidently while significantly improving efficiency.

The Results

The AI-powered platform fundamentally transformed the company’s approach to legal compliance, delivering significant improvements in efficiency, cost savings, and scalability. Developers can access compliance assessments, enabling faster decision-making while reducing the reliance on manual legal reviews. For low-risk “green” cases, it is expected that processing times can decrease by up to 99% thanks to AI-driven analysis. These improvements aim to accelerate time-to-market for software updates and new features by 30%, helping the company respond more quickly to customer needs and market demands.

The platform has also enhanced the effectiveness of the company’s legal team. By automating routine assessments, legal experts are anticipated to have more focus on high-risk or complex cases, improving resource allocation and reducing potential errors. Detailed, AI-generated reports provide transparency and traceability, building trust and ensuring legal teams can validate recommendations more efficiently. This streamlined approach is intended to align legal and development workflows more effectively.

Scalability and adaptability further amplify the platform’s value. It is designed to support additional use cases beyond legal compliance, with potential applications in IT operations and other domains. The project has also sparked discussions about scaling opportunities, showcasing the broader relevance of the solution. The project’s achievements have been widely recognized. In 2024, the company and the project team received multiple European Innovation awards.

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