What is Agentic AI and how it transforms RegTech

What Is RegTech?

Regulatory Technology, or RegTech, is the use of modern technology to streamline and strengthen compliance and risk management. In banking, fintech and crypto, RegTech solutions employ tools like AI, machine learning, big data and analytics to automate tasks such as tracking regulations, generate reports, identify obligations, track controls, perform KYC/AML checks and more. 

By automating these workflows, RegTech helps firms comply efficiently and effectively, reducing manual effort and error. In fact, a research from Juniper predicts that RegTech spending will jump 124% by 2028 as institutions seek real-time monitoring and adaptive systems to keep pace with ever‑changing rules. 

Overall, RegTech is evolving from basic rule‑checking software into intelligent platforms that provide continuous compliance insights, enabling compliance teams to focus on strategy rather than paperwork.

What Is Agentic AI?

“With their supercharged reasoning and execution capabilities, agentic AI systems promise to transform many aspects of human-machine collaboration, especially in areas of work that were previously insulated from AI-led automation [...]. Three of the main benefits will be greater workforce specialization, greater informational trustworthiness, and enhanced innovation.” - Mark Purdy from Harvard Business Review 

Agentic AI (sometimes called autonomous AI) is a new paradigm of artificial intelligence that can act independently rather than just answer questions or generate text. Unlike traditional AI or GenAI (which respond passively to prompts), agentic systems plan, execute multi-step tasks, and adapt to feedback in real time. These AI “agents” can monitor an environment, set goals, and carry out actions much like a human operator. 

Critically, agentic AI features built-in feedback and error-handling: it can detect problems, self-correct, and choose alternate strategies without constant human oversight. Think of traditional RPA or simple GenAI as tools that operate within fixed rules or create content on demand – agentic AI goes further. It learns from experience, continuously optimizes its actions, and integrates data across platforms, making it uniquely suited for complex, dynamic scenarios. In short, agentic AI is an “AI teammate” that autonomously gets things done, whereas earlier AI was largely reactive.

The Notion of Agentic Compliance

Agentic compliance is a future-proof approach developed by Kodex AI, that leverages these AI agents to revolutionize how compliance work is done. Rather than humans tediously sifting through regulation updates or drafting reports, agentic systems automatically scout for relevant rules, summarize them and map obligations to policies.

For example, the Screening agent can continuously scan global regulatory feeds, filter out irrelevant noise, and deliver concise summaries of only the updates that affect a particular business profile. It can do this 24/7, ensuring no critical update is missed and turning what used to be a 20‑hour manual hunt into a 30‑minute review. The Reporting agent generates and sends reports. By embedding reporting templates and audit trails, an agent can produce polished compliance briefings at the click of a button. Because the AI cites all source materials and logs its steps, every output is easily traceable to original sources. 

Moreover, agentic AI boosts productivity by working in real time: it can adapt immediately to new information and even converse interactively in multiple languages to clarify requirements. In practice, this means compliance teams spend far less time on manual data gathering and more on high-value analysis, while accuracy and responsiveness improve dramatically.

Kodex AI exemplifies agentic compliance through a suite of specialized regulatory “agents.” Each agent is an autonomous AI designed for a core compliance function:

Screening Agent: 

This 24/7 regulatory radar continuously monitors global updates. It builds a centralized inventory of regulations, applies AI relevance filters, and auto‑summarizes changes. Instead of flipping through journals or websites, compliance teams get a curated feed of what matters to their profile.

In practice, the Screening Agent has cut a weekly 20‑hour manual information hunt down to about 30 minutes of review, freeing dozens of hours for strategy work.

Reports Agent:

The Regulatory Reporting Agent transforms raw updates into stakeholder-ready reports. It can generate tailored compliance briefs or executive summaries instantly – or on schedule – while keeping a full audit trail of sources. Tasks that once took hours of drafting and proofreading (for example, policy newsletters or regulatory news summaries) are done in minutes. It ensures teams deliver timely, accurate insights without repetitive effort.

Governance Agent: 

Once regulations are analyzed, this agent drives implementation. It automatically derives obligations from new rules and maps controls into a compliance framework or GRC (Governance, Risk, Compliance) system. It helps to identify any gaps between new requirements and existing policies, providing actionable recommendations. By organizing tasks on an interactive dashboard and syncing with workflows, the Governance Agent has helped close compliance gaps 4x faster and cut manual follow‑up work by 80%. In effect, it turns dense legal text into an actionable to-do list, acting as an extension of the compliance team.

Discovery Agent:

Serving as an AI research partner, the Discovery Agent turns fragmented data into comprehensive insight. It builds a dynamic knowledge graph, allowing to track trends over time and across jurisdictions. You can ask it targeted questions (“What are the new data-privacy deadlines in Germany?”), and it cites the relevant legal passages. It even anticipates what a team might need next by suggesting implications of emerging rules. This makes compliance proactive: the organization gains foresight on cross-border trends and possible future risks, rather than merely reacting when problems arise.

Together, Kodex AI’s agents embody agentic compliance: they autonomously scan, summarize, report, map, and execute key regulatory tasks without constant human intervention, while always keeping teams in control of critical decisions

Why It Matters

The shift to agentic AI in RegTech delivers tangible business benefits. Automation of routine compliance tasks frees up to 80%+ of manual effort. Screening updates and generating reports in minutes instead of hours accelerates decision-making. Gaps between new rules and existing controls are spotted much faster, making regulatory risk management proactive. Complete audit trails and source citations mean every AI-generated insight is verifiable, dramatically improving auditability and regulatory confidence. Moreover, Kodex’s domain-trained models reduce “hallucination” risk by design, so teams can trust the AI’s outputs. 

In aggregate, agentic compliance turns a reactive, labor-intensive process into a high-speed strategic advantage. Banks, fintechs and crypto firms can meet evolving rules efficiently, minimize costly errors, and reallocate compliance resources to innovation – all while keeping regulators satisfied. In short, agentic AI is transforming RegTech by making compliance smarter, faster, and more reliable. 

Conclusion:

Agentic AI represents a powerful new chapter for RegTech. By combining Kodex AI’s advanced financial LLMs with autonomous regulatory agents, compliance teams gain a force multiplier: a set of digital assistants that think, act, and self-correct on regulatory tasks. The result is “agentic compliance” – an approach that dramatically accelerates monitoring, reporting and governance, and ultimately lets organizations stay ahead of regulations with minimal manual effort.