Droit, a technology firm focused on computational law and regulation, today announced the launch of Decision Decoder, a generative AI-powered tool designed to explain regulatory compliance decisions.

Decision Decoder provides context-aware, plain-language explanations for compliance determinations made by its patented Adept platform, according to the release. The Adept platform is used by major financial institutions to operationalize laws, rules and internal policies in real time.

Droit said the platform processes tens of millions of compliance inquiries daily across global markets.

The new tool combines large language models with Droit’s structured regulatory data and expert-curated knowledge models to deliver explanations that are traceable and auditable, according to the release. The company said the approach is designed to ensure accuracy by constraining AI-generated responses to user inputs and Droit’s underlying logic and regulatory sources.

Decision Decoder integrates with Droit’s Logic Viewer, pairing visualized decision trees with AI-generated summaries that explain how specific inputs, rules and regulatory texts led to a given outcome, according to the release. Explanations include citations to the underlying regulations and are contextualized to individual trades or transactions.

Droit said the tool is intended to streamline regulatory review, reduce time spent navigating complex decision trees and lower the risk of misinterpreting regulatory requirements.

“The Decision Decoder combines the explanatory power of generative AI with Droit’s unique decision logic, bringing greater efficiencies to operations and compliance teams worldwide,” Brock Arnason, Droit’s founder and chief executive officer, said in the release.

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