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【2020 Application Example】 The Lawsnote compliance system uses AI technology to automate the compliance risk assessment (CRA) process and improve the compliance efficiency of companies

Trends in financial regulation

As the world pays greater attention to regulatory supervision, various fields are facing increasing compliance costs. If we were to ask what was the fastest growing field in 2020? I believe many people will think it is regulation!

The trend of strict supervision has been the most severe in the financial industry. Supervisory agencies In Taiwan, including the Financial Supervisory Commission, have imposed growingly strict supervision requirements on the financial industry, as well as heavier fines. In response to these supervisory measures, the financial industry gradually implemented new internal control and internal audit systems for compliance a few years ago, such as the assessment of regulatory risks, business units appointing compliance managers as the first line of defense, and compliance self-assessment system.

Current manual compliance process of compliance personnel

However, there is a plethora of financial-related laws and regulations, and business units have a large number of complex business manuals. Therefore, many compliance personnel of financial institutions must spend a lot of time on tedious and highly repetitive comparisons of internal and external regulations, in order to help companies avoid risks or fines due to not proposing response measures in their internal regulations when laws are amended.

Compliance staff spent a lot of time processing Changes in laws

▲Compliance personnel spend a lot of time dealing with regulatory changes

Lawsnote Compliance System Solution

As Taiwan's leading legal technology solutions provider, Lawsnote received many requests from corporate customers for a compliance system, and began to look into solutions for applying AI to compliance systems. It thus developed the Lawsnote RegTech compliance system for compliance personnel to automate parts of their work process, reducing the tedious and repetitive work of compliance personnel.

Lawsnote will adjust legal changes and internal regulations Automation

▲Lawsnote automates regulatory changes and internal regulatory adjustments

A Regulatory database, search, and notification of regulatory changes

As the basis of the RegTech system, the compliance process is triggered by "regulations", so it is necessary to have a "complete" and "real-time" regulatory database and regulatory update mechanism for specific fields.

However, regulations are not limited to "laws" enacted by the Legislative Yuan, but also include "administrative rules" and "legal orders" enacted by administrative agencies authorized by law, as well as "administrative interpretations" used to interpret regulations. These are all considered regulations that the compliance system must comply with.

There is currently no unified data source for these regulatory data. Except for the Laws & Regulations Database of the Republic of China (Taiwan), many regulations are scattered on independent webpages for regulations on the websites of different agencies, organizations, or associations, making the cost of collecting complete regulations very high.

Since laws and regulations will be amended, new administrative letters and interpretations will be issued or old ones abolished, updating regulatory changes is also a big problem. Even if complete laws and regulations are collected once, failure to continuously monitor changes in laws, regulations, and administrative letters and interpretations will also create a gap in compliance.

As a professional legal search engine, Lawsnote has a complete database of regulations and interpretations, and can send notices of regulatory changes required by various fields in response to the needs of compliance systems.

B1. Internal regulations database and search

Internal management by companies through regulations are called "internal regulations." General types of internal regulations include company internal regulations, standard operating procedures (SOPs), and business instruction manuals. Depending on the intensity of industry-specific supervision, the number and density of company internal regulations will vary depending on the industry.

In industries with high supervisory density, the number of internal regulations sometimes reaches thousands or even tens of thousands. With such a huge number of internal regulations, paper or simple filing systems can no longer meet the internal needs of enterprises. The process of searching for and complying with internal regulations might require a significant amount of time and personnel costs if an internal regulations database and search engine are not establish.

Lawsnote has Taiwan's most powerful legal information search engine, patent search technology, and uses AI to optimize its sorting algorithm. It can establish an "internal regulations database"for internal data, such as company internal regulations, SOPs, and instruction manuals, and applies search engine technology to the internal regulations database, achieving a fast, complete, and easy-to-use internal regulations database and search engine.

B2. <Regulations – Internal Regulations> Article-to-Article Linking Mechanism

When regulations are revised, the company's internal regulations must also be inspected and adjusted accordingly.

The company's internal regulation inspection procedures may be initiated by compliance personnel based on regulatory amendments, or may be initiated by the compliance officer of the business unit (the first line of defense), and then reviewed by compliance personnel (the second line of defense). However, regardless of which unit initiates it, the difficulty lies in finding the article of internal regulations that correspond to the amended article of the law to determine whether amendments are necessary.

Due to the large number of internal regulations, complicated terms, and the different forms of business involved, if internal regulations must be reviewed every time laws and regulations are revised, it will consume a huge amount of time. Therefore, compliance personnel usually rely heavily on experience and aim to minimize risk within limited time.

Moreover, due to the way internal regulations are written, often using different methods to significantly rewrite and break down laws and regulations, making comparison very difficult for programs. If the existing program is used to compare internal and external regulations, many internal regulations cannot be effectively determined.

After research and testing, Lawsnote designed 3 AI algorithms and 4 rule-base algorithms for cross-comparison, which can establish article-to-article links between thousands of regulations and company internal regulations, helping compliance personnel to immediately determine the necessity of revisions to internal regulations when regulations are revised, significantly saving review time and reducing compliance and internal control risks.

C. Internal control and internal audit self-assessment process for compliance

In order to ensure that the compliance officer of business units properly carry out the compliance process, some companies will implement mechanisms such as compliance self-assessment and compliance education, and require the compliance officer of business units to conduct self-assessment of internal control and internal audit processes and review existing risks.

Compliance personnel or auditors must summarize self-assessment results, or prepare a risk matrix to monitor compliance risks and track vulnerabilities.

The Lawsnote RegTech compliance system supports expanded workflow solutions, which can extend the workflow to the compliance self-assessment process, customize the integration of the current system and compliance system, and merge the organizational structure and SSO permission control mechanism to create a one-stop compliance system.

Three core modules of Lawsnote legal compliance system Group

▲Three core modules of the Lawsnote compliance system

Incorporates foreign regulations and is the number one compliance tool for companies

Lawsnote will continue to optimize regulatory text parsing and identification technology. In addition, we will also develop other legal technology application tools and become the number one compliance tool for enterprises with all-inclusive services. In addition to domestic regulations, Lawsnote will also incorporate foreign regulations into the system, so that multinational companies in Taiwan can access information on domestic and foreign regulations.

Lawsnote has always focused on AI applications, data mining, algorithm design, search engines, and workflow optimization in the legal field, and is committed to saving the time of legal professionals through technology.

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【解決方案】搭上綠能商機 華鉬實業打造全釩液流電池儲能系統設備 長效儲能的最佳選擇
Taking advantage of green energy business opportunities, Hua Molybdenum Industry creates all-vanadium redox flow battery energy storage system equipment, the best choice for long-term energy storage

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battery electrolyte and wind turbine AI predictive operation and maintenance, providing 100 safety, long-term efficiency and reducing customer initial manufacturing costs cost-effective power energy storage equipment, and through AI predictive operation and maintenance services to help customers reduce power generation costs by 10 and save up to 30 in maintenance and warranty costs Hua Molybdenum Industry was established in 1998 The industry started by refining vanadium, molybdenum and rare metal elements and other products, and used them in high-end steel, professional chemicals and specialty chemicals industries, and vanadium is more like a steel-making Vitamins can increase the effectiveness of steelmaking Among them, vanadium and molybdenum related products are one of the company's main projects The company sees that the all-vanadium redox flow battery, which is 100 vanadium-based, will be a very promising mainstream green energy technology in terms of long-term energy storage in the future, and before 2010 The government has actively invited legal entities such as the Industrial Research Institute to conduct research on related component materials in solid-state batteries and all-vanadium batteries In addition, the Ministry of Economic Affairs expects renewable energy to account for 20 of power generation in 2025 and reach 15GW Based on the above Considering this, Hua Molybdenum Industry decided to devote all its efforts to research and invest in the technological development of self-developed all-vanadium redox flow battery electrolyte in 2017, in order to accelerate the compliance rate of renewable energy in 2025 Hua Molybdenum pointed out that "renewable energy power is relatively unstable, and Taiwan itself lacks lithium resources In lithium battery manufacturing, almost 80-90 of battery cells must rely on foreign procurement, and there is a lack of 100 domestic self-sufficient energy storage Resources and technology "Similarly, how does Taiwan overcome the problem of having no natural vanadium resources To this end, Hua Molybdenum Industry uses original technology to use waste catalysts from petrochemical industries such as CNPC refineries or Taishuo petrochemical processes Up to 10 of the vanadium ion content can be used to extract high-value vanadium resources, thereby producing Taiwan's 100 self-made all-vanadium redox flow battery electrolyte without being affected by resources, effectively achieving resource recycling Since 2017, Hua Molybdenum Industrial has successfully created all-vanadium flow electrolyte technology, and has successfully passed product verification by the Industrial Research Institute, the Nuclear Research Institute and many international manufacturers Taiwan’s power storage energy target is to reach 15GW in 2025 Its power distribution includes 500MW in Taipower’s automatic frequency regulation system, 500MW in E-dReg and 500MW in existing or newly built solar power plants For example, electricity consumption is mainly between 4 pm and 10 pm, which is the peak period for people's daily electricity consumption For this reason, the Energy Administration specifically requires Taipower to strengthen the upgrade of energy storage equipment, which has also driven the market's interest in all-vanadium redox flow batteries Energy storage system equipment is in high demand In addition, Taiwan's current total power reserve construction and contribution has not yet reached 100MW, and the gap from the 2025 target of 15GW of power storage is still more than 15 times Using all-vanadium redox flow batteries to successfully create 100 safe, low-carbon, environmentally friendly and long-lasting energy storage system equipment Compared with the short-term power storage of lithium batteries, the biggest advantage of all-vanadium redox flow batteries is that it is globally recognized as a long-term power reserve It can store energy for a long time up to 12 hours, which means that if it is charged for 12 hours, It can release power for 12 hours Compared with the electricity measurement method of general energy storage systems, which is daily electricity consumption power in kilowatts x time in hours, for all-vanadium redox flow batteries, power and hours are different Special design, the power is also called a stack, which is composed of four materials metal, polymer mold, carbon felt and graphite plate, and the power consumption time is calculated based on the amount of electrolyte in cubes Therefore, when the power electric push x the amount of electrolyte the daily electricity consumption of our all-vanadium redox flow battery for energy storage The product features of the all-vanadium redox flow battery energy storage system equipment include four major features safety, long-term performance, not easy to decay during charging and discharging, and sustainable, low-carbon and environmentally friendly The quality of the all-vanadium flow battery is 100 safe Since the electric energy is stored in the vanadium-containing electrolyte, it can avoid any flammable accidents caused by a fully charged energy storage system In terms of battery life, compared to the short battery life of lithium batteries, all-vanadium redox flow batteries can have a battery life of more than 20-25 years through changes in price Regarding the charge and discharge performance of energy storage, unlike lithium batteries which have a certain number of charge and discharge times 5000-600 times, there is no limit to the number of charge and discharge times of all-vanadium redox flow batteries Regarding zero carbon emissions, which is highly valued globally, unlike lithium batteries which have recycling issues, the electrolyte of the all-vanadium redox flow battery can be used permanently The material components of the stack are environmentally friendly and fully recyclable to create a truly sustainable and low-cost Carbon-friendly energy storage system Onshore wind turbine AI prediction smart operation and maintenance allows customers to reduce power generation costs by 10 and save maintenance and warranty costs by up to 30 Hua Molybdenum Industry not only improves the long-term power storage efficiency of renewable energy customers through all-vanadium redox flow battery energy storage system equipment and helps customers reduce initial purchase costs, but also uses AI smart operation and maintenance empirical calculations for offshore and onshore wind turbines Field demonstrations were drawn on Taipower's onshore wind farm, and we actively accumulated our own technical experience and energy in AI predictive operation and maintenance With the support of the AI HUB project of the Industrial Bureau of the Ministry of Economic Affairs, the cooperation site will focus on the Phase I wind farm of Taipower Corporation and provide smart operation data of wind turbines for more than 6 months for analysis The AI predictive operation and maintenance system for onshore wind turbines uses machine learning The main technology provider comes from ONYX Insight, a subsidiary of British Petroleum BP The company uses AI Hub analysis software technology to analyze the wind turbines faced by Taipower Pain point analysis, including power generation loss of road-based wind turbines and damage prediction of key components of land-based wind turbines such as gearboxes, pitch bearings under abnormal vibration three-dimensional vibration frequency or abnormal temperature, etc output Through this implementation, it can effectively help Taipower reduce power generation costs by 10, increase asset value by 12, and save up to 30 in maintenance and warranty costs In the past three years, ONYX Insight has successfully predicted and operated more than 20,000 offshore or onshore wind turbines around the world, accumulating extremely high AI model accuracy It is believed that the international partnership established with ONYX Insight will effectively guide and accelerate the green energy division of Hua Molybdenum Industry in its goal and layout to become an independent technology service provider for wind turbine AI predictive operation and maintenance Works with partner ONYX insight to provide customers with an AI predictive operation and maintenance system, including wind turbine power generation loss and damage prediction of key wind turbine components Building a solid foundation for domestic wind turbine operation and maintenance, using Taiwan as a base to expand to Southeast Asian wind farms The market output value of offshore wind turbine AI predictive operation and maintenance in Taiwan will exceed NT30 billion in the future, and the energy storage market has an output value of more than 100 billion US dollars globally In the future company vision, Hua Molybdenum Industrial hopes to become An independent technical service provider for vanadium flow battery electrolyte and wind turbine AI predictive operation and maintenance The long-term goal is to establish a local supply chain of vanadium flow battery electrolytes around the world by accumulating abundant technology and performance capital to supply industry needs nearby 「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」

【導入案例】AI嘛會煮咖啡 無人烘豆機靠AI 精準設點與培養忠實客群
AI Can Make Coffee! Autonomous Coffee Roasters Relying on AI for Precise Location Setting and Cultivating Loyal Customers

Have you had your morning coffee yet Over the past decade, Taiwan has gradually formed a coffee drinking culture With the advancement of AI technology, autonomous coffee roasters can now rely on AI for precise location setting while also cultivating a loyal customer base Let's see how this is done According to the International Coffee Organization ICO, Taiwanese consume approximately 285 billion cups of coffee annually, with the coffee market in Taiwan estimated at 80 billion TWD, growing about 20 each year In recent years, the 'drinking coffee' culture in Taiwan has become synonymous with popularity, with coffee being the most frequently chosen daily beverage by 65 of the population Coffee enthusiasts, particularly the more avid ones, are willing to pay more for coffee beans that suit their tastes An increasing number of unmanned drink kiosks have also begun to appear in the Taiwanese beverage market Unmanned coffee beverage shops face difficulties in expanding quickly, primarily due to two major issues one is the appropriateness of customer flow and machine placement locations which still rely on manual analysis the second is penetrating the market of mid to high-end coffee lovers accurately AI resolves two major challenges for autonomous coffee roasters suitable placement and cultivating a loyal customer base To tackle these issues and help autonomous coffee roasters quickly break into the market, Raysharp Electronics intends to implement AI for people flow counting analysis and unfamiliar face recognition These technologies aim to calculate the crowd size at potential roaster locations and classify consumers by gender and age for more precise market analysis They also provide multiple choices for the roasting of raw coffee beans, offering a more customized service tailored to the needs and tastes of professional coffee aficionados with a pack of 'high-quality roasted beans' Since 2018, the rise of unmanned stores has been mainly due to owners wanting to reduce persistently rising rent and personnel costs However, the initial assessment of store locations still requires hourly labor expenses for manual estimation of customer flow, leading to possible miscalculations of both on-site consumers and passerby traffic These inaccuracies may prevent precise real-time analysis of customer flow, or even misguided estimations of operational efficacy after a trial run, thus missing the optimal timing for loss-preventing location retraction Raysharp Electronics introduces autonomous coffee roasters equipped with AI-based people counting analysis and facial recognition Raysharp Electronics combines AI people counting analysis and facial recognition with the coffee trend known as 'black gold', addressing the preferences of numerous coffee connoisseurs in Taiwan who enjoy personally selecting coffee beans at bulk stores and frequenting high-quality grinding cafes or chain coffee shops A new concept for the first autonomous coffee roaster offering choices based on the origin, variety, and roasting methods of coffee beans has emerged AI coffee roasters enhance customer loyalty and materials management efficiency by 20 For the advanced development of autonomous coffee roasters, Raysharp Electronics engineers have equipped the AI NVIDIA development platform on the basis of TCNNFacenet Through AI, tens of thousands of images related to gender and age are used for sample training, allowing even first-time coffee roasting customers to be easily classified using unfamiliar face recognition This gains consumer trust, enhances willingness to use, and allows for recording purchase information and future product recommendations, leading to consumer purchase behavior analysis This information helps owners tailor future material preparation based on consumer preferences for different coffee beans, reducing raw material transportation and storage issues, and improving material management efficiency by 20 Moreover, by placing these autonomous coffee roasters in high-traffic areas, owners can use cameras to capture the crowd and assess whether the machine location has an adequate customer base, quickly analyzing whether to reposition the machines, and more easily targeting the best locations for middle and high-end coffee lovers The unmanned coffee roaster features a professional roasting mode interface, providing options based on the origin and variety of coffee beans, their roasting methods light, medium, deep, and related temperature, wind speed, and timing settings If improvement needs arise during the process, engineers can adjust firmware parameters and also assist in integration with the owner's ordering system Staff members briefly describe the operation of the autonomous coffee roaster 'Black Gold' penetrates deeper into coffee shops, science parks, and commercial buildings through AI This autonomous coffee roaster targets coffee connoisseurs and can be placed in middle to high-end coffee shops to roast more customized coffee beans than those available in bulk stores Upon completing a batch of coffee beans, it immediately provides them to professional technicians within the coffee shops for grinding and manual brewing The remaining roasted beans can also be taken home for brewing and enjoyment It also adds value to coffee shops by better understanding consumer preferences for coffee beans and launching more customer-attracting drink promotions and appropriate inventory management In addition to coffee shops, the autonomous coffee roaster can also utilize AI-based people counting analysis to precisely set up near scientific parks and commercial buildings, offering high-quality coffee beans for office brewing to internal employees with high coffee consumption needs Furthermore, implementing a physical membership system can initiate coffee bean purchase promotions or periodic payment incentives, thus attracting new clients and cultivating existing customer loyalty and retention The operation interface of the smart autonomous coffee roaster「Translated content is generated by ChatGPT and is for reference only Translation date:2024-05-19」