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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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【導入案例】維繫遊艇王國美譽 嘉信遊艇導入國內第一套FRP複材超音波智慧檢測
Maintaining the reputation of the “Kingdom of Yachts” - Kha Shing Enterprise introduces the first domestic FRP ultrasonic smart inspection of composite materials

The Kaohsiung-based Kha Shing Enterprise Co, Ltd was established over 40 years ago, and is Taiwan's largest customized yacht company with customers all over America, Europe, Asia, and Australia, earning Taiwan the reputation of the "Kingdom of Yachts" Current FRP hull inspection still relies on traditional methods, such as visual inspection and knocking sounds, which is time-consuming and labor-intensive Kha Shing has applied PAUT array ultrasonic inspection to hull FRP composite materials for the first time, and combined it with AI to interpret ultrasound images, develop complete intelligent solutions, and create emerging markets for inspection companies Kha Shing Enterprise Co, Ltd was formerly Kha Shing Wood Industry Co, Ltd, and was a factory specializing in wood import in Kaohsiung Linhai Industrial Park when it was first established It began to design, manufacture, and sell yachts in 1977 After the second-generation successor of the company, President Kung Chun-Hao entered the company, he made a breakthrough in the previous manufacturing model that relied mainly on the skills of master craftsmen, introduced digital manufacturing to accelerate shipbuilding, and began to make larger yachts, ranking in the top 20 manufacturers worldwide among manufacturers of large yachts over 24 feet It also set a record of delivering 94 yachts within one year, earning Taiwan the reputation of "Kingdom of Yachts" Defect detection ensures yacht quality, using AI to replace humans to achieve higher efficiency Defect detection is very important to ensuring yacht quality At present, the yacht industry still uses very traditional defect detection methods The hull structure is usually made by hand lay-up or the vacuum infusion process, using visual inspection or knocking and the frequency of the sound to determine defects It requires time-consuming manual inspection If there are any defects, they must be reworked and repaired, and a gel coat subsequently sprayed The hull must be constructed in sections to facilitate inspection For large yachts over 24 meters long, construction in sections is very time-consuming and labor-intensive To shorten the time of the yacht manufacturing process, Kha Shing Enterprise will first carry out the gel coating process for the hull, and then perform the hand lay-on process The hull manufacturing process has two types of composite material test specimen structures In terms of 54-foot yacht hulls, the hull contains gel coat, core material, fiber and resin, and the total thickness is about 32cmplusmn01cm, which is twice the total thickness of FRP hull without core material of about 16cmplusmn01cm Defects such as incomplete impregnation of glass fiber or residual air bubbles between glass fiber and resin occasionally occur during the manufacturing process The types of defects include insufficient resin, voids, and delamination Once defects occur, the supply of hull materials will be insufficient and yacht delivery will be delayed Schematic diagram of types of FRP hull In order to solve this problem, Kha Shing Enterprise has engaged in technical cooperated with the metal materials industry and the AI technology industry, combining the ultrasonic inspection expertise of the metal materials industry with AI technologies developed by the AI technology industry in recent years to help solve issues of Kha Shing Enterprise with defect detection The method uses PAUT on the composite material structure of yachts, conducts FRP ultrasonic evaluation to determine the thickness of the yacht hull and material properties, and evaluates the ultrasonic probe frequency applicable to the hull structure based on professional ultrasonic experience After testing, a frequency of 5MHz and a probe width of 45mm can successfully find the location and size of defects in the simulated defect test specimen The three parties jointly found defect detection solutions from array ultrasonic evaluation, AI technology model development, and actual application in yachts The image inspected is an ultrasound image The image displays different colors based on the ultrasonic feedback signal An AI model that automatically identifies defective parts is established through the YOLO algorithm If the amount of abnormal data collected is insufficient for training, the CNN-based Autoencoder algorithm is used to collect normal image data for training and construct an AI model for abnormality detection The object detection YOLO model is trained by inputting image data marked as having defects, while the abnormality detection model is trained by inputting image data without defects Simulated defective specimen corresponding to PAUT results Defect detection by and AI system can shorten the construction period by 15 months and speed up determination by 50 After the development of this AI system is completed, it will be validated on actual 54-foot yachts of Kha Shing Enterprise, and can effectively resolve issues with defects The application of AI technology in ultrasonic inspection for intelligent determination is expected to accelerate determination by approximately 50, and will also shortens the construction period by 15 months, effectively improving the speed and quality of the yacht manufacturing process As Taiwan develops larger and more refined yachts, it will create opportunities for industry optimization and transformation, as well as opportunities for the development of key technologies The application of an AI ultrasonic inspection solution for composite materials is the first of its kind in the yacht industry, and is expected to attract more yacht manufacturers with inspection needs The AI ultrasonic inspection solution for composite materials has three major competitive advantages 1 Professional inspection experience and digital database to facilitate process management and analysis 2 Automatic AI determination and identification quickly identifies defects and provides immediate feedback to process engineers 3 High-efficiency process inspection provides defect repair recommendations, reduces damage rate, and improves the strength and quality of composite materials The application of AI technology can optimize the yacht manufacturing process, reduce manual inspection, create added value through the application of AI in Taiwanrsquos yacht industry, increase international purchase orders, and allow Taiwan yachts to continue to enjoy a good reputation in the world Furthermore, this business model has also spread to fields of application related to composite materials, increasing cross-sector market usage It is estimated to contribute approximately NT14 to NT2 billion in economic benefits to Taiwan's equipment maintenance and non-destructive testing market

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Testing Seat Contact Components AI Intelligent Flaw Detection

With rapid development in 5G, AIOT, automotive electronics, and other downstream sectors, the entire supply chain is expected to benefit from this consumer market As product demand momentum gradually increases, increasing production efficiency and reducing operational costs become the most important issues In order to meet the needs of customers for various packaging types, Yingwei Technology has been committed to developing highly customized test seats However, a resulting pain point is the inability to mass-produce and fully automate operations with machines some tasks still rely on manual execution In this project, the probe part of the test seat was outsourced in 2021, and under current and future large-scale demands, work hours, costs, supply, and quality are issues Yingwei faces The company achieves a defect detection rate of 9995, which seems high, but with an average inspector able to inspect 10,000 needles per day, there would still be 5 defective needles On a test seat that is only 3 cm wide with approximately 1,000 needles, just one defective needle could potentially lead to faulty testing at the customer end As the current operational mode relies on manual visual inspection, external factors such as fatigue or oversight of personnel, and subjective judgment by inspectors may lead to the outflow of defective products, which necessitates strict quality control of contact components We once sought to utilize optical inspections Rule-based for controlling the quality of appearances, but the metallic material of the contact components leads to light scattering, background noise interference, background scratches, and material issues that could result in misjudgments Therefore, we decided to look for AI technology service providers to solve our detection difficulties Developments of Dedicated AOI Line Scan Equipment To meet the needs for inspecting thousands to tens of thousands of probes within our company's IC test seats, traditional surface imaging and individual needle imaging would be too slow to achieve rapid inspection and labor-saving goals In response, the service provider proposed a trial with an AOI dedicated line scan module solution Utilizing a width of 63mm on the X-axis for reciprocal scanning of all probes on the test seat, the tests allowed for the simultaneous scanning of 8-9 probes, significantly enhancing the future detection efficiency of AOI machines This project will proceed with the aforementioned innovative Proof of Concept POC, focusing on the development of the line scanning equipment and performing imaging, learning, and training on both normal and abnormal probes provided by our company, with initial AI model training aimed at preliminary approval This project's customized line-scan imaging module Ideal future imaging result illustration A Single AI Technology Solution for MeasurementDetection Needs Unified use of AI DL CNN learning methods, instead of the current Rule-based system which necessitates defining each defect individually, to meet the needs for abrasion measurement and appearance defect detection of malfunctionsforeign objects When the same machine uses both measurement and detection technologies, not only does it increase costs, but it also affects the detection speed Hence, the service provider recommends the use of a line scan device for imaging Its resolution is sufficient for AI to simultaneously determine appearance defects and assess the condition of needle tip abrasion, as detailed below Line scan pixel imaging displaying needle tip abrasion conditions This AI detection technology meets both measurement and inspection needs for Yingwei, not only bringing more benefits to future probe testing but also introducing an innovative axis in AI technology Change the method of human inspection, enhance work efficiency and product quality After combining both hardware line scan and software AI model training approaches, we successfully ventured into new AOI detection applications Following the AI implementation POC, including the development and validation of a customized line scan module and an initial AI model, the plan is to officially develop the AOI machine next year and integrate it into the IC test seat production line Future Prospects Probe manufacturers upstream and downstream IC factory users both have needs for the AOI inspection machine upstream can ensure probe quality before leaving the factory, while downstream users can use this machine to regularly inspect the condition of numerous IC test seats in hand Given the future demands, the AOI machine is poised to have a significant positive impact on the IC testing industry in the foreseeable future 「Translated content is generated by ChatGPT and is for reference only Translation date:2024-12-12」

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Using Plant Growth Chambers as an Example - Standardizing Electronic Device Procedures Based on Imaging

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incorporating artificial intelligence, more scientific evaluation standards can be established, optimizing production processes, improving yield and quality, while reducing energy consumption and environmental impact Additionally, such smart solutions can attract more young people to participate in agricultural production, promoting industry upgrading and sustainable development Overall, the demand for smart agricultural solutions stems from the urgent requirements to address climate change, enhance production efficiency, reduce costs, and achieve precise management, and this is exactly the problem companies like Taiwan's HaiBoTe are striving to solve Taiwan's plant factory operators are facing a series of severe challenges, which are gradually eroding their competitiveness and survival space Firstly, the high cost of equipment and operations is their biggest burden Each electricity bill feels like a heavy blow, forcing them to balance between ensuring product quality and controlling costs Secondly, the unpredictability brought by climate change has become their nightmare Sudden extreme weather events can destroy their carefully nurtured crops in a short time, causing massive economic losses What's worse, they find themselves increasingly at a disadvantage in international market competition In contrast, large overseas plant factories, with their advanced automation technology and well-organized supply chains, can produce stable-quality agricultural products at lower costs, putting unprecedented pressure on Taiwan's operators On the technical level, they also face numerous challenges Compatibility issues between new and old equipment often put them in a bind, encountering various technical obstacles when trying to integrate different systems Lack of precise data analysis and forecasting capabilities also makes it difficult for them to make production decisions and accurately determine the best growth conditions for each crop Existing monitoring systems provide data that is often disorganized, difficult to interpret and apply Human resource challenges are also severe, with young people generally lacking interest in agricultural work, making it difficult for them to recruit employees with modern agricultural skills Even existing employees often feel exhausted from tedious manual operations and monitoring tasks These problems are intertwined, creating a complex dilemma that leaves plant factory operators confused and anxious They urgently need a comprehensive solution that can enhance factory operational efficiency, reduce costs, and improve product competitiveness, helping them overcome difficulties and regain their footing in the fierce market competition In facing the various challenges of plant factory operators, Taiwan's HaiBoTe company has demonstrated exceptional technical innovation and a flexible customer-oriented development strategy They deeply understand that the solution must be able to seamlessly integrate existing equipment while 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HaiBoTe's developed smart agriculture solution not only brought revolutionary changes to plant factories but also painted an encouraging picture for the future of the entire agricultural industry The excellence of this system is evident in several aspects firstly, it achieves precise control of the plant growth environment, significantly improving crop yield and quality stability Through advanced artificial intelligence algorithms, the system can forecast and adjust optimum growth conditions based on historical data and real-time monitoring information, ensuring each plant grows in the ideal environment Secondly, it significantly reduces energy consumption and operational costs, improving resource efficiency The intelligent management system optimizes water, electricity, and nutrient supply, reducing waste and lowering manpower costs Additionally, the system's modular design and strong compatibility allow it to seamlessly integrate various new and old equipment, providing a flexible solution for gradual upgrades of plant factories Most importantly, the system injects a sense of technology and modernity into agricultural production, helping to attract the younger generation to the field and injecting new vitality into the industry Looking ahead, HaiBoTe's smart agriculture system has broad application prospects and expansion potential In addition to plant factories, this system can also be applied to traditional greenhouse cultivation, urban agriculture, and even home gardening In the field of aquaculture, similar technology can be used to monitor and optimize the breeding environments for fish or shrimp In the food processing industry, similar intelligent monitoring and forecasting systems can be used to optimize production processes and enhance food safety Even in the pharmaceutical industry, this type of precise environmental management system could be applied to drug research and production processes To further promote this system, HaiBoTe could adopt a 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technology empowering agriculture 「Translated content is generated by ChatGPT and is for reference only Translation date:2024-12-09」