In today’s regulatory environment, compliance-focused organizations face mounting pressure to process and evaluate vast volumes of policy documents quickly, accurately, and transparently. Manual review processes are often slow, error-prone, and difficult to audit; creating significant risk for organizations seeking scalability and accountability. To address this challenge, Karma Advisory partnered with the client to design and implement an AI-driven automation solution that streamlined compliance evaluation at scale.

The Business Challenge

The client, a compliance-focused global organization, needed to automate the review of thousands of policy documents. Their manual process was time-consuming, inconsistent, and lacked traceability; making it unsuitable for scaling or audit.

The Solution & Implementation

• Conducted user interviews and reviewed historical reports to formalize evaluation logic

• Developed an AI agent powered by Azure OpenAI with Retrieval-Augmented Generation (RAG)

• Designed a configuration-driven scoring engine aligned to compliance rubrics

• Stored document embeddings in Milvus DB to enable fast, high-accuracy vector retrieval

• Implemented secure Azure-based deployment with access controls

• Enabled agent-driven answers, scoring, and structured output from unstructured PDF content

The Result

• 80% reduction in manual effort

• Consistent and objective scoring replacing manual interpretation

• Auditable evaluation trail enabled longitudinal insights

• Significant cost and time savings

Key Implementation Techniques

• Preprocessing unstructured PDFs to remove noise (headers, TOCs, etc.)

• Page-wise chunking strategy to support varied document formats

• Semantic vector search tuning using Milvus DB for optimized recall

• Advanced prompt engineering: few-shot, chain-of-thought, self-consistency

• Image analysis using LLM multimodal capabilities

Conclusion

Through this collaboration, the client transformed compliance document review from a resource-intensive, manual task into a streamlined, automated workflow. The AI-driven system not only reduced operational burden and increased accuracy but also delivered transparency and auditability that were previously unattainable. This solution demonstrates the value of combining advanced AI techniques with practical implementation strategies; empowering organizations to meet regulatory demands with efficiency, confidence, and scalability.