The game has changed dramatically for businesses in the food, supplements and medical device sectors. What was once a relatively predictable compliance landscape has been transformed by artificial intelligence – and many brands are finding themselves dangerously exposed.
The Advertising Standards Authority (ASA), the UK’s independent advertising regulator, has revolutionised its compliance monitoring capabilities through AI adoption. The statistics are staggering: in July 2023, the ASA scanned approximately 100,000 advertisements per month. By November 2024, using AI-powered systems, the ASA was processing over three million ads monthly – a thirty-fold increase in monitoring capacity.
This isn’t just about volume. The ASA’s Active Ad Monitoring system uses sophisticated AI-based filtering to automatically flag potentially non-compliant advertisements to human specialists. What used to slip through the cracks due to sheer scale limitations is now being caught systematically.
The evolving compliance challenge
With regulations becoming increasingly complex, many businesses find themselves navigating unfamiliar territory. The requirements around health claims for food supplements, for instance, can be particularly intricate, with specific authorised claims that must be followed precisely. This complexity has led to unintended compliance gaps, particularly as Amazon partners directly with regulatory bodies to automatically delist products that don’t meet these standards. Once delisted, products can’t return to the platform until they achieve full compliance – meaning lost revenue every single day.
The challenge extends far beyond major platforms. Companies of all sizes are being challenged over unsubstantiated health claims, and facing the regulatory implications. Earlier this year, a coffee company made unauthorised health claims about its ‘adaptogenic’ coffee, and was prosecuted by West Sussex Trading Standards. Such situations are becoming more common as businesses expand their product ranges and enter new markets, often without the regulatory guidance they need to navigate these complex requirements successfully.
The regulatory landscape was previously more forgiving, with manual monitoring systems that had natural limitations. Today’s AI-powered systems represent a fundamental shift in how compliance is monitored and enforced. These systems provide automated detection that continuously scans websites, social media and e-commerce platforms, instantly flagging content that may need review. What once might have gone unnoticed now receives systematic attention from regulatory experts.
The ASA’s technological advancement reflects a broader trend toward more sophisticated regulatory enforcement. The implications are significant, with companies potentially facing improvement notices from Trading Standards, financial penalties, and reputational challenges.
Helping businesses that face compliance challenges is certainly possible through careful review of labels and marketing copy, but getting ahead of these issues offers far greater value for long-term success.
Turning challenge into competitive advantage
While AI-powered monitoring creates new risks, it also creates opportunities for forward-thinking businesses. Companies that prioritise compliance gain significant advantages: compliant brands can enter new territories confidently, knowing their products meet regulatory requirements, while automated compliance checking streamlines the approval process and reduces time-to-market. As competitors struggle with compliance issues, proactive brands can focus on growth and innovation, with early compliance investment preventing costly recalls, fines, and reputation damage.
The AI revolution in compliance monitoring isn’t slowing down – it’s accelerating – and businesses that treat this shift as an operational necessity rather than a regulatory burden will be best positioned for success. Smart brands are already adapting by conducting comprehensive compliance audits of existing products, implementing automated compliance checking systems, working with regulatory experts to ensure ongoing compliance, and training marketing teams on compliant claim-making.
The new reality
AI has fundamentally altered the compliance landscape. The question isn’t whether non-compliant practices will be discovered, it’s when. In this new environment, regulatory compliance transforms from a back-office function into a competitive advantage.
Businesses that embrace this reality and invest in robust compliance frameworks won’t just avoid penalties – they’ll gain the confidence to scale, expand into new markets, and outpace competitors still fighting yesterday’s compliance battles. The AI revolution is here, and the companies that adapt fastest will be the ones that thrive.
