AI for Chemical Regulations: Reducing Risk & Ensuring Compliance

By
Jacqueline Wasem
Chemical Compliance and Regulatory Solutions

Chemical regulations are evolving faster than ever, with increasing restrictions on PFAS, regional compliance complexities like California's Proposition 65, and global sustainability initiatives.

Chemical companies must navigate these challenges while ensuring compliance and operational efficiency. Generative AI (GenAI) is emerging as a game-changer in automating compliance workflows, reducing risk, and keeping businesses ahead of regulatory shifts.

Let’s look at some GenAI regulatory workflows that help chemical companies stay efficient and compliant. 

AI Applications in Chemical Compliance: How GenAI Automates Regulatory Workflows

Navigating chemical regulations is a major challenge for sales reps, especially when recommending products to customers in highly regulated industries. With evolving standards like PFAS restrictions, EU REACH classifications, and California Prop 65, a product that’s compliant in one region might be restricted or even banned in another.

Sales teams need real-time regulatory insights to ensure they are offering compliant solutions while avoiding legal risks and delays. However, manually tracking these regulations across different markets is complex and time-consuming

Here are some examples and applications for how sales reps can benefit from GenAI-powered compliance workflows:

1. PFAS Compliance

Restrictions on PFAS (polyfluoroalkyl substances — also known as “forever chemicals”) are an important concern for many companies right now. The Environmental Protection Agency (EPA) continues to roll out new safety measures for harmful PFAS, which impact every aspect of chemicals from product formulation to sales initiatives.

GenAI can be used to analyze product formulations against the latest PFAS regulations, flagging potential compounds or safety issues before they become compliance violations.

2. Proposition 65 in California

California's Prop 65 requires businesses to provide warnings about significant exposures to chemicals that cause cancer, birth defects, or other reproductive harm.

GenAI workflows can scan large product databases and compare them with Prop 65 lists to ensure all necessary warnings are in place or find alternative products with similar properties.

3. Product Portfolio Analysis

With evolving chemical regulations like PFAS bans, EU REACH updates, and CLP reclassifications, chemical companies must proactively monitor their product portfolios.

Chemical commercial teams can leverage GenAI to automate portfolio analysis, flagging regulatory risks in specfic global markets and suggesting reformulation strategies or alternate products before products become non-compliant.

Additionally, GenAI can guide technical sales representatives as they discuss alternative solutions to customers looking to stay compliant. 

4. Regional Compliance Mapping

By analyzing product data against regulatory requirements in different regions, GenAI tools can generate compliance maps for each product across various markets that sales reps cover. This enables more strategic decision-making for global sales and distribution while giving sales reps confidence in their sales strategies.

How GenAI Improves Compliance Workflows: A Step-by-Step Guide

At Nesh, we help chemical sales teams accelerate deal cycles while leveraging GenAI workflows that address the impacts of complex regulatory requirements.

The Nesh Sales AI platform enables companies and their sales reps to  better understand how a product meets their customer's compliance requirements using workflows like:

  1. Policy & Process Query: GenAI “agents” deliver insights into your organization's internal policies, procedures, and processes. This is an important first step because managing compliance starts from within.
  2. Regulations Query: Here, the system gathers insights about regulatory information and requirements that impact a product, industry, or region, keeping your team up to date with all the latest changes.
  3. Standards Query: This phase collects insights on standards, codes, recognized guidelines, and operational practices from industry associations so that you can confirm your products meet not just legal requirements but also industry best practices.
  4. Compliance Check: Finally, the system reviews your compliance status, identifying discrepancies or gaps that may need more attention.

How AI-Powered Compliance Works: Key Steps in a GenAI Regulatory Workflow

The power of GenAI for chemical regulatory compliance is in its ability to process and analyze vast amounts of data quickly — and accurately. Here are some examples of how it works in practice.

  • Document Scanning: The system scans product documentation and regulatory requirements. Data includes tech specifications, formulations, sell sheets, safety data sheets, and more.
  • Comparative Analysis: GenAI solutions like Nesh compare the product information against regulatory requirements, flagging potential issues.
  • Risk Assessment: The system categorizes risk level and compliance status by color: 
    • Red — there’s an issue
    • Yellow — needs review
    • Green — all clear. This risk categorization enables teams to prioritize compliance-related actions.
  • Continuous Monitoring: As regulations change, the system updates its database and re-assesses compliance status so that there’s ongoing adherence to standards.

With PFAS regulations being the big focus right now, real-time adaptation is crucial. Non-compliance can lead to significant legal and financial repercussions. GenAI saves companies time by automating updates and cross-checking many detailed standards. Sales reps are able to communicate how products meet regional standards and build trust during complex sales cycles.

Let's analyze the personal care sector. Ingredients might be banned in specific regions but allowed in others. Regulations can vary widely depending on location, which becomes tricky for international suppliers. 

GenAI workflows can track these regional variations, ensuring product formulations comply with local regulations before entering new markets. This safeguards customers from costly recalls and reputation damage.

The Future of Regulatory Compliance With GenAI

The future of regulatory compliance in the chemical industry is being reshaped by Generative AI. As regulations grow more complex and region-specific, companies must adopt intelligent, automated workflows to stay ahead. GenAI is no longer just an emerging tool — it’s quickly becoming the new standard for ensuring real-time compliance, reducing risk, and streamlining regulatory approvals.

By leveraging AI-driven insights, companies can proactively adapt to evolving regulations, optimize product formulations, and maintain global market access without disruption. A multiscale approach — where AI evaluates compliance risks from molecular structures to supply chain implications — ensures that even the smallest chemical modifications align with industry-wide requirements.

As AI continues to advance, its role in regulatory intelligence, risk assessment, and compliance automation will be essential for chemical companies looking to navigate the future with confidence.

Level Up Your Regulatory Workflows: Nesh GenAI for Chemical Companies 

Non-compliance can lead to severe consequences, from exorbitant fines to sudden market exclusion. Chemical companies that leverage GenAI for regulatory workflows reap protective advantages:

  • Stay ahead of regulatory changes
  • Ensure consistent compliance across global operations
  • Reduce the risk of non-compliance and associated penalties
  • Accelerate product development and market entry processes
  • Support company innovation and manufacturing 
  • Enhance overall operational efficiency

As the regulatory landscape quickly changes, so must your approach to compliance. Nesh GenAI for chemical teams is a specialized platform that helps you navigate this complex terrain while building the agility and precision your company needs to thrive.

Don’t let evolving regulations put your business at risk. Nesh’s AI-powered compliance solution helps chemical companies automate regulatory workflows, ensure global compliance, and reduce penalties. Request a demo today to see how GenAI can protect your business and accelerate compliance processes.

Want to learn about more about how chemical and advanced manufacturing companies can leverage generative AI? Check out our Ultimate Guide to AI in Chemicals.

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