Rickard Colliander “Strong, transparent compliance practices differentiate Volvo Cars as a responsible, human-centric company”

Leaders League: What does the expression “compliance as value creation” mean to you, in concrete terms?
Rickard Colliander: To me, “compliance as value creation” means moving beyond seeing compliance as a control function and/or a cost center and instead using it as a strategic enabler for speed, sustainable long-term growth and protection of our strong brand.

Concretely, at Volvo Cars, it means embedding compliance and ethics into how we design products, partnerships and business models ‒ so that we can innovate confidently in areas such as electrification, software-defined vehicles, data-driven services and new distribution models. When compliance is integrated early (“compliance by design”), we reduce rework, avoid delays and accelerate time-to-market. It also creates value by strengthening trust with our key stakeholders, such as customers, business partners, investors and regulators.

In the automotive industry, topics like data privacy, human rights in the supply chain, responsible AI, and trade compliance are increasingly decisive for brand and market access. Strong, transparent practices here are not just protective ‒ they differentiate Volvo Cars as a responsible, human-centric company and are fully aligned with our brand, which has been built on safety and protecting people since 1927.

Internally, it drives better decision-making. Clear policies, a strong speak-up culture, and practical guidance empower our teams to act with confidence, especially under commercial pressure.

Ultimately, compliance as value creation means helping Volvo Cars win in the right way ‒ by reducing risk, enabling innovation and reinforcing our purpose and reputation in a rapidly transforming industry.

What are the main challenges of creating that value in the current business environment?

The main challenge in turning compliance into value today is the sheer pace and complexity of change ‒ both externally and internally.

Globalization and centralization were key strategic themes for many years, but they have increasingly been replaced by regionalization and localization. This shift makes managing a global compliance program significantly more complex.

Externally, the regulatory environment is evolving rapidly across multiple fronts relevant to the automotive industry: data privacy, AI governance, human rights (e.g., CSDDD), supply chain transparency and trade restrictions. Requirements are often fragmented ‒ or even contradictory ‒ across jurisdictions, while expectations from regulators and customers are increasing simultaneously. This creates a moving target, where the risk of misalignment or delayed implementation can slow down innovation and market entry. At the same time, geopolitical volatility and supply chain dependencies add further uncertainty, making it harder to ensure consistent compliance standards across our complex global value chains of suppliers and retail partners.

Internally, the challenge is to integrate compliance seamlessly into business processes without being perceived as slowing things down. This requires shifting mindsets ‒ from “control and approval” to “enablement and guidance” ‒ while still maintaining robustness. It also demands reliable data, clearer ownership and strong cross-functional collaboration.

Finally, compliance resources are not unlimited. Balancing operational demands with transformation efforts ‒ such as AI adoption and embedding “compliance by design” ‒ requires prioritization and disciplined execution.

In essence, the challenge is to keep compliance both rigorous and agile in a fast-moving, resource-constrained environment.

How do you see the development of AI helping to create more value and bridge the resource constraints?

From a compliance & ethics perspective, we see that AI creates value and address resource constraints as well as having significant potential to further drive efficiencies and effectiveness of compliance programs ‒ when applied in a focused and responsible way.

First, AI can enable a step change in efficiency. Routine, time-intensive tasks such as risk scanning, third-party due diligence, policy reviews and monitoring of transactions and data flows can increasingly be automated or augmented. This allows our teams to shift focus from manual control activities to higher-value work ‒ judgment, advisory and business engagement.

Second, AI can strengthen our ability to be proactive and risk-based. Advanced analytics can help us identify patterns, anomalies and emerging risks earlier ‒ whether in supply chains, data usage or third-party interactions. This improves decision-making and allows us to intervene before issues materialize, which is where real value is created.

Third, AI can support better accessibility and integration of compliance. Intelligent tools can embed guidance directly into business workflows ‒ providing real-time, context-specific advice to employees and managers, reducing friction and increasing adoption.

However, realizing this value requires strong governance, as well as patience and resilience. We must ensure responsible AI use aligned with our principles on data privacy, ethics and transparency, while recognizing that not all value will be realized immediately. There will be a transition phase where we need to allow ourselves to experiment, test new tools, and pilot use cases without excessive pressure for immediate results. As in any major transformation, we cannot fully predict the end state or every step along the way ‒ we need to set a clear direction, start moving, and adapt as we learn.

Do you see any risks with using AI in compliance?

Yes, there are risks with using AI in compliance, and managing them effectively is critical to preserving trust and integrity.

Initially, there is a risk of over-reliance and reduced human judgment. AI can process large volumes of data and identify patterns, but it lacks contextual understanding and ethical reasoning. In compliance ‒ where nuance, intent and proportionality matter ‒ human oversight as well as pertinent prompting remain essential. It is easy to be “blown away” by the impressive results AI tools can generate, but when you examine how those results are produced, you sometimes find questionable assumptions or significant areas of uncertainty.

Furthermore, data quality and bias are key concerns. AI systems are only as reliable as both the data they are trained on and the specific input data used in each case. If either is incomplete, biased, outdated or otherwise flawed, the output may be misleading and can lead to incorrect risk signals or unfair outcomes - particularly in areas such as investigations, third-party due diligence, or monitoring. There is also a reputational dimension; misuse of AI or unintended consequences can undermine trust in both the compliance function and the company.

Finally, and it goes without saying, use of AI must comply with existing regulations such as GDPR and emerging AI-specific legislation like the EU AI Act.

What is the most underrated source of value your department creates that the C-suite does not yet see?

One of the most underrated sources of value compliance & ethics professionals create is enabling better, faster and more confident decision-making across the business ‒ often in ways that are not explicitly visible. This value is well captured by the Latin expression “esse, non videri” – to be, rather than to be seen.

By systematically identifying patterns across cases, due diligence, and regulatory developments, we provide early signals that influence strategic choices – such as market entry, supplier selection, or new business models. This prevents issues before they materialize, which rarely gets recognized because “nothing happens.” Because success for a compliance team often means exactly that – no incident, no delay, no reputational damage - this value can easily go unnoticed. Yet it directly protects enterprise value, supports strategic agility, and enables the business to move faster with confidence.

Be that as it may, I am happy to conclude that Volvo Cars’ management is really committed to responsible business conduct and fostering a strong ethical culture within our company. Acting ethically is not only the right thing to do – it is the foundation for value creating business and will help us attract and retain the best talents.