The role of Root Cause Analysis (RCA) in complaints management is well established. By identifying systemic drivers of complaints, firms can not only improve customer outcomes but also enhance operational efficiency and align more effectively with regulatory expectations. However, RCA remains a complex challenge: prone to subjectivity, inconsistency, and resourcing limitations that prevent firms from fully realising its potential.
Recognising this, Simplify Consulting, a leading Wealth Management consultancy, has undertaken an in-depth exploration of AI-powered RCA in collaboration with CourtCorrect. Their findings, published in the white paper “Follow the Golden Thread: Elevating Complaints RCA,” offer an in-depth perspective on how AI can transform RCA from a retrospective compliance task into a real-time, proactive tool for continuous improvement.
The results? Clear validation that AI is transforming how firms identify systemic issues, prevent future complaints, and meet regulatory expectations with greater accuracy, efficiency, and insight than ever before.
The RCA Problem: Where Traditional Approaches Can Fall Short
Root Cause Analysis is fundamental to effective complaints management. It underpins firms’ ability to identify patterns, reduce repeat complaints, and improve customer outcomes. But in its current form, RCA can often be inconsistent, resource-intensive, and slow.
Simplify Consulting’s Research Highlights These Common RCA Challenges:
Scalability Issues: Most firms can only conduct deep RCA on a small subset of complaints due to time and resource constraints.
Bias and Subjectivity: RCA can be heavily skewed towards a limited set of reasons (e.g., “delay” or “human error”), often failing to uncover deeper systemic issues.
Delayed Insights: RCA is often treated as a retrospective exercise, meaning firms may only realise an issue exists weeks or months after complaints have already surged.
Missed Preventative Actions: Many firms focus on categorising complaints rather than implementing meaningful, data-driven fixes to prevent recurrence.
These challenges highlight the urgent need for automation, precision, and objectivity - capabilities AI delivers at scale.
AI as the Solution: Why Our RCA Module Stands Out
Simplify Consulting’s research demonstrates that AI is more than a nice-to-have in complaints management. Their evaluation of CourtCorrect’s AI-powered RCA module highlights why firms should embrace AI-driven RCA at a time when FCA Consumer Duty regulations demand firms take proactive, data-backed action to improve customer outcomes.
AI as an Enabler of Effective RCA
Simplify’s research identifies CourtCorrect’s AI-powered RCA module as a case study in how technology can address many of these long-standing issues. Their findings highlight several key advantages of AI-driven RCA:
Consistency and Accuracy at Scale
By leveraging AI, RCA can be applied systematically across all complaints, rather than a select few. CourtCorrect’s models achieve over 90% accuracy in predictive categorisation, mitigating human bias and ensuring more precise and actionable root cause identification.
Efficiency Without Compromising Depth
Traditional RCA processes are labour-intensive, requiring extensive manual review of case files. AI, by contrast, can process vast complaint datasets in real time, identifying patterns and trends that might otherwise be overlooked. Simplify’s evaluation notes that firms using AI-powered RCA see a significant reduction in time spent on case resolution, without sacrificing analytical depth.
Beyond Categorisation: Understanding Systemic Issues
One of the key takeaways from Simplify’s research is that AI-driven RCA does not simply categorise complaints—it identifies trends and underlying causes that might be invisible to human reviewers. Rather than relying on predefined categories alone, AI can detect emerging risks, outliers, and correlations across different complaint types, supporting firms in taking pre-emptive action.
Aligning RCA with Regulatory and Business Strategy
The introduction of FCA Consumer Duty places greater expectations on firms to demonstrate proactive and data-driven RCA practices. Simplify’s findings suggest that AI-powered RCA provides a clear mechanism for firms to meet these expectations, not only by enhancing the robustness and transparency of RCA insights but also by supporting data-driven decision-making at both operational and strategic levels.
Technology as a Strategic Asset in Complaints Handling
While regulatory alignment remains a key driver, Simplify’s research also highlights a broader shift: AI-powered RCA is not just about compliance: it’s about operational effectiveness and customer-centricity.
Firms that integrate AI-driven RCA can:
Identify and address root causes earlier, reducing the likelihood of repeat complaints.
Make data-driven adjustments to products, services, and communication strategies.
Reduce the operational burden of complaints handling while improving outcome quality.
Gain greater insight into customer behaviours and vulnerabilities, ensuring fairer, more tailored responses.
“Follow the Golden Thread: Elevating Complaints RCA,” also emphasises the need for technology to work in tandem with people, processes, and culture. AI is not a substitute for human judgment but a tool that enhances decision-making, improves efficiency, and expands analytical capabilities.
The Future of RCA: A Data-Driven, AI-Powered Approach
Simplify Consulting’s research provides an objective perspective on the evolving role of AI in complaints handling. Their assessment of CourtCorrect’s RCA module highlights how AI can support firms in overcoming long-standing challenges, while also unlocking new opportunities for proactive service improvement.
As financial services firms continue to adapt to heightened regulatory expectations, evolving customer needs, and increasing complaint volumes, the ability to conduct accurate, efficient, and strategic RCA will become ever more critical. The insights from this collaboration reinforce the view that AI will play a defining role in shaping the next generation of complaints management.
Joint Podcast with Simplify Consulting and M&G Wealth
Our Founder and CEO Ludwig Bull was also invited to explore the findings of the white paper in a podcast discussion with Simplify Consulting’s Dominic House and Nina Cherry, alongside Heather Curtis, Director of Wealth Operations and Customer Services for M&G Wealth.
The discussion examined the practical applications of AI in RCA, considering how firms can move beyond manual, retrospective analysis to a proactive, insight-led approach. Key themes included AI’s ability to reduce bias, improve accuracy, and enhance trend analysis, ensuring RCA serves as a strategic tool rather than a compliance obligation.
Access the Full Research
For a more detailed exploration of Simplify Consulting’s findings, you can:
Read and Download the White Paper Here
Listen to the Expert-led Podcast Discussion Here
If your firm is ready to experience the game-changing impact of AI-powered RCA, get in touch with us at hello@courtcorrect.com to see how CourtCorrect can transform your complaints handling strategy.
With thanks to Nina Cherry, Dominic House, and Richard Shearwood for making our collaboration possible: we’re excited for what the future holds!
Justice for All,
The CourtCorrect Team