Regulators are increasingly becoming gatekeepers for AI adoption in finance, facing a dual role of being transformed by AI while deciding its integration pace. The speed of financial regulation, particularly concerning virtual assets and tokenization, is identified as a key bottleneck. Supervisors must develop new technologies for real-time monitoring and programmable compliance, as the infrastructure built for virtual assets is expected to influence mainstream finance within a decade. AI is poised to significantly accelerate regulatory processes, compressing review times and reducing false positives, with a medium-term wave expected to shift towards continuous data exchange and shrink compliance functions within financial institutions. AI
IMPACT AI's integration into finance is bottlenecked by regulatory speed, necessitating new supervisory technologies for real-time monitoring and compliance.
RANK_REASON The item is an opinion piece by the CEO of a regulatory authority discussing the impact of AI on financial regulation.
- Bank for International Settlements
- Bank of England
- Financial Conduct Authority
- Hong Kong Monetary Authority
- McKinsey
- Monetary Authority of Singapore
- Project Agorá
- Thomson Reuters
- Virtual Assets Regulatory Authority
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