AI Inches Further into Regulatory Use

Aussie regulators recently dipped a cautious toe into using artificial intelligence for regulatory purposes — specifically using natural language processing technology to detect when financial institutions are engaged in possible misconduct. The technology will scrutinize promotional material and advertisements, among other things, to see if they contain falsities or if they breach any rules. While much of the talk around AI in financial services that grabs headlines tends to be around consumer-facing applications such as chatbots and personal assistants, we believe both financial firms and regulators will use it more for the purpose of ensuring and monitoring compliance.