AI and Big Data for Cross-Border Financial Compliance
Keywords:
AI Regulatory Compliance Monitoring, Artificial Intelligence Governance Frameworks, Large Language Models (LLMs), Generative AI Oversight, Global AI Deployment Regulation, Risk-Based AI Supervision, AI Development and Deployment Controls, Regulatory Technology (RegTech) for AI, Automated AI System Auditing, AI Data ComplianceAbstract
2025 promises to become an inflection point in regulatory compliance monitoring. AI technologies, both application and feature engineering techniques, such as Large Language (LLM) and Generative AI, are currently receiving an unprecedented level of attention from regulators worldwide. These technologies now face the imminent prospect of deployment regulation globally. AI solutions are expected to impact nearly every domain of economic activity. Yet, the proportion of AI systems subjected to regulatory oversight remains small. Fashioning a balanced regulatory regime that ensures that the risks of AI systems are recognized and managed is a pressing coordination task. Growing off-the-shelf modular capabilities will necessitate a focus on AI development, deployment, and use by private sector actors beyond the large enterprises.
The research conducted by Niyato et al. is informed by the view that, if successful, these measures, together with focused support for the development of AI technologies that address national priorities and international obligations, will enable Canada to seize the opportunities presented by AI while also mitigating the risks. AI regulatory compliance represents a step toward actual monitoring of AI systems to ensure that those systems – and the data fed into those systems – are compliant with expectations and controls stipulated by regulators across the globe in their respective AI regulatory frameworks. Such monitoring should help maintain both the regulated domains of society and the integrity of the operated AI systems. AI technologies have been used extensively to automate software testing for evaluation. Organizations building such monitoring capabilities can be expected to operate the function of regulatory compliance as a managed service, with the potential to offer such services as an end product to other organizations.
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