The world’s financial watchdogs have a new problem. The same AI tools making markets faster and more efficient are also making them harder to police. So regulators are doing what any reasonable opponent would do: building their own AI arsenal.
Switzerland’s financial regulator FINMA, led by President Marlene Amstad, is at the tip of the spear. Amstad, who also chairs an IOSCO forum on supervisory technology, told Reuters on June 26 that banks and regulators need to move quickly to address vulnerabilities that AI is amplifying across financial systems.
Fighting fire with fire
The strategy has a name: SupTech, short for supervisory technology.
The IOSCO forum Amstad chairs covers regulators overseeing approximately 95% of global financial markets. When this group decides to adopt AI-powered tools, the ripple effects touch nearly every major exchange, bank, and trading platform on the planet.
