ADGM’s Financial Services Regulatory Authority launches its AI initiative on Open Regulation

ADGM’s Financial Services Regulatory Authority launches its AI initiative on Open Regulation

Abu Dhabi, UAE: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has launched an initiative to foster the development of intelligent regulatory technology (RegTech) tools and help Artificial Intelligence (AI) achieve regulatory context and understanding, thereby unlocking the potential of AI in the field of regulatory compliance.

Hosted in the ADGM GitHub repository, the Open Regulation (OpenReg) initiative provides a “training ground” where industry specialists, RegTech companies and the data science community have access to FSRA’s AI models, data and research to create AI-enabled RegTech tools.

Financial services firms are increasingly relying on AI applications and machine-learning techniques in their day-to-day processes and decision making. One area that can be difficult to automate is regulatory compliance, as it can be highly cognitive and contextual. Any incomplete information or misinterpretation of a rule could lead to inappropriate business decisions, improper risk management and control, or possible regulatory breaches. Understandably, firms are reluctant to deploy AI in regulatory compliance and instead rely on in-house or outsourced specialists for compliance assurance through manual processes. This creates inefficiencies and increases the cost of being regulated.

Without regulatory context, AI applications will be limited in their potential to help financial services firms navigate the