FinregE Research Suggests Five-Point Blueprint to Enable Safe AI Adoption for Financial Regulators

FinregE, the leading global RegTech firm, released a research note designed to help financial regulators safely accelerate their adoption of artificial intelligence.  In a new thought leadership report, CEO Rohini Gupta, outlines a five-point blueprint for “regulator-grade” digital infrastructure, arguing that the key to closing the AI adoption gap lies in structured data rather than advanced models. 

Recent data from the Cambridge Centre for Alternative Finance (CCAF), part of the University of Cambridge’s Judge Business School, quantifies this supervisory gap. While 40% of financial institutions are already scaling or transforming operations with AI, only 2% of global regulators describe themselves as being at the most advanced stage of adoption, with just 18% in the scaling phase.

“To police the algorithms of the future, regulators must first digitise the rules of the present,” Gupta notes. “Our analysis shows that AI is only as good as the infrastructure it sits on top of. “Drawing on FinregE’s experience running AI in production for over eight years in live regulatory environments, we have identified five foundational steps that can unlock capability while maintaining trust.” 

The research note recommends that regulators focus on building a structured digital foundation before deploying advanced AI tools. The five key recommendations are:

• Machine-Readable Rulebooks: Rules must be structured as data rather than documents, allowing systems to interpret regulations programmatically.
• Formal Taxonomy: A mapping of how provisions relate and how obligations trace to the source ensures consistency across jurisdictions.
• Dynamic Public Access: Replacing static PDFs with interfaces that reduce navigation burdens for firms improves compliance efficiency.
• Explainable AI: Applications must be built on structured content to ensure answers are traceable and auditable, mitigating the risk of hallucinations.
• Internal Operational Tooling: Systems should support workflows like consultation analysis and supervision triage to enhance internal efficiency.

Gupta also emphasises that proof-of-concept pilots are not equivalent to production deployment at scale. “FinregE’s platform supports structured, explainable AI grounded in trusted regulatory source content, rather than probabilistic reconstruction,” she adds. “This approach addresses the critical issue of trust, ensuring that tools have been tested in environments where accuracy is non-negotiable.”

“The AI gap is real, but the path to closing it is not another strategy paper or a procurement of off-the-shelf tools,” Gupta concludes. “It requires a partnership with organisations that understand that the future of regulation is not just intelligent, but structured. Investing in this infrastructure compounds value, unlocking AI capability faster than expected while safeguarding legitimacy.” 

Last week the company announced the appointment of Paul Lyon as Chief Marketing & Communications Officer (CMCO), signalling its growth ambitions. He joins the End-to-End Regulatory Operating System in the newly created executive role with a mandate to lead Global Corporate Affairs during a significant phase of growth and market expansion. Most recently, Lyon served as Senior Director, External Communications: Global Branding, Communications & Marketing for Wolters Kluwer. Prior to this he sat on the Board Operations Committee of Daiwa Capital Markets as Executive Director, Europe & Middle East, and Head of Communication & Marketing.

Earlier this year FinregE announced strategic investment from Moody’s Corporation. And in March FinregE issued a statement confirming that it had been selected by the UK’s Financial Conduct Authority (FCA) as the preferred vendor to host and manage its official Handbook Website. “This marks a significant milestone for FinregE, as the company takes on the responsibility for hosting, publishing, and managing content for one of the world’s most respected financial regulators,” FinregE said at the time. “[It brings] alive our shared vision for smarter and more accessible regulation, helping those who rely on the Handbook every day.”