Name: Regulatory Compliance Solutions in Finance – Pros, Cons, Cogs
Start: 2026-06-30T12:00:00+02:00
End: 2026-06-30T14:00:00+02:00

AI Lecture Series: Lecture 8

The Faculty of Law, Economics and Finance, in collaboration with the Interdisciplinary Centre for Security, Reliability and Trust (SnT) and the National Centre of Excellence in Research and Innovation (NCER FutureFinTech) is pleased to invite you, as part of the AI Lecture Series, to this lecture.

Abstract

Using AI for streamlining regulatory compliance solutions in financial organisations: the pros, the cons and other cogs

As financial markets become increasingly digital, globally interconnected and heavily regulated within and across jurisdictions, financial institutions are looking towards Artificial Intelligence (AI) to strengthen regulatory compliance capabilities. This lecture will explore how AI-enabled tools can be used to develop, test and maintain compliance solutions across regulated finance, including banking, trading venues, clearing and settlement systems, payment infrastructures and RegTech platforms.

Drawing on industry practices, this lecture will explore potential cases of AI use in compliance environments, these include: AI-assisted development, AI-assisted rule mapping, automated coverage analysis, regulatory change management and conformance automation frameworks. If implemented efficiently, AI-enabled compliance architectures can help connect regulatory obligations, internal rule books, testing artefacts and audit evidence into continuously traceable systems.

The session will analyse the main benefits of AI adoption in compliance functions, including faster delivery, quicker interpretation of regulatory texts, automation of repetitive control activities, improved monitoring and reporting, scalability across jurisdictions, enhanced fraud and anomaly detection and more adaptive governance processes. AI can also help organisations reduce operational burden and improve responsiveness to rapidly evolving regulations such as DORA, MiFID II, Reg SCI and AML/KYC obligations.

At the same time, the lecture will critically evaluate the limitations and risks associated with the use of AI in regulated finance. These include model opacity (“black box” decision-making), explainability challenges, hallucinations in generative AI systems, data privacy concerns, bias in automated decisions, cybersecurity vulnerabilities, vendor concentration risk and difficulties in establishing deterministic audit trails for probabilistic AI models. Regulatory bodies increasingly emphasise that accountability for compliance cannot be delegated to AI systems or external vendors – which calls for strong governance, human oversight and robust validation frameworks.

The lecture will conclude by discussing emerging heuristics for efficient AI adoption in financial compliance, including “human-in-the-loop” governance, use of explainable AI, model risk management, traceability-by-design and continuous testing methodologies. Students will gain insight into how financial institutions can balance innovation with operational resilience, accountability and regulatory trust in an era of accelerating AI adoption.

About the speaker

Iosif Itkin is a co-founder & co-CEO of Exactpro, an independent provider of software testing services for financial sector organisations. Among other things Iosif is responsible for the AI Testing strategy and trading systems reliability research. He holds a MSc degree in Theoretical Physics.