Starting with the basics: a stocktake of gen AI applications in supervision

Highlights

• Many financial authorities are already experimenting with, developing or using generative artificial intelligence (gen AI) applications for supervision purposes.
• Financial authorities seek to leverage the new technology to find information more efficiently, but their gen AI activities are hampered by outdated information technology (IT) infrastructure, data security concerns and a lack of technical skills.
• Most of the reported gen AI applications in supervision can be grouped into three categories: (i) basic document processing; (ii) knowledge management; and (iii) document review. Most "in use" applications fall into the first category; development work is spread out across the three categories; and experiments are concentrated in the second and third categories.
• The main challenges identified in integrating gen AI applications in supervision are user acceptance and inaccuracies in information provided. These challenges will likely intensify as financial authorities move to more complex gen AI use cases.