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Eight Insights from my experience at RISK London

Two weeks ago, I chaired the RegTech theatre at the RISK London Expo, one of the premier events in regulatory technology and compliance. With thousands of attendees, over 200 speakers, and more than 100 exhibitors, I had the privilege of introducing 19 sessions across two days. Here are the key insights I gathered:

1. The Growing Sophistication of RegTech Solutions

RegTech companies are making remarkable progress in addressing regulatory complexity. One notable example was FinRegE, a company that has processed over 20 years of regulations from 160 countries, translating everything into English and encoding it within a private Large Language Model (LLM) for enterprise use. The growing sophistication of these tools was impressive.

2. Human Oversight Remains Critical

The EU AI Act mandates human supervision for critical AI systems. Current solutions are designed to present curated content and proposed decisions while maintaining human oversight and judgment. This – hopefully! – represents an evolution in human capabilities, rather than our replacement.

3. AI Assurance Takes Centre Stage

Organisations increasingly need assurance over their AI solutions. Boards, management teams, and operational staff require confidence that their models operate as intended, free from bias and discrimination. This has given rise to AI audit and assurance services, where experts such as BABL.AI are developing sophisticated model interrogation methods.

4. DORA Implementation Is Urgent

The Digital Operational Resilience Act (DORA), effective January 16, 2023, will be enforced from January 17, 2025. Despite questions from the audience about potential delays or amendments, speakers emphasised that implementation is proceeding as planned, with inspections beginning in early 2025. Financial services entities need to act promptly to ensure compliance. If you’re still asking about it, you’re already late.

5. Deepfake Threats Escalate

The sophistication of deepfake technology continues to advance. A recent incident involved a Hong Kong-based employee who was deceived into transferring $25 million after participating in a video conference with what appeared to be the UK-based CFO and colleagues – all created through deepfake manipulation of public video content.

6. Machine-Readable Regulation: A Critical Foundation

Effective RegTech implementation requires machine-readable regulatory guidance. A former FCA employee shared insights about transforming FCA regulations into machine-readable format—a model that other regulators should consider adopting to facilitate compliance in our increasingly complex regulatory landscape.

7. Global Economic Uncertainties

Constance Hunter, Chief Economist at the EIU, presented a compelling analysis of our current political and economic landscape. Key concerns include the declining number of democratic nations globally and an unprecedented number of elections in 2024. While potential positive developments exist – such as US productivity gains or Japanese economic recovery – some countries bridging East and West face significant challenges.

8. Sustainability Software: Beyond Quick Fixes

While emerging sustainability solutions show promise, the market remains immature with significant variations in capabilities and pricing. Together with Marianthe Evalgelidis and Eleanor Demuth, we explored how sustainability software can enhance and accelerate environmental initiatives. However, none of them is a silver bullet – organisations must still invest in fundamental work: analysing materiality, assessing impacts, and implementing carbon footprint reduction strategies.

Conclusion

The inaugural RegTech theatre at RISK London proved to be a significant success, attracting engaged audiences and fostering meaningful discussions about the intersection of technology and regulatory compliance. The event highlighted the rapid advancement of RegTech solutions and the continuing importance of human expertise in navigating our complex regulatory environment. I loved it – I hope to be back!

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