8Blockchain and AI in RegTech
The application of AI and blockchain across the financial services industry is without doubt one of the biggest technological trends in recent years. As a result, it is not unexpected to see RegTech start-ups focusing on these emerging technologies to provide better solutions for their clients.
In each case, the inclusion of these emerging technologies finds specific use cases. The chapters in this part provide in-depth details as to how broadly blockchain and AI are used. As a rule of thumb, the development of AI implementations tends to be less widely announced as often the methods underpinning data analytics can provide a competitive advantage. This is to be contrasted with blockchain-based solutions which often requires multi-party involvement and transparency to generate value whether in the context of KYC or provenance. To put it differently, where regulation is often characterized as complex and confusing, blockchain can solve complicated (inter)relations while AI brings clarity to confusing data and meaning.
As with any use of new technology legal questions arise as to the consequences of mistakes. This seems to be particularly true with the application of AI, especially when compliance mistakes are heavily sanctioned. A whole new field regarding AI regulation and liability is developing, including providing regulators with an understanding ...
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