The rise of supervisory cooperation in AI governance

The financial industry has always been at the cutting edge of technological change, and the AI boom will be no different. To harness AI’s potential while also addressing major new risks, regulators must take a cooperative international approach.

© Getty Images / picture alliance / Contributor

The financial sector has long been a front-runner in adopting transformative technologies, from early ATMs to cutting-edge algorithmic trading. This tradition of innovation has long placed the industry at the forefront of navigating the complexities posed by advanced technologies. However, with the rapid evolution of artificial intelligence, the financial sector faces unique challenges. While generative AI offers immense potential for efficiency and innovation, it also complicates human oversight, raising concerns about financial stability and regulatory effectiveness.

Continue reading with one of our memberships:

  • Annual membership

    ✔️ Unlimited access for one year
    ✔️ Renews automatically unless canceled

    $ 250.00 / year

  • Monthly membership

    ✔️ One month of unlimited access
    ✔️ Renews automatically unless canceled

    $ 23.50 / month

Sign in

If you are already a member, sign in to view this post.

Authors

  • Alessandra Perrazzelli is deputy governor of Banca d’Italia, Italy’s central bank, and a visiting professor at the Politecnico University in Milan. She is a member of the Joint Directorate of the Insurance Supervisory Authority (IVASS) and a member of the European Central Bank’s Single Supervisory Mechanism (SSM) Supervisory Board. Ms. Perrazzelli was previously manager for Italy at Barclay’s Bank, among other roles, and began her career as an attorney in New York and Brussels.

    View all posts

  • Oscar Borgogno is a research officer at Banca d’Italia and a senior fellow at George Washington University’s Competition & Innovation Lab. He is admitted to the Italian Bar. He obtained a PhD at the University of Turin and a MSc in Law and Finance a the University of Oxford.

    View all posts

Related Posts