ADGM’s Financial Services Regulatory Authority launches its AI initiative on Open Regulation
- The Initiative will tap the innovation community in the co-creation of AI models and applications to achieve better regulatory outcomes
Abu Dhabi, UAE, 29 November 2022: The Financial Services Regulatory Authority (FSRA) of Abu Dhabi Global Market (ADGM) has launched an initiative to foster the development of intelligent regulatory technology (RegTech) tools and help Artificial Intelligence (AI) achieve regulatory context and understanding, thereby unlocking the potential of AI in the field of regulatory compliance.
Hosted in the ADGM GitHub repository, the Open Regulation (OpenReg) initiative provides a “training ground” where industry specialists, RegTech companies and the data science community have access to FSRA’s AI models, data and research to create AI-enabled RegTech tools.
Financial services firms are increasingly relying on AI applications and machine-learning techniques in their day-to-day processes and decision making. One area that can be difficult to automate is regulatory compliance, as it can be highly cognitive and contextual. Any incomplete information or misinterpretation of a rule could lead to inappropriate business decisions, improper risk management and control, or possible regulatory breaches. Understandably, firms are reluctant to deploy AI in regulatory compliance and instead rely on in-house or outsourced specialists for compliance assurance through manual processes. This creates inefficiencies and increases the cost of being regulated.
Without regulatory context, AI applications will be limited in their potential to help financial services firms navigate the regulatory landscape. In this regard, OpenReg provides the regulatory context required by firms to develop their own AI solutions. The OpenReg initiative builds on the foundation of FSRA’s earlier project on Digital Regulation, by providing interested stakeholders an opportunity to engage with us on the further evolution of this important RegTech innovation.
Accordingly, the FSRA invites the industry, RegTech companies and data science community to use the AI training ground to build the next generation of AI-enabled RegTech solutions.
In conjunction, the FSRA and the Mohamed Bin Zayed University of Artificial Intelligence (MBZUAI) are working on a collaboration to leverage OpenReg and the university’s deep AI expertise to accelerate the adoption of AI in financial regulation. One specific area of interest relates to the development of programmable compliance in smart contracts to harness the potential of decentralised finance.
Commenting on this initiative, Mr Emmanuel Givanakis, CEO of the ADGM FSRA said: “This is the first time a regulator has tried to provide regulatory context in the form of machine-readable regulations and AI models. By working with the industry and developer community and providing access to the underlying data that we used to create our own AI model, we are looking toward building smarter AI and RegTech solutions, that make financial regulation simpler, clearer, and more effective”.
For access to the OpenReg repository and to work with us on this initiative please email firstname.lastname@example.org.
About Abu Dhabi Global Market (ADGM)
Abu Dhabi Global Market (ADGM), the international financial centre (IFC) of the capital city of the United Arab Emirates opened for business on 21st October 2015. ADGM augments Abu Dhabi’s position as a leading financial centre and a business hub serving as a strategic link between the growing economies of the Middle East, Africa and South Asia and the rest of the world.
Operating within an international regulatory framework based on direct application of the English Common Law, ADGM governs the entirety of Al Maryah Island, which is designated as the financial free zone of Abu Dhabi.
ADGM is ranked as one of the top IFCs in the Middle East and Africa region and is considered MENA’s largest Fintech hub. With a progressive and inclusive business ecosystem, ADGM enables global financial and non-financial institutions to leverage synergies between itself and multiple jurisdictions, thereby positioning it as one of the world’s most advanced, diverse and progressively governed financial hubs.
For more details on ADGM, please visit www.adgm.com or follow us on Twitter and Instagram: @adglobalmarket and LinkedIn: @Abu Dhabi Global Market (ADGM)