A growing body of research highlights the potential of artificial intelligence to strengthen oversight within financial systems, particularly in emerging market and developing economies. According to a recent study by CEPR, AI tools can enhance regulatory efficiency by analyzing vast datasets to detect risks, identify fraudulent activities, and monitor compliance in real time. These technologies offer supervisory authorities the ability to respond more swiftly to market fluctuations and systemic vulnerabilities. However, successful implementation requires robust data infrastructure, skilled personnel, and clear governance frameworks. The findings suggest that while AI presents transformative opportunities, its integration into financial supervision must be carefully managed to ensure transparency, fairness, and accountability. As these economies modernize their regulatory approaches, AI could play a pivotal role in fostering financial stability.
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AI for financial sector supervision: New evidence from emerging market and developing economies CEPR