IOSCO maps the rise of SupTech, and AI’s appetite for good data
Financial supervisors are under growing pressure to keep up with the markets they oversee, and many are looking to technology for support.
A new report dives into the technological shift. The International Organization of Securities Commissions (IOSCO) has published its first SupTech Survey, drawing on 49 authorities across every region, and finding that supervisory technology has clearly become an institutional priority. Efficiency and timeliness are the main motivations, with artificial intelligence (AI) the most cited enabler. But even more telling: when asked what actually makes SupTech possible, authorities pointed to data access, and among smaller regulators almost 60% singled out data strategy, which the report casts as a precondition for everything else.
As we might have pointed out once or twice before, an AI model is only as good as the data beneath it, and structured, machine-readable inputs like XBRL are what make supervisory data widely usable in the first place. It is no coincidence that authorities also flagged “black box” opacity and unrepresentative data among their worries: feed an AI patchy information and it hands back patchy answers, only faster and with a misleading air of confidence.
Read the full report here.
