The artificial intelligence in regtech market has witnessed substantial growth, expanding from $1.37 billion in 2023 to $1.89 billion in 2024, reflecting a compound annual growth rate (CAGR) of 37.3%. This growth can be attributed to increasing compliance costs, demand for automation, data explosion, and enhanced risk management.
Anticipated Strong Future Growth
The artificial intelligence in regtech market is expected to continue its rapid expansion, projected to reach $6.64 billion by 2028, with a CAGR of 36.9%. Key drivers for this growth include regulatory reporting requirements, the need for real-time monitoring, advancements in regulatory technology, a focus on customer protection, and cross-border compliance.
For comprehensive insights, explore the detailed sample report: Artificial Intelligence in Regtech Global Market Report.
Growth Driver: Rise in Fraud Detection
The increasing need for fraud detection is a significant growth driver for the AI in regtech market. AI in regtech aids in identifying and preventing fraudulent activities by using advanced algorithms and machine learning techniques to analyze large volumes of data from various sources. This capability provides organizations with powerful tools to detect and prevent fraud, reducing financial losses and safeguarding against regulatory violations.
Major Players and Market Trends
Prominent players in the artificial intelligence in regtech market include:

IBM Watson Financial Services,
White and Case LLP,
Sysxnet Limited,
Trulioo,
Onfido,
ComplyAdvantage,
Behavox Ltd.,
FundApps Ltd.,
Sift Science,
AlgoDynamix,
WorkFusion,
Trunomi,
Elliptic,
Fund Recs,
IdentityMind Global,
Corlytics Ltd.,
Silverfinch Consultancy Pvt Ltd,
Merlon Intelligence,
Open Source Investor Services,
AQMetrics Limited,
Ayasdi, CheckRecipient Limited, and
KYC Exchange Net AG.

Major companies are developing innovative AI RegTech solutions to enhance compliance processes within the financial services industry. These solutions leverage AI and machine learning to automate tasks, improve efficiency, and mitigate risks associated with regulatory compliance.
Market Segments

By Type: Solutions, Services
By Operation Model: Unsupervised Learning, Supervised Learning, Reinforced Learning, Semi-Supervised Learning
By Application: Regulatory Compliance, Risk Management, Financial Crime, Identity Management, Compliance Support, Analytics, Automated Trading

Geographical Insights: North America Leading the Market
North America was the largest region in the AI in regtech market in 2023. Asia-Pacific is expected to be the fastest-growing region during the forecast period, driven by expanding healthcare facilities and increasing awareness of AI’s benefits in regtech.
Artificial Intelligence in Regtech Market Definition
Artificial intelligence in regtech involves applying AI technologies within regulatory technology to improve data governance, business risk, and regulatory compliance.
The main types of AI in regtech are solutions and services. These solutions use AI technologies, such as machine learning, natural language processing (NLP), and data analytics, to enhance regulatory compliance processes within the financial industry. The operation models include unsupervised learning, supervised learning, reinforced learning, and semi-supervised learning, used for regulatory compliance, risk management, financial crime, identity management, compliance support, analytics, and automated trading applications.
Artificial Intelligence in Regtech Global Market Report 2024 from TBRC The report covers:

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Market size data for the forecast period: Historical and Future
Market analysis by region: Asia-Pacific, China, Western Europe, Eastern Europe, North America, USA, South America, Middle East, and Africa
Market analysis by countries: Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA

The report provides comprehensive insights into market size, drivers, trends, major players, competitors’ revenues, market positioning, and growth across geographies. It helps companies gain in-depth insights into opportunities and strategies, enabling them to tap into segments with the highest growth potential.
For more detailed information, refer to The Business Research Company’s Artificial Intelligence in Regtech Global Market Report 2024.
Source: einnews.com
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Denodo has launched Denodo Platform 9.0, integrating advanced artificial intelligence to enhance data delivery intelligence. This new version aims to elevate data management and analytics with AI-driven natural language query support, real-time data for large language models (LLMs), and improved data security features.
The AI in Denodo Platform 9.0 learns from user interactions, offering automated recommendations on the most relevant data based on individual needs. One of its standout features is support for retrieval-augmented generation (RAG), ensuring generative AI applications provide trusted and insightful results by accessing real-time, governed data across the enterprise.
Ryan Fattini, Vice President of Data & Analytics at City Furniture, commented, “Denodo 9.0 is a game-changer. Its self-service data preparation and Generative AI integration empower users of all backgrounds to customize and use datasets effortlessly. The Iceberg and Delta integration enhances analytics, and the advanced security governance and inspection tools improve oversight and compliance.”
The platform’s natural language query functionality allows users to type queries in plain language and receive immediate results with detailed query construction breakdowns. This feature makes data accessible to non-SQL users, broadening the user base. Additionally, the system optimizes data delivery across multiple channels, selecting the fastest methods and reducing costs by saving time. Enhanced security measures are built into the platform by design.
Fern Halper, Vice President and Senior Research Director for advanced analytics at TDWI, noted, “At TDWI, we believe that companies will leverage both physical and logical data architectures to unify their diverse data. Denodo Platform 9.0 supports a data fabric accommodating both approaches, with enhanced AI capabilities improving flexibility for a wider variety of user personas.”
Key functionalities of Denodo Platform 9.0 include:

Natural-Language Query Support: Users can query data using natural language through seamless integration with platforms like ChatGPT and AWS Bedrock, eliminating the need for manual query writing.
New Data-Preparation Wizards: Users of all technical backgrounds can customize datasets quickly, modifying data products without needing support from data teams.
Intelligent Query Recommendations: AI-driven query wizards respond to user activity, streamlining the query process with automatically tailored transformations and dataset filters.
Support for AI-Ready Data: Enterprises can easily incorporate real-time, enterprise-specific data into their generative AI projects.
Improved Developer Experience: Enhanced DevOps support, integrated Scheduler jobs, a new Welcome portal for faster onboarding, and a redesigned data-source panel facilitate easier access and manipulation.
Enhanced MPP-Based Data-Lake Engine: The massively parallel processing-based engine offers simplified configuration, easier integration with Delta and Iceberg tables, and enhanced analytics capabilities.
Advanced Federated Governance: Finer-grained controls improve the management of decentralized data product creation and reuse by different teams.
Enhanced Inspection: Improved tools for inspecting and auditing data-access policies ensure compliance with data-centric regulations.

Alberto Pan, Executive Vice President and Chief Technology Officer at Denodo, expressed his excitement about the release: “Denodo Platform 9.0 brings an unprecedented level of intelligence to data management, creating new opportunities for both business and technical users.”
Pan emphasized that the new AI and data-preparation features, including RAG support, would bring advanced, trusted data analytics to a wider group of users. He also highlighted the platform’s improved MPP and DevOps capabilities, which aim to accelerate data access and provide a faster, more seamless analytics experience across a broader range of use cases.
Source: itbrief.com.au
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It is a transformative era for businesses as technological advancements, particularly in artificial intelligence (AI), increasingly influence every industry, changing how companies operate, manage staffing, and serve customers. In the legal and risk sectors, the ethical and regulatory considerations of AI usage are becoming critical issues.
To assist industry teams in understanding when and how to use AI, addressing regulatory compliance, and more, the Thomson Reuters Future of Professionals report surveyed over 1,200 professionals in legal, risk, tax and accounting, compliance, and global trade fields.
Regulating AI
While the potential benefits of AI in business generate excitement, the focus on regulating AI is intensifying, with calls for businesses to implement usage, privacy, and communication policies. Many professionals worry that unmanaged AI could cause significant harm.
The Future of Professionals report reveals that 67% of surveyed professionals expect AI and Gen AI to profoundly impact their fields within the next five years. For instance, law firms are optimistic about AI’s productivity benefits, such as large-scale data analysis and performing nonbillable administrative tasks more accurately, allowing legal professionals to focus on billable work and recapture revenue lost to inefficiencies. Consequently, many firms and departments are already utilizing AI.
However, the need for regulation to ensure clarity, trust, and risk mitigation is evident. According to the report, 93% of professionals recognize the necessity for regulation, with concerns about AI accuracy and trustworthiness, especially when AI outputs are used as advice without human verification.
There is a growing demand for firms and in-house departments to create and enforce usage, privacy, and communication policies. Moreover, 53% of law firms and 43% of corporate legal departments believe industry-level regulations are necessary to govern the professional ethics of AI.
Regulatory activity is gaining momentum. For example, President Joe Biden’s executive order on October 30, 2023, titled “Executive Order on Safe, Secure, and Trustworthy Artificial Intelligence,” aims to balance AI benefits with potential risks and outlines principles and guidelines for AI development and use in the United States.
For industry professionals, this executive order presents both opportunities and challenges, necessitating advising and representing clients on AI-related legal issues, such as ethics and compliance costs. Additionally, legal professionals will need to integrate AI systems into their own work, like research and analysis.
Several regulatory efforts are underway at federal, state, and international levels, including:

The proposed American Data Protection and Privacy Act at the federal level.
Legislation enacted in nearly a dozen U.S. states and pending in almost a dozen more.
The European Union’s proposed EU AI Act, aiming to provide a regulatory framework for global AI governance.

Navigating the Challenges of Using AI
Effectively managing AI use is a challenge for risk professionals, especially as AI regulations continue to evolve. Many believe AI can enhance productivity and internal efficiencies, but concerns about accuracy and data security remain.
According to the Thomson Reuters report, 66% of professionals believe AI will introduce new challenges, with 25% citing compromised accuracy and 15% data security as their biggest fears. Human intervention is crucial to verify AI outputs, particularly in sensitive or high-stakes matters.
“I believe AI may make people less inclined to be engaged and more reliant on imperfect systems,” warned one survey respondent. “This will require regulation and constant technological change to keep up with AI-related risks.”
Ethical Cases of Using AI
There are concerns that AI’s increasing integration into business might compromise ethics. According to the Thomson Reuters report, one of the top five fears is that AI will “push ethics out of the window.”
To address this concern, it is essential to ensure that AI-generated information and documents are appropriate, accurate, reliable, and ethically permissible. AI is best used to jumpstart processes or reduce time spent on mundane tasks, not as a sole provider of accurate answers or conclusions. Here are some use cases:

Jumpstart Research: AI can provide background information or updates on legislative developments and precedents, helping professionals make more informed, strategic decisions.
Speed Up Document Review: AI can automate document analysis tasks, leading to quicker response times.
Enhance Data Synthesis and Analysis: AI tools can help professionals sort files quickly, improve accuracy, and mitigate risk with expert human oversight.
Speed Up Client Communication: AI can perform preliminary tasks, allowing professionals to add experienced advice faster, meeting client expectations more efficiently.

Navigating the ethical and regulatory issues of AI is challenging as the technology and regulatory landscape evolves. For more insights, explore the Future of Professionals report.
Source: legal.thomsonreuters.com
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