Artificial intelligence is no longer a distant concept for regulators — it’s rapidly becoming the engine driving a new era of real-time supervision. For decades, oversight relied on periodic check-ups, quarterly filings, and resource-heavy audits that often surfaced problems only after they’d taken root. But that world is changing fast. AI now gives regulators the ability to monitor risks as they emerge, anticipate failures before they occur, and work with banks in a far more proactive and collaborative way. In this episode, Mark Rothwell-Brooks explores how continuous data flows, predictive analytics, automated compliance, and intelligent communication tools are reshaping the traditional supervisory relationship.

But innovation always brings tension. Greater visibility creates questions about privacy, model bias, transparency, and the widening gap between tech-ready institutions and those being left behind. We’ll unpack not just the opportunities but also the pitfalls — and examine what this shift means for banks, regulators, and the future stability of the financial system. If AI is implemented well, it could usher in a safer, smarter, and more resilient era for global banking. If it’s mishandled, it could create entirely new risks. Let’s break down the possibilities, the challenges, and the emerging reality of AI-driven regulation.