There is some indication that supervisors have begun to explore the use of such AI-powered tools. But a June 2024 report by the Financial Stability Institute (FSI), investigating the adoption of supervisory technology — or “SupTech” — confirms that, while many supervisory authorities have deployed such tools, few have embedded them into day-to-day supervisory processes.1
The report identifies a core tension: although AI and machine learning tools are widely seen as promising, their impact remains uneven — often constrained by issues of usability, integration, and trust. The most effective tools, it notes, are those that fit seamlessly into existing supervisory workflows, to address well-defined pain points. Current supervisory approaches to questions of culture do not fit this mold. “Supervisors will likely be less open to a suptech tool that creates another process or additional steps in the existing process,” the paper warns.
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