As financial institutions adopt AI, the pressure on compliance teams is shifting from interpreting regulation to ensuring it works in practice. Meeting that challenge requires more than updated policies and stronger controls. It demands a rethink of how compliance is built into the technology, processes and decisions that underpin financial services.

Regulatory obligations have traditionally been managed through a combination of human judgement, established procedures and periodic reviews. Yet these methods face growing pressure as financial services become more interconnected and automated. Firms must find ways to embed regulatory requirements into day-to-day operations, respond to change without losing control and provide evidence that their systems are working as intended.

In a new four-part RegTech Analyst Series, the focus shifts onto The Architecture of Compliance: Rebuilding RegTech for the AI era. This series examines compliance in the AI age, and what firms need to be paying attention to.

In the second part of a two-part series of part one we speak to leading industry individuals to gauge their views.

A key question standing out for many in the financial world is whether compliance is becoming a tech function.

In the view of Karavel CEO Pedro Sousa, something has definitely changed in compliance team meetings.

He elaborated, “For most of the profession’s history, the job asked for a well-understood set of skills: knowledge of regulation, the ability to deal with regulatory ambiguity, sound judgement, the ability to measure risk, and the communication skills to explain all of it to the business. Those still matter.

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