US SEC's decision to overhaul rules for the $20 trillion private fund industry sparks demand for compliance; bankers are open to generative AI

Good morning and Happy Monday!?We hope you had a nice weekend.?

One of the key topics of this week's edition of the RegTech X digest is the increasing role of compliance.?

As the Financial Times report, private equity, venture capital, and hedge fund groups are bracing themselves to allocate substantial budgets, amounting to billions of dollars, towards compliance and legal functions.

This financial commitment is in response to the monumental regulatory shifts that are poised to impact the industry, marking the most significant changes since the repercussions of the 2008 crisis.

Another topic that continues to attract attention is generative AI in banking and compliance. At the Finovate event, bankers expressed cautious opinions about cutting-edge AI, particularly the generative AI that's been on everyone's mind: OpenAI's ChatGPT. However, they are open to the technology's potential.

For instance, executives at Citizens Financial Group and community banks such as Seattle Bank and Citizens Bank of Edmond say there are potential use cases for large language models.

Artificial intelligence is rapidly transforming the way businesses operate. There is virtually nowhere in the workspace you can go either, without generative AI dominating conversations from the board to the break room.

The Conference Board survey of nearly 1,100 U.S. workers, predominantly office workers, found that while 56% of people are using these tools, only 26% say their employer has a policy related to the use of generative AI.?

As AI becomes more pervasive, it is essential for organizations to have a strong AI governance program in place to mitigate risks while capitalizing on value. On September 19th, Riskonnect is organizing a webcast on how to build a responsible, compliant, and ethical AI program.

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Have a great week!