AI to Assist Italian Regulator in Monitoring Financial Markets

The Italian Securities and Exchange Commission (CONSOB) is testing artificial intelligence to approve prospectuses and detect insider trading, according to Reuters.

“These algorithms can assist in conducting preliminary analyses to identify instances of insider trading, followed by targeted investigative actions,” stated representatives of the regulator.

The algorithm requires three seconds to detect an error, whereas an expert would need at least 20 minutes, noted CONSOB. 

Last year, the agency tested two prototypes developed in 2022 in collaboration with the Scuola Normale Superiore university and also developed a third model. The next step will be integrating AI into the regulator’s workflows. 

The integration of this new solution is expected to enhance the quality of oversight and the detection of violations. 

In March, the EU adopted the world’s first set of key rules for regulating artificial intelligence.