Transition to AI-augmented decision-making in financial supervision. Case study in Qatar Financial Centre Regulatory Authority

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Volume Title

School of Business | Master's thesis

Date

2024

Major/Subject

Mcode

Degree programme

Business analytics

Language

en

Pages

87

Series

Abstract

This thesis explores the transformative impact of Artificial Intelligence (AI) in financial supervision, focusing on the Qatar Financial Centre Regulatory Authority (QFCRA) as a case study. As AI technologies become increasingly integrated into financial systems, the nature of knowledge work within financial supervision undergoes significant evolution, presenting both opportunities and challenges. Traditional methods of regulatory monitoring, though effective, are resource-intensive and may overlook emerging risks in the complex financial landscape. Regulators can improve their monitoring skills by utilising AI's capacity to handle massive volumes of data, find pertinent information, provide predictive analytics, and recognise patterns. Key questions addressed include the implications of AI integration on knowledge work, the optimal division of tasks between humans and AI systems to maintain decision quality, and the challenges in ensuring optimal human capital for AI-augmented work. A comprehensive framework for managing this transition and fostering a symbiotic relationship between AI and human expertise is essential. The thesis uses a mixed-methods approach, integrating an empirical investigation that includes industry professional interviews with a survey of the literature. The results show how AI augmentation may be used in financial supervision and point up important problems for future policy formulation. The paper ends with suggestions for QFCRA and international financial authorities, highlighting the significance of AI and supervision technology practices and the necessity of continued research in this rapidly evolving subject.

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Thesis advisor

Vilkkumaa, Eeva

Keywords

AI, financial supervision, AI-augmentation, FinTech

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