Definition
A regulator that uses AI agents to supervise the firms in its remit rather than relying only on human examination. The UK's financial regulator, for example, has said it will operate its own surveillance this way while declining to write AI-specific rules. Firms should expect to be monitored continuously by regulators' AI, not just occasional human inspections.
Why it matters
Compliance expectations may arrive through automated scrutiny rather than new rulebooks, which raises the bar on evidence, logging, and controls for any organization deploying AI.