Perplexity AI has emerged as a dark horse in the chatbot race- excelling not by pushing raw benchmark scores, but by optimizing for trust and reliability. A recent study by Legal Guardian Digital found Perplexity had the lowest hallucination rate (13%) of any major AI assistant and maintained 100% uptime during testing. By contrast, household names like ChatGPT had much higher error rates (~30%) and lower reliability. To put it simply, when it came to “getting everyday wor

Welcome to the May 2026 Ed. of our Regulatory Newsletter. Regulators worldwide remained focused on managing emerging technology risks and safeguarding stability amid ongoing global uncertainties. Key themes include harnessing artificial intelligence for fraud detection, strengthening supervisory cooperation, and maintaining robust macroprudential settings. Notable developments this month range from Singapore’s industry-wide AI fraud pilot to Australia’s prudential reforms an

Reimagining Everyday Processes with Intelligence We’re at a tipping point where intelligence is no longer the exclusive domain of humans. Large Language Models (LLMs) have exploded in size—from a few million parameters in 2012 to many billions today—and they’re being embedded across everyday business processes. The question: do we still need the same rigid protocols and escalation paths when machines can interpret context and respond dynamically? This shift is massive. Tradit

It seems like every bank and financial institution (FI) is racing to implement AI. From enhancing fraud detection to personalizing customer experiences, the promised benefits are huge. But as someone who is involved in helping banks and FIs make the best use of technology, I'm seeing a disturbing trend: firms are jumping into the deep end without knowing how to swim. A recent MIT report, "The GenAI Divide: State of AI in Business 2025," is an eye-opener. It found that a stagg

Welcome to the May 2026 Ed. of our global AI update. This month, AI clearly moved beyond just new model launches. While GPT-5.5 and other major updates grabbed attention, the bigger story was how companies and governments are now building AI into their everyday systems, work, and decision-making. From cybersecurity and cloud platforms to business operations and software, May showed that AI is becoming a real part of how things run. It’s not just about what AI can do anymore,

Why a record quarter (Q126) does not settle the structural question, and what the decline of Rome can tell us about the trajectory of capital markets Executive Summary The first quarter of 2026 was, by any reasonable measure, an excellent quarter for the Wall Street franchises. JP Morgan posted record market revenue of $11.6 billion, up 20% year on year. Goldman Sachs reported its second-highest quarterly revenue ever, with record equities trading of $5.33 billion and inves

Welcome to the April 2026 edition of our Regulatory Newsletter. This month’s global updates reflect continued momentum on technology and governance reforms, as well as measures to bolster financial stability and international coordination. Highlights include the European Banking Authority’s major proposals to simplify banks’ reporting, the UK’s Bank of England updating its bank failure (“resolution”) guides (with new cross-border bail-in tools), and a U.S. FinCEN proposal to

Welcome to the April 2026 edition of our global AI update. This month, the AI landscape didn’t just evolve, it scaled at an unprecedented pace. From record-breaking funding rounds to deeper enterprise integrations and national-level infrastructure bets, the focus is clearly shifting toward building long-term AI ecosystems. What stands out is how quickly AI is becoming foundational, not just a tool, but core infrastructure for business, creativity, and even public policy. Big

Welcome to the February 2026 edition of our Regulatory Newsletter. This month regulators globally continued to focus on the safe and responsible integration of technology and on strengthening financial stability frameworks. Key developments include the UAE’s central bank issuing detailed AI guidance to protect consumers, and the Bank of England summarizing industry feedback on AI adoption. In the UK, the Prudential Regulation Authority consulted on reforms to securitization

Welcome to the January 2026 edition of our Regulatory Newsletter. The year has opened with regulators moving quickly on familiar pressure points, particularly financial crime, operational resilience, and technology governance. This month’s updates include the UK Prudential Regulation Authority setting out its 2026 supervisory priorities for international banks, alongside U.S. action to strengthen AML tools to prevent large-scale fraud in public benefit programs and the F CA’

Why the same private credit loan is different on a bank’s or insurer’s balance sheet Introduction Since I started exploring partnerships between banks and insurers, I have been intrigued by the question: “how can a loan, with a certain economic risk profile, have a very different capital charge on a bank’s or an insurer’s balance sheet, and is this capital arbitrage, or not?” Over the years, I have had many discussions with colleagues on this topic and more recently, I have r

Meta just made a move that says a lot about where the company thinks the future of information is heading. After years of stepping away from news, it has now signed commercial agreements with some of the world’s biggest publishers. The goal is simple. Meta AI should finally be able to answer real-time questions with confidence, instead of sounding like it’s stuck in yesterday. Ask Meta AI about a breaking headline and you’ll now get tighter summaries and links from outlets li

The strong reaction to recent discussions around IFS 9 overlays and CRR Ill Margins of Conservatism (MoC) highlights how easy it is to conflate these two adjustment mechanisms. Both arise when models face uncertainty, data gaps, or limitations. Both have the effect of moving estimates away from "pure" model output. And both are seen by stakeholders as adding prudence. Yet beneath this surface similarity lie important differences in purpose, direction, and governance. Misunder

Executive summary The regulatory breakthrough that changes everything After years of institutional exile, cryptocurrency and stablecoins are poised for mainstream adoption by traditional banks. This is driven by a fundamental shift in the U.S. and global regulatory frameworks. The problem: prohibitive cost of capital Basel Committee capital rules imposed a punitive 1,250% risk weighting on crypto assets, making them economically impossible for banks. A simple example: a $1 mi

Welcome to the November 2025 edition of our regulatory newsletter, featuring landmark reforms in financial supervision and prudential policy worldwide. This month, regulators worldwide continued to sharpen rules on digital innovation, AI risk, and financial stability. This month’s highlights: The Bank of England (BoE) kicked off a consultation on sterling stablecoin oversight, while Singapore’s MAS set out draft AI governance standards. The U.S. Federal Reserve unveiled new

The regulatory environment for UK building societies is undergoing a significant shift. The Prudential Regulation Authority (PRA) is progressing toward the phased implementation of its Strong and Simple Regime (SSR) from 2026. The SSR is designed to simplify prudential requirements for small domestic deposit takers (SDDTs), thereby providing simplified liquidity and disclosure requirements for eligible building societies. Also, the PRA is set to withdraw Supervisory Statement

C ontents Introduction About CVA and SA-CVA Benefits of SA-CVA Challenges with IMA-CVA Approach for Banks Summary References Introduction CVA reflects the market value of counterparty credit risks, the expected loss if a counterparty defaults. The rise in CVA-related capital for global banks stems from new regulations and increasing derivatives complexity. CVA assesses counterparty risk for OTC derivatives. Basel’s new rules replace prior methods with SA-CVA and BA-CVA, remov

Abstract: Digital Asset Platform (DAP) represents a landmark transformation in capital markets. The strategic rationale behind DAP is to automate and digitize the entire asset lifecycle, from issuance through trading, settlement, and custody, by employing a permissioned blockchain, Daml Smart Contracts, and cloud-native architecture. This transformation results in faster settlement, eliminates manual reconciliation, enhances transparency, and enables real-time compliance, a

W elcome to the latest edition of our global AI update. This one captures the most significant shifts from late October and November, and a lot has been happening. India introduced its first comprehensive set of AI Governance Guidelines, designed to encourage innovation while promoting responsible adoption. Around the same time, companies like Cognizant began rolling out Claude to hundreds of thousands of employees, demonstrating how quickly enterprise AI is transitioning fro

Introduction Securitizations help European banks lend more. They allow banks to move the credit risks of loans off their balance sheets and use the freed-up capital to support new lending. But since the Global Financial Crisis (“GFC”), securitization volumes in Europe have dropped significantly, while in contrast, the U.S. market has grown, even though U.S. defaults peaked during the GFC. To address this, the EU Commission is reviewing how securitization works in the EU. This