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Regulatory Wrap episode 87: Regulators take on frontier AI
In Regulatory Wrap for the week to September 18, Jay Hampshire unpacks the FCA’s multi-firm review on the use of frontier AI in financial services to test operational resilience.
In Regulatory Wrap for the week to September 18, 2026:
In this week’s Regulatory Wrap, we discuss the FCA’s latest review of how firms use frontier AI to analyze operational resilience, which found that models are identifying gaps faster than teams can patch them.
Highlights:
- The FCA’s review found that frontier models are giving firms the ability to review their operational readiness at unprecedented speed and scale
- These models help reveal vulnerabilities faster than ever before, though firms are finding that they lack the resources needed to address them at the same speed they’re being found
- Engineering, IT, and remediation teams are determining how best to keep up with vulnerabilities these frontier models are uncovering
- The FCA stressed that frontier AI is becoming a test of organizational resilience as opposed to just a productivity tool
- Firms can review their resilience posture by taking a holistic look at their cybersecurity, clarifying accountability around AI decision-making, and obtaining full visibility of vendor supply chains
This week’s Regulatory Wrap is brought to you by Global Relay’s Senior Content Marketing Manager, Jay Hampshire.
When it comes to operational resilience, the firms doing the groundwork now will be the ones that prosper down the line. Beyond assessing their own cybersecurity, firms should have full visibility into third-party risk management practices to stay resilient on all fronts.