Scaling AI for Regulatory Reporting in APAC Banks

A new report produced by Risk.net in collaboration with Nasdaq indicates that while artificial intelligence offers significant opportunities to improve the efficiency and accuracy of regulatory reporting for banks in the Asia-Pacific (Apac) region, actual adoption remains in its early stages.

The report, based on a survey of 50 Apac banking leaders, highlights a significant gap between the interest in AI technologies and their practical implementation within compliance workflows. Currently, only 8% of banks in the region are using AI to assist with regulatory reporting tasks.

Challenges in Regulatory Reporting

Regulatory reporting across the Apac region is becoming increasingly demanding. Supervisors are placing a heightened focus on data quality, consistency, and transparency, which puts pressure on the internal capabilities of financial institutions.

The survey identified several primary pain points in current reporting workflows, specifically regarding data sourcing, validation, and aggregation.

Nasdaq has further emphasized these challenges in related discussions, noting that banks frequently struggle with data quality, and standardization. Proposed solutions to these issues include the implementation of automation, robust governance frameworks, and accurate data taxonomy.

The Role of Agentic AI

The Risk.net report explores the growing role of agentic AI in automating key workflows. However, the research suggests that many firms do not yet fully appreciate the value this technology can unlock, often viewing agentic AI merely as an expensive automation equivalent.

Despite this perception, the report identifies specific priority use cases where agentic AI can provide the most value, including:

• Data extraction
• Anomaly detection

Strategic Responses and Technology Adoption

To adapt to the evolving regulatory landscape, banks are being encouraged to invest in technology and compliance management. Nasdaq has hosted discussions on how banks can automate compliance and enhance reporting through the use of AI and machine learning.

Among the tools available for these processes is the Nasdaq AxiomSL platform, a cloud-enabled, end-to-end system designed to centralize and scale regulatory reporting processes, including risk and regulatory calculations.

the SIX Digital Assets Regulatory & Tax Service, as of November 11, 2025, aims to simplify the tax directives and regulations governing digital assets to make compliance more straightforward.

Scaling AI Responsibly

As more firms explore the route toward AI integration, the focus is shifting toward how to scale these technologies responsibly. The integration of AI into regulatory reporting is seen as a way to address the increasing demands of supervisors while managing the operational challenges banks face during implementation.