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The Cost of Compliance Report Update

From Alert to Action on Regulatory Developments in AI

Susannah Hammond

Susannah Hammond

Senior Regulatory Intelligence Expert
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Posted: 2026-02-25

Regulatory approaches to AI have moved decisively from policy discussion into supervision and enforcement. 


The Cost of Compliance Report Update - Q1 2026 examines how supervisory expectations for AI are taking shape across jurisdictions and what this means for firms operating in an increasingly complex and, at times, fragmented global regulatory landscape. 


The growing regulatory focus on AI intensifies the data governance challenge. The safe and effective use of AI-enabled systems depends on the quality, integrity and governance of the data that underpins them. 


Inside, the report covers: 


• Supervisory expectations for AI across jurisdictions 

• Data governance as the enabling control framework for AI-enabled systems 

• The impact of AI-enabled activities on policies, controls and oversight 

• A practical playbook outlining five priority actions for firms 


This update builds on The Cost of Compliance Report 2025, which sets out the strategic and operational challenges facing risk and compliance functions globally.

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