The Role AI Plays in the Ability to Detect and Prevent Fraud

Talking Trends

The Digital Operational Resilience Act (DORA) is a European Union (EU) regulation that entered into force January 2023 and was applied on Jan. 17, 2025. It aims at strengthening the IT security of financial entities such as banks, insurance companies and investment firms and making sure that the financial sector in Europe is able to stay resilient in the event of a severe operational disruption. DORA is crucial for enhancing the digital operational resilience of financial institutions globally.

Does DORA apply to U.S. companies? The short answer is yes. DORA does apply to U.S.-based companies if they provide services to EU financial entities. This is similar to U.S. companies that collect data from EU citizens. They must comply with GDPR regulations to protect that data.

Financial institutions are under the regulatory spotlight to demonstrate effective compliance governance, including DORA. One of those ways is through Continuous Compliance — continuous risk assessments, control effectiveness measurement, maturity models and risk prioritization must form the backbone of an effective risk program, as we hear from Andrew Beagley, Chief Risk & Compliance Officer of RiskOpsAI, Roshan Shetty, Head OF BFSI and Public Sector at Tech Mahindra Americas, and Graham McMillan, Chief Technology Officer of Redgate.

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From your perspective, what are the trends shaping the future of crypto?  

The three most important trends in crypto are (1) regulation, (2) stablecoins, and (3) AI.

1. It's difficult to overstate the significance of the change from the Biden administration to the Trump administration when it comes to regulation. Crypto in the U.S. (and by extension in most developed countries) has been living in a dark age of tacit repression, due to shadow bans like Operation Chokepoint, SAB 121 and the lack of deterministic rules from the U.S. Securities and Exchange Commission. Despite this, crypto has a total market cap of $3.3 trillion. We expect that number to increase considerably as a pro-crypto federal apparatus takes office, both due to price appreciation and the proliferation of new projects and tokens. Key initiatives we are watching include stablecoin regulation, the Bitcoin Strategic Reserve, and decentralized token launch guidelines.
2. Stablecoins will become the primary mechanism for financial transactions in the near future. They are cheaper, faster and easier to use than traditional fiat rails and trade 24/7. Coupled with the evolving regulatory landscape in the U.S., the day is coming when stablecoins are integrated into things like Apple Pay and brick-and-mortar point-of-sale terminals, and the average person in the U.S. and abroad is using stablecoins for day-to-day transactions. There are currently $200 billion of USD stablecoins in circulation - we expect this number to reach multiple trillions before the end of the decade.
3. AI is already making its mark on-chain, with the recent explosion of new on-chain AI agents and platforms for launching them. Today, the functionality of these agents is primitive, but as models improve and the infrastructure for these agents to interact across chains and with the off-chain economy matures, we expect AI-driven agents to comprise a majority of on-chain activity.

We expect all three of these trends will serve to reinforce each other, producing an adoption cycle that is orders of magnitude larger in scale and value than what was seen in the 2020/2021 decentralized finance proof of concept cycle. 

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