FINRA Expands GenAI Capabilities to Strengthen Oversight and Compliance

In a recent statement, Robert Cook, President and CEO of the Financial Industry Regulatory Authority (FINRA), detailed how the organization is advancing its use of generative AI (GenAI) to enhance regulatory effectiveness under the FINRA Forward initiative. 

Building on decades of technological innovation, from developing Nasdaq in the 1970s to adopting cloud infrastructure a decade ago, FINRA is now integrating GenAI into its oversight and compliance programs. Cook emphasized that this phase marks both a continuation of FINRA’s long-standing technological leadership and a deliberate, governance-driven evolution in self-regulation.

FINRA’s experience with AI began in market surveillance, where algorithms now review hundreds of billions of market events daily to detect fraud or manipulation. This foundation has informed its current use of large language models and GenAI tools, including FILLIP, an internal chat system launched organization-wide in May 2025 to assist with regulatory reviews, drafting, and analysis. Cook reported that roughly 40% of FINRA staff now use FILLIP on a weekly basis. Additional GenAI-enabled tools help analyze investor complaints, summarize regulatory notice comments, and evaluate member firm filings.

Governance remains central to FINRA’s approach. Its AI Governance Committee oversees testing, data privacy, and ongoing security reviews to help ensure responsible use. FINRA also provides extensive employee training to support thoughtful, “human-in-the-loop” AI adoption.

For compliance professionals, Cook underscored that FINRA’s rules remain technology-neutral. The organization continues to collaborate with member firms on the use of GenAI, regulatory implications, and emerging risks, such as AI-enabled fraud. Through this feedback loop, FINRA aims to strengthen investor protection while advancing AI-driven regulatory innovation.