Welcome to the forefront of conversational AI as we explore the fascinating world of AI chatbots in our dedicated blog series. Discover the latest advancements, applications, and strategies that propel the evolution of chatbot technology. From enhancing customer interactions to streamlining business processes, these articles delve into the innovative ways artificial intelligence is shaping the landscape of automated conversational agents. Whether you’re a business owner, developer, or simply intrigued by the future of interactive technology, join us on this journey to unravel the transformative power and endless possibilities of AI chatbots.
The Jersey Financial Services Commission (JFSC) is trialling the use of an artificial intelligence (AI)-powered chatbot to provide answers to regulatory questions.
The JFSC is the regulatory body for financial services on the island, which is a well known international financial services centre. The island, which is located just 14 miles from France and has a population is just over 100,000 people, is one of three self-governing British Crown Dependencies alongside its near-neighbour Guernsey and the Isle of Man.
The watchdog said in an announcement this week that it has launched the chatbot in ‘beta’ – a reference to a testing phase during which an intended audience trials the product – as part of a ‘strategic commitment to digital transformation’. The chatbot is using generative AI (‘GenAI’), an increasingly popular and sometimes controversial form of AI that people or organisations can use to create text, visual and audio content.
The chatbot, which is named ‘Reggie’, provides ‘human-like’ answers to regulatory questions, the JFSC states in a ‘Meet “Reggie” in beta’ announcement (23 October).
The Isle of Man Financial Services Authority announced eight months ago that it was integrating a chatbot, called ‘REGI’, into its website with the same aim.  
RELATED ARTICLE Isle of Man regulator to use AI tool for compliance-related interactions – a news article (26 February 2024) on the Isle of Man Financial Services Authority’s similar move
Reggie ‘provid[es] a self-help platform for your regulatory questions,’ the JFSC explains (in a section on its website) to potential users. ‘Whether you’re a compliance professional looking for specific regulatory material or an individual seeking simplified explanations, Reggie is here to assist.’
‘Using generative AI technology, Reggie provides responses to a range of regulatory queries,’ the explanation continues. ‘Initially launched in beta, Reggie currently uses our codes of practice and the anti-money laundering and countering terrorist financing handbook as its knowledge base, with more resources to be added over time.’
It goes on to state that ‘while Reggie offers valuable assistance, it’s important to remember that the chatbot is not a substitute for fulfilling regulatory obligations but rather a helpful starting point for addressing regulatory questions.’
‘Like other large language models [LLMs], the tool makes use of generative AI to provide helpful and conversational responses to user queries. Reggie is, however, bespoke to us and only bases its answers on trusted sources, providing a level of reassurance to users,’ the authority’s announcement states. ‘Users can prompt the tool’s output to meet their specific needs, from individuals looking for layperson summaries of regulation, to compliance specialists looking to quickly locate specific source material’.
In February this year two Jersey-based companies, a digital agency called Blue Llama and a consultancy called Cyan Regulatory, launched an AI-powered chatbot called ‘MaxAMLian’ or ‘Max’ (‘AskMax.je’) to provide guidance on AML matters in the jurisdiction.
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The chatbot currently uses regulatory codes of practice and an anti-money laundering (AML), countering terrorist financing (CFT) and countering proliferation financing handbook as its ‘source material.’
‘The beta launch, which in essence is our next phase of user testing, will guide the further development of Reggie,’ the authority states, adding that ‘based on its success, additional source material will be added over time, further increasing the tool’s potential application.’
“The regulatory landscape is complex, and we are keen to find ways to support individuals and businesses in understanding it,” said JFSC chief risk officer Chris Gedrych in the announcement.
He described Reggie as “an important part of this work and a strong demonstration of how we can use technology to support regulatory effectiveness.”
The Council of Europe’s AML body recently concluded a comprehensive two-year assessment of Jersey’s level of compliance with international standards set by the Financial Action Task Force (FATF). In a 344-page assessment, published in July, MONEYVAL concluded that Jersey had ‘significantly strengthened its legal framework since the last mutual evaluation’ and ‘has most elements of an effective AML/CFT but still needs to improve the implementation of measures in certain areas’.
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The Isle of Man (IoM) Financial Services Authority announced a collaboration in February with a Luxembourg-based company called Regsearch to use AI for compliance-related interactions with the companies it supervises.
REGI makes use of what the company has described as ‘advanced AI algorithms to streamline compliance processes and enhance decision-making for businesses’. 
The collaboration stemmed from a Finance Isle of Man ‘InsurTech Accelerator Programme’ in 2022. Finance Isle of Man is an executive agency of the Department for Enterprise.
Regsearch’s chief executive and founder Darren Douglas at the time described the partnership as “exemplifying the power of collaboration between start-ups and regulatory bodies to drive meaningful change and progress”. Global Government Fintech reported in February that the company was offering use of REGI to the IoM FSA free of charge and would do likewise to any other regulator. It charges an annual recurring licence fee to companies to use its ‘Software as a Service’ (SaaS) solution called ‘Regsearch GMT’ (where GMT stands for ‘Governance Management Technology’).
The IoM, which is located in the middle of the northern Irish Sea, has a slightly smaller population than Jersey, being home to about 84,000 people, while Guernsey’s population is about 64,000. The Crown Dependencies are self-governing dependencies of the British Crown but not part of the UK.
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