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Italian regulator finds AI can improve supervision outcomes

A green washing machine on a concrete barg is the Obel Award unPAVILION.
Photo: Getty Images

Italian regulator has developed a decision support prototype utilizing LLMs to identify potential greenwashing by bond issuers.

CONSOB, the Italian financial markets regulator, and the University of Trento have jointly developed a prototype for detecting potentially misleading messages published by bond issuers.

The prototype uses large language models, specifically Google’s domain-adapted ClimateBERT and ESGBERT models, in combination with a proprietary dictionary to map a defined set of