Introduction

Abstract

In recent times, corporate regulators have begun to explore the use of technology to help them perform their regulatory and supervisory functions. Innovation in this area includes the use of natural language processing (NLP) – a form of artificial intelligence – to enable regulators to monitor compliance with corporate disclosure requirements. This chapter explores the potential that NLP offers in the area of corporate disclosure and the legal and regulatory implications that arise as a result. These implications include the following: (1) whether technology will change the way in which the language of corporate disclosure is interpreted by regulators; (2) whether technology will change the language of disclosure itself; (3) whether regulators will be able to maintain transparency in relation to how technology is used to monitor and review corporate disclosure; and (4) how to maintain an appropriate degree of human involvement and guarantee trust in the process.