Features and Scope of Regulatory Technologies: Challenges and Opportunities with Industrial Internet of Things

Regulatory Technology (RegTech) is an emerging set of computing and network-based information systems and practices intended to enhance and improve regulatory compliance processes. Such technologies rely on collecting exclusive information from the environment and humans through automated Internet of Things (IoT) sensors and self-reported data. The key enablers of RegTech are the increased capabilities and reduced cost of IoT and Artificial Intelligence (AI) technologies. This article focuses on a survey of RegTech, highlighting the recent developments in various sectors. This work identifies the characteristics of existing implementations of RegTech applications in the financial industry. It examines the critical features that non-financial industries such as agriculture must address when using such technologies. We investigate the suitability of existing technologies applied in financial sectors to other industries and the potential gaps to be filled between them in terms of designing information systems for regulatory frameworks. This includes identifying specific operational parameters that are key differences between the financial and non-financial sectors that can be supported with IoT and AI technologies. These can be used by both producers of goods and services and regulators who need an affordable and efficient supervision method for managing relevant organizations.