Digital innovation: Evolving asset management regulation 2026 report

Regulatory approaches to artificial intelligence are diverging, with some jurisdictions holding firm on technology-neutral rules while others pull back from AI-specific requirements introduced early in its evolution.

In this year's edition of KPMG International's Evolving Asset Management Regulation report, KPMG professionals explore the diverging regulatory approaches to AI, tokenization and digital assets to uncover opportunities and risks for asset managers.

While different approaches are emerging around the world to regulating the deployment of AI in financial services and asset management firms, tokenization frameworks are maturing from pilot to mainstream adoption in leading jurisdictions and digital asset rules continue to be refined to keep pace with real-world use cases.

As the rollout of AI gains speed and widespread adoption, regulators are considering how best to keep up while also balancing goals to foster innovation and control risks.

David Neuenhaus

Global Sector Head of Private Capital and Asset Management

KPMG International

Key highlights

AI regulation diverges. Some pull back on requirements already introduced

Tokenization frameworks mature from pilots to mainstream adoption

Digital asset rules roll out and adapt to use cases

Regulators balance innovation goals against emerging AI risks

Regulating AI

Regulation is evolving as asset managers look to deploy AI at speed across their business. Regulators are trying to both support responsible adoption and facilitate innovation.

Indeed, as some jurisdictions continue to rely on technology-neutral rules and guidance, others are now pulling back on AI-specific requirements that were implemented early in the AI evolution. Download the full report to see how different jurisdictions are approaching AI regulation.

Progressing tokenization of financial assets and funds

Regulators and policymakers are continuing their efforts to capitalize on the potential for tokenization to drive growth and competitiveness.

While major financial centers are moving to shape the rules, build infrastructure and capture market share, other jurisdictions are progressing at a slower pace and seeking to catch up. Download the full report to see how tokenization is being regulated around the world.

Safely adopting digital assets

The flurry of regulatory activity from previous years continues to have implications for asset managers as investors, and for the broader investment ecosystem.

Most notably, regulators are enhancing the requirements that govern cryptoasset providers to ensure new regimes are compatible with traditional finance requirements while protecting investors.

Download the full report to learn more about how different jurisdictions are adapting their digital asset regimes.

Opportunities and risks

Opportunities for asset managers
Risks for asset managers

AI deployment

Consider which AI use cases would be particularly beneficial and prioritize and support their adoption with robust governance and oversight.
Tokenization possibilities

Assess where tokenization could increase operational efficiency or improve investor outcomes and develop an implementation roadmap that takes account of required governance, skills and capabilities.
Growth

Develop a digital assets and tokenization strategy, including target operating models, investment priorities and capability requirements to ensure the firm is well-positioned for future market developments.

AI governance

Ensure there is good governance across the entire lifecycle of AI adoption, especially in terms of accountability for decisions taken and outcomes delivered.
Operational risk

Test the resilience of new infrastructure to make sure it is robust and functions as expected.
Digital assets suitability

Assess whether digital assets products only go to the intended target market and implement effective risk management arrangements.