How regulatory reporting can become a leading, future-ready function

The 2026 regulatory reporting survey finds banks updating their reporting models to keep pace with evolving risks and expectations.

In brief

• Regulatory reporting teams are moving from manual report production to more scalable, tech-enabled models.
• Firms are focusing on stronger governance, controls and data quality as regulators look more closely at key risks.
• AI use is growing as banks build tools to support analysis, checks and reporting.

A continuously evolving regulatory environment combined with rapid advances in technology have resulted in an opportunity to reshape regulatory reporting functions. Banks are rethinking how the function is governed; how data is managed; and how technology can make reporting more accurate, controlled and useful to the business. The 2026 EY Regulatory Reporting Target Operating Model Survey shows that this shift is already underway, as institutions invest in stronger data foundations, automation and AI to keep pace with rising supervisory expectations, and a more complex risk environment.

The survey included all eight US-based global systemically important banks, along with a wide variety of large and foreign banking organizations, regional banking organizations and US branches of foreign banking organizations. Since the last survey in 2023, firms have become more deliberate in how they are modernizing regulatory reporting; they are treating automation, data architecture and AI not as stand-alone initiatives but as building blocks of a more resilient and forward-looking operating model.

The survey assessed how firms are approaching regulatory reporting today and where common practices are emerging across the industry. Four areas in particular stand out as banks move from legacy approaches to a more modern regulatory reporting model: data and technology, AI, governance and organizational structure.

Data and technology are fundamental to regulatory reporting modernization

The most frequently selected enhancement categories were:

Banks are focusing their near-term investments on strengthening the core systems, data foundations and reporting infrastructure that support accuracy and control. Survey respondents most often cited authorized data stores as a technology priority (selected by 68% of institutions). That priority points to a broader push to build data-first architectures that can scale, integrate and better reflect underlying risks supported by continued investments in authorized data sources, data quality and end-to-end automation. It also underscores the practical reality that AI and automation will be more effective if they are built on trusted data, consistent controls and technology that can support regulatory expectations over time.

AI is being integrated across the regulatory reporting operating model

Q: Do you plan to leverage any AI-powered tools in the next 1-3 years?

Firms are beginning to embed AI across the reporting lifecycle, from interpretation and analysis to production and review. Many are using AI as a force multiplier, reducing manual, time-intensive work so teams can spend more time on judgment, controls and higher-value analysis. The survey points to clear momentum, with 87% of firms reporting plans to leverage AI tools over the next one to three years. Half of the respondents expect to develop those capabilities internally rather than relying on third-party tools. That approach suggests banks view AI as deeply connected to their own data environment, control framework and reporting processes rather than as a stand-alone tool.

Embedding strong governance remains a priority

Nearly all firms reported they have a regulatory reporting governance committee (RRGC) in place. Firms are making strong governance, issue management and data accountability central to their reporting processes. Of surveyed firms, 91% identified issue management and escalation as the responsibility of their RRGC.

Talent has been impacted by investments in regulatory reporting

How production teams are organized:

As they invest across the data supply chain, many institutions are reassessing how their teams are organized and where work is being performed. Reporting teams are growing, alternative delivery models are expanding and offshore support is increasing. The survey asked respondents whether their production teams are organized by report, by product or through a hybrid model. Most firms selected report-based or hybrid models, regardless of the institution type. This points to increased consistency in the production team structure across the industry.

Regulatory reporting as a strategic capability

The next phase of regulatory reporting will be defined by how effectively institutions enhance governance, data, controls, technology and talent as part of a more integrated operating model. Leading firms will build reporting functions that are more reliable, more transparent, and better able to support both regulatory confidence and business decision-making. That requires embedding governance into day-to-day processes, strengthening data foundations, scaling automation and applying AI responsibly. For banks that get this right, regulatory reporting can move from a reactive legacy obligation into a future-ready strategic capability.