On July 22, 2025 the Forum on Financial Supervision, which is part of the London School of Economics’ Systemic Risk Centre, published my essay, “Cybernetic and Superintelligent Supervision“.
The essay highlights that banking supervision’s ability to be effective is being challenged by long-term, irreversible trends. To adapt, supervision needs to cover more ground, better, and faster — i.e., it needs to become cybernetic and superintelligent. It proposes a roadmap to enable supervisors to “10x” and overcome key obstacles like the high labor intensity of examinations, over-specialization, and fear of making mistakes. The roadmap focuses on agility and prioritization, differentiated intensity of supervisory activities, and autonomy and alignment. Getting there requires the adopting the right technology (digital/AI), mindset (learning), and culture (agile).
The graphic below, which reflects the proposal to differentiate the intensity of supervisory activities, is excerpted from the essay.
Mike Hsu 
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