AI Governance for Regulated Firms

You are already vulnerable to AI. Your regulator is building the tools to prove it.

Somewhere in your business, an AI system is making things up, deciding things about customers or handling personal data, and nobody has written it down. Parsias finds it before a supervisor does.

Patented discovery. No agents, no surveys, no manual inventory. First results in under five minutes.

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The Problem

AI makes things up. Confidently.

Large language models do not know when they are lying. They predict plausible words, deliver them with total confidence and leave no trace of doubt. Nobody notices until a customer, a judge or a regulator does.

18 of 45

legal authorities cited in a UK High Court case in 2025 did not exist. The court issued a warning to the whole profession.

A$440k

fee partly refunded by Deloitte after an AI-assisted government report quoted a judge who never said it, and cited research never written.

If it can happen in the High Court and inside the Big Four, it is already happening in your claims team, your call centre and your credit desk. You simply have not found it yet.

The Exposure

Your regulator does not fine the model. It fines you.

An AI error is never just a technology problem. The moment it touches a customer, a decision or personal data, it becomes a regulatory breach. Under the Consumer Duty and the Senior Managers regime, it carries a named individual's name. Possibly yours.

A chatbot misstates a policy term.

The customer relies on it. The complaint lands. The answer was invented.

Consumer Duty breach

A pricing model drifts.

One group of customers quietly pays more than another. Nobody is watching the model.

Fair value and discrimination exposure

An AI tool processes personal data unassessed.

No impact assessment, no lawful basis on file. Reddit was fined partly for exactly this.

UK GDPR breach

A vendor switches on an AI feature.

It arrives inside software you already license, in a routine update nobody approved.

Third-party risk failure

Each of these is a vulnerability. Most sit in systems nobody thinks of as AI: owned by nobody, watched by nobody.

The Shift

Regulators are now using AI to watch you.

Supervision used to sample. AI-enabled supervision reads everything, never tires and never forgets.

FCA reads your filings.

Its 2026/27 work programme commits it to using generative AI to review the documents firms submit.

Agentic supervision.

The FCA's Mills Review, published in July 2026, recommends an AI-enabled, agentic model of supervision.

CMA is already looking.

Its agentic AI walks consumer journeys at scale. Its first investigations under new consumer-law powers came from it.

The vulnerabilities that once hid in the noise are about to surface in the regulator's own analytics. The only question is who finds them first: you, or them.

The Regulators

Five UK regulators already have jurisdiction over your AI.

Britain has no AI Act. Do not mistake that for safety. Five regulators already hold the powers to sanction your AI, and they are using them today.

FCA

Customer outcomes, Consumer Duty and senior-manager accountability.

PRA

Model risk across the firm, under SS1/23.

ICO

Personal data and automated decisions. A statutory AI code is on the way.

CMA

Consumer law, with fines of up to 10% of global turnover.

Ofcom

Communications and online safety.

Four of them coordinate through the Digital Regulation Cooperation Forum. A failure one of them spots can quickly reach the others.

The Penalties

The fines have grown teeth.

£44m

FCA fine on Nationwide for weak financial-crime controls, December 2025.

£14.47m

ICO fine on Reddit, including for a missing impact assessment, 2026.

£14m

ICO fine on Capita for security failures, October 2025.

10%

of global turnover: the CMA's new ceiling for consumer-law breaches.

None of these was an AI case. Each was a failure of control, data or oversight: precisely the failures AI multiplies, silently and at machine speed. The first big AI fine is a matter of when, not if. The FCA levied £124m in fines in 2025; the average ICO fine has risen from about £675,000 in 2023 to almost £3.2m this year.

The Question

So: where is your AI?

Answer these honestly.

01How many AI systems run in your business today?
02Which arrived inside a vendor update nobody approved?
03Which make or shape decisions about customers?
04Which touch personal data?
05Which senior manager owns each one?

Most firms cannot answer a single one. Their AI vulnerabilities live in that silence: unseen, unowned and growing by the week. The supervisor's AI will not share that blind spot.

Find My AI Vulnerabilities →

The Answer

Parsias finds your AI vulnerabilities and keeps you out of trouble.

Three steps. No surveys, no self-declaration, no blind spots.

Discover.

Patented automated discovery finds every algorithm in your estate: built in-house, bought in, or buried inside third-party software.

Map.

Each system is mapped against the obligations of all five regulators. Every vulnerability is named, ranked and given an owner.

Prove.

A deterministic Algorithm Register gives your board, your senior managers and your regulator one evidential record.

What our clients say.

“Having automated algorithm visibility is a game changer; no one else is doing this.”

Technology Assurance Partner, Leading Consultancy

“Controlling AI starts with an inventory. Parsias gives this to us.”

Head of Data Governance, UK Bank

Sources: BIICL · AP · Compliance Week · Mills Review · Osborne Clarke · Nationwide · Reddit · ICO trends · FCA totals

Your regulator will find your AI vulnerabilities. Find them first.

Nine questions. Five minutes. Then you will know exactly where you stand.

Find My AI Vulnerabilities →

Parsias Advisory

Do you know where to find your vulnerabilities? We can solve that dilemma.

Software shows you the problem. Experienced people fix it. Parsias Advisory brings partner-grade regulatory and AI delivery experience to the vulnerabilities your register exposes.

We have sat on both sides of the table: advising regulated firms, and building AI inside them.

Services

Six ways we keep you out of trouble.

Each one starts where the register stops: with a named vulnerability and an owner who needs it closed.

Vulnerability Assessment.

A rapid, independent view of where your AI exposes you, and what to fix first.

ISO 42001 Reviews.

An independent review of your AI management system against ISO/IEC 42001: gaps found, controls mapped and a clear route to certification.

Accountability Mapping.

Every AI system tied to a named senior manager, so reasonable steps can be shown, not claimed.

Third-Party AI Diligence.

Find the AI inside vendor software before you sign, and the vulnerabilities it brings with it.

Remediation.

Policy, controls, testing and documentation, delivered until the vulnerability is closed.

Build Your Own.

For firms that want it in-house: we build your own version of Parsias inside your technology stack.

Our Methodology

Find it. Understand it. Close it.

Three tiers, each with specific outputs. Developed with regulated organisations in financial services, insurance, healthcare and the public sector, and adapted to each client.

Foundation

Find every vulnerability

AI Identification

Catalogue every algorithm across your technology and your vendors. A vulnerability you have not found cannot be fixed.

AI Categorisation

Classify by type, use case, data sensitivity and risk tier. High-risk systems get enhanced scrutiny; the rest are managed proportionately.

Accountability

Named business, technical and governance owners for every system, with defined escalation paths.

Assessment

Understand the exposure

Regulatory Mapping

Maps each system to its obligations at article level across the FCA, PRA, ICO, CMA and Ofcom, plus the EU AI Act, DORA and your own policies.

Vulnerability Assessment

Tests each system for bias, fairness, explainability, data quality, resilience, consumer impact and security.

Risk Treatment

Proportionate controls for each vulnerability, with named owners and deadlines.

Operational

Close it and keep it closed

Evidence Packs

Board dashboards, regulatory packs, heat maps and audit evidence, ready before anyone asks.

Decision Gates

Governance gates at each lifecycle stage: deployment approval, periodic review, escalation and retirement.

Continuous Monitoring

Tracks model drift, fairness degradation and regulatory change. New vulnerabilities feed straight back into discovery.

Deliverables

What you receive.

Tailored to your firm, and built to stand up in front of a supervisor.

AI Vulnerability Report

Every vulnerability rated, every gap analysed, every fix prioritised.

Accountability Blueprint

Role maps and decision flows that tie every AI system to a senior manager.

Policy Starter Kit

Policy templates, risk procedures and ethical-use frameworks, ready to implement.

KPI Framework

Metrics tied to your risk appetite, so the board can see vulnerabilities closing.

Remediation Roadmap

Fixes sequenced by exposure: the most dangerous vulnerabilities first.

Change Programme

Training, communications and operating models, so the fixes stick.

A vulnerability you know about is a project. One you do not is an enforcement case.

Start with an independent AI vulnerability assessment.

Book an Assessment →

Parsias Benchmarking

How vulnerable is your AI? Compared with everyone else.

Parsias holds a library of 700 regulations and a benchmarking dataset of 10,000 businesses. Benchmarking puts the two together to show you which regulations apply, how exposed you are and how you compare with businesses of the same size in the same sector.

Not an industry survey. Real data, compared like for like.

The Data

700 regulations. 10,000 businesses. Three answers.

No other firm holds both: a regulatory library mapped at requirement level, and a dataset of how real businesses actually measure up against it.

700

regulations in the Parsias library, from all five UK regulators to the EU AI Act, DORA and global standards.

10,000

businesses in the benchmarking dataset, segmented by size and sector.

1:1

comparison: you are measured only against businesses of your size, in your sector.

Which regulations apply.

The regulations, and the specific requirements within them, that bind your business. No more, no fewer.

Your regulatory exposure.

Where your AI and your controls fall short of those requirements, ranked by severity.

How you compare.

Your position against businesses of the same size and the same sector: ahead, level or behind.

What We Measure

Four numbers your board will want to see.

Each is scored against businesses of the same size and the same sector, drawn from our dataset of 10,000.

Estate Size.

How many AI systems you run, and how many arrived inside vendor software, against firms like yours.

Vulnerability Density.

Vulnerabilities per system, by severity. Shows whether your exposure is normal for your sector or an outlier.

Governance Maturity.

Your position on our nine-question, three-tier scale: Foundation, Assessment and Operational.

Time to Close.

How fast you close a vulnerability once found, compared with the firms a supervisor will compare you with.

Your Rulebook

Which rules apply to you? Most firms guess.

Our library holds 700 regulations. Only some of them bind your business. We work out which, at requirement level, from your permissions, your activities and the AI you actually run.

Profile.

Your regulatory permissions, business lines, customer types and AI estate, captured in a single profile.

Map.

The profile is mapped against the FCA, PRA, ICO, CMA and Ofcom, the EU AI Act, DORA and global standards.

A requirements register: every obligation that applies, the system it applies to and the gap, if there is one.

Deliverables

What you receive.

Built to be read by a board and tested by a supervisor.

Peer Benchmark Report

Your four scores against your peer group, with the distance to the best quartile.

Regulatory Requirements Register

Every regulation and requirement that applies to your firm, mapped to the systems it governs.

Ranked Gap List

Where you fall short of your peers and your rulebook, ordered by regulatory exposure.

Board Briefing

One page: where you stand, where you are exposed and what closes the gap fastest.

Know where you rank before your regulator ranks you.

Start with a benchmark of your own estate.

Book a Benchmark →

Parsias RegTech

The AI Governance Stack. Designed and deployed in your estate.

We design, deploy and operate a complete AI governance stack inside your technology estate: infrastructure, models, discovery, regulatory mapping and evidence, running within your security and data boundary.

Your cloud tenancy or your data centre. Your corporate LLM, a private model on a neocloud, or a model on your own hardware.

The Architecture

Five layers. One governed stack.

Each layer is designed to your reference architecture, provisioned as code and inspectable by your security team, your auditors and your regulator.

Layer 1

Infrastructure

A dedicated, isolated environment in your cloud tenancy or on your own hardware. Provisioned as code, private networking only, no public ingress.

AWSAzureGoogle CloudOn-premises KubernetesTerraformPrivate endpoints

Layer 2

Model

An inference layer behind a governed gateway. Routes to your corporate LLM or a private open-weight model. Every prompt and response logged; no training on your data.

Corporate LLM gatewayOpen-weight modelsNeocloud GPUsOn-premises GPUsEvaluation harnessGuardrails

Layer 3

Discovery

Patented, agentless discovery through read-only connectors. Finds every algorithm across code, cloud services, data platforms and third-party SaaS.

Code repositoriesCloud APIsData platformsSaaS connectorsRead-onlyAgentless

Layer 4

Regulatory Mapping

A mapping engine over the Parsias library of 700 regulations, matched at requirement level to each system it finds, plus your own policies.

700-regulation libraryFCAPRAICOCMAOfcomEU AI ActISO 42001

Layer 5

Evidence

The deterministic Algorithm Register, dashboards and audit trail. Same inputs, same outputs, every time. Exports to the tools you already run.

Algorithm RegisterDashboardsAudit logsGRC exportSIEM feedAPI

Design and Deployment

From reference architecture to live stack.

A fixed, four-stage engagement run jointly with your architecture, security and data teams.

Architecture and Threat Model

Reference architecture, data-flow diagrams, threat model and security review pack, agreed with your architecture board before anything is built.

Approved design

Provision

Infrastructure provisioned as code into your tenancy: private networking, encryption keys held in your key management service, SSO and role-based access.

Infrastructure as code

Model Integration

Connect your corporate LLM gateway, or deploy and harden a private model on a neocloud or your own GPUs. Evaluated for accuracy, drift and leakage before go-live.

Evaluated and hardened

Connect, Validate and Operate

Read-only connectors switched on, first discovery run and the register reconciled. Monitoring wired to your SIEM, runbooks delivered, then run by us or handed to your team.

Live and monitored

Model Options

Three ways to run the models.

The model layer fits your risk appetite, your data classification and your existing contracts.

Your Corporate LLM.

Parsias calls the enterprise model you already license, through your existing gateway. No new vendor and no new data flow.

Private LLM on a Neocloud.

A dedicated open-weight model on specialist GPU infrastructure, single-tenant and ring-fenced for your firm.

Private LLM on Your Hardware.

A model on your own GPUs in your own data centre, for data that must never touch a third party.

Example Builds

The stack in production.

Screens from AI Governance Stacks running inside client environments.

AI Usage Mapping

Shows where AI flows through business functions, processes and use cases.

AI Regulatory Risk

Ranks every AI system as low, medium, high or unacceptable risk, by business area and AI type.

Governance Coverage

Shows endpoints connected, algorithms found, scan frequency and approval timelines.

Algorithm Scanner

Lists every algorithm found, with version, system, use case and type. Searchable, exportable and fully audited.

Vulnerability Matrix

Prioritises vulnerabilities across compliance, bias, fairness, privacy, transparency, accountability and security.

Algorithm Analysis

Tests each algorithm against policy and regulation, and shows exactly where it is vulnerable.

Security by Design

Built to pass your security review.

The stack inherits your controls rather than asking you to trust ours.

Data Residency

All processing stays in your tenancy and your chosen region. Nothing is shared between clients.

Encryption

Encrypted at rest and in transit, with keys held in your own key management service.

Identity and Access

SSO through your identity provider, role-based access and least privilege throughout.

Observability

Every model call, scan and register change logged and streamed to your SIEM.

Determinism

Inspectable Controls

Every component sits where your auditors and supervisors already look.

Your estate. Your models. Your AI Governance Stack.

Start with an architecture session with our engineers.

Scope Your Stack →

People

Partner-grade experience. Hands on the code.

Our team has spent its career where regulation meets technology: advising regulated firms, building AI inside them and defending what they built.

We have sat on both sides of the table. That is why our software finds what checklists miss.

The Team

The people behind Parsias.

Daniel Grimes

Co-Founder & CEO

Partner-grade career at EY and CSC/DXC, then hands-on AI delivery at Experian, Metapack, Callsign and others. Holds a European patent in agentic AI orchestration and a postgraduate qualification in AI and Data Science.

Sally Camm

Co-Founder

Track record of scaling financial services and technology businesses across FTSE and Fortune 100 organisations in regulated environments. Expertise across people, culture, governance, risk and transformation.

Hogarth Andell

Legal & IP Adviser

25 years in law. Former senior director at Sony Entertainment, leading global trademark and patent work. Non-executive director at React. Represents the UK on AIPPI's IP Enforcement Committee.

Didar Gelici

Governance, Risk & Compliance

More than 18 years in governance, risk and compliance across banking, payments and financial services. Builds control frameworks, leads regulatory change and establishes risk functions.

Find your vulnerabilities before anyone else does. That is the whole idea.

Clients, hiring and partnerships. Get in touch.

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Contact

Find out what your AI is hiding.

Tell us a little about your firm. We will come back within one working day with how a discovery would run for you. Every conversation is confidential.

Run a Discovery

See your AI vulnerabilities on your own estate.

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Email Us

We respond within one working day.

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Partnerships

Consulting firms, system integrators and technology partners.

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AI Vulnerability Diagnostic

Nine questions your regulator will ask. Could you answer them today?

We use these nine questions to diagnose every client we work with. Each one exposes a different kind of AI vulnerability. Most firms discover they are weaker than they thought.

Score yourself honestly from one to five. One means you could not answer if asked tomorrow. Five means you could hand over the evidence this afternoon.

Get My AI Vulnerability Report →Score Myself First

Quick Self-Assessment

Score yourself one to five.

Be honest. A supervisor will not mark you generously, and neither will the next headline.

Foundation

Know what you have

AI Identification

If a supervisor asked tomorrow, could you produce a complete list of every AI system you run within 24 hours?