At the heart of the smart regulator's functionality is the use of advanced technologies such as artificial intelligence (AI), big data analytics, and machine learning. These tools enable regulators to analyze vast amounts of data in real-time, allowing for informed decision-making and timely interventions. For example, in financial regulation, machine learning algorithms can monitor transactions to detect anomalies indicative of fraud or market manipulation, enabling quicker responses and reducing the impact of such activities on the economy.