The Collateral Damage of Regulatory Automation Telecom regulators across North America and Europe are deploying AI-driven spam filters with increasing aggression. The stated goal is noble: block the rising tide of scam calls and SMS that plague subscribers. But the execution is creating a new problem—one that regulators didn't anticipate. Legitimate financial institutions are now losing the ability to reach customers at all. Two-factor authentication codes disappear. Fraud alerts go silent. Payment reminders never land. Banks report blocking rates as high as 40% on certain outbound channels, even when every authentication header and protocol is correct. The root cause: regulators trained their spam classifiers on flagged traffic patterns—rapid sequential calls, keyword matching, sender reputation—without building sufficient exception handling for financial services. The AI learned to recognize patterns that look like spam.…