The U.S. Commodity Futures Trading Commission (CFTC) is employing artificial intelligence to enhance its monitoring of prediction market trading, focusing on platforms like Polymarket. CFTC Chair Michael Selig highlighted the use of AI tools to detect insider trading and market manipulation by analyzing large-scale trading data for anomalous transactions and non-compliant accounts. This technological advancement aids in deciding whether to initiate investigations or issue subpoenas. Despite platforms like Polymarket operating outside the U.S. without local licensing, the CFTC is committed to enforcing regulations on cross-border transactions involving U.S. users. The agency is also integrating on-chain analysis tools and market anomaly detection systems to oversee both crypto and traditional financial markets. Prediction market platforms, including Polymarket and Kalshi, are enhancing their compliance measures by adopting third-party on-chain data analytics services. The CFTC is currently processing numerous reports of trading anomalies, with potential enforcement actions expected to increase.