Usage of artificial intelligence for financial institutions in Singapore

The Monetary Authority of Singapore (MAS), has lately been working on newest guidelines in relation to the artificial intelligence (AI) that is used by financial institutions. AI is still a developing technology and is yet to be regulated around the world. Singaporean government considers that there is a need to develop recommendations and guidelines to prevent misuse of artificial intelligence.

Considering the way AI works, it is hard to control it and to understand where the problem itself lays. Despite of the fact that programmers and developers are mostly sure that this technology does not need special legal regulation, governmental authorities do not agree with this position.

What are the most common problems when using AI and what will be outlined in the MAS recommendations? First, there are problems with data transparency and ethical use of technology itself. Right now, big corporations are not limited by legal requirements, but by the end of this year The Monetary Authority of Singapore promises to release the abovementioned guidelines.

Guidelines will contain basic principles and practical recommendations for financial institutions that use AI solutions. Data collection, analytics and use guidance will be available too. Responsible and ethical use of artificial intelligence will be the key points of this document. It will also extend to every step of AI usage and will be useful for companies with any of financial services specializations.

What other countries have also decided to adopt rules of AI usage? The Hong Kong Securities and Futures Commission (SFC) is on its way of developing recommendations as well. In their opinion, customers and users of financial services operating AI should know how their data is managed. The SFC released a document on the matter of robo-advice, services where AI bots or other services collect data and work as consultants or service providers.

Even though academic experts and government representatives have different points of view on regulating AI in legal scope, users of the financial services need to know more about their privacy. This is why we will stay on top of the situation as it unfolds to let you know about the latest updates of legislation of popular jurisdictions.