Singapore banks set to co-write guide for ethical use of AI

The guide, to be developed by MAS, is targeted for completion by the end of 2018.

The Monetary Authority of Singapore (MAS) is developing a guide to promote the responsible and ethical use of artificial intelligence (AI) and data analytics by financial institutions (FI).

According to an announcement, the guide will set out key principles and best practices for the use of AI and data analytics and help FIs to strengthen internal governance and reduce risks of data misuse. “The guide is targeted for completion by the end of the year. It will cover all segments of the financial sector including fintech firms,” MAS said.

MAS formed the Fairness, Ethics, Accountability and Transparency (FEAT) Committee that will co-write the guide. Members comprise of leaders from FIs such as PrimePartners, SingTel, Allianz, the Singapore Exchange (SGX), and Singapore banks.

MAS said it will be engaging the industry to obtain views and feedback on the proposed guide in Q2 2018. “MAS is also working closely with the Infocomm Media Development Authority to coordinate a broader understanding of AI governance across sectors,” it added.

MAS chief data officer and FEAT committee co-chair David Hardoon said, “AI and data analytics have huge potential to transform the financial industry for the better. But these technologies can also potentially be misused. MAS looks forward to working with the industry to encourage innovative uses of these technologies while putting in place the right conditions for their ethical use based on the principles of fairness, accountability, and good governance.”