The Monetary Authority of Singapore (MAS) has brought together industry players to work on guidelines for the "responsible and ethical" use of AI and data analytics in the financial services sector.
With banks increasingly turning to AI and data analytics in areas such as customer service and fraud prevention, MAS is looking to establish key principles and best practices.
To do this, the watchdog has set up the Fairness, Ethics, Accountability and Transparency (Feat) committee, co-chaired by MAS chief data officer David Hardoon, who is joined by representatives from, among others, DBS, Allianz, SingTel, SGX and OCBC Bank, which recently set up a dedicated AI lab.
The committee is seeking industry feedback in the second quarter, with the aim of completing a guide that will cover all segments of the financial sector, including fintech firms, by the end of the year.
MAS may be looking to put in place guidance but it has been keen to encourage the use of AI and data analytics, recently offering up a S$27m grant to promote the further use of the technologies in the financial services market.
Says Hardoon: "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."