The Monetary Authority of Singapore (MAS) has started working to develop a guide that will encourage responsible and ethical use of artificial intelligence (AI) and data analytics by financial institutions.
MAS is devising the guide in collaboration with other key industry stakeholders.
The regulator has formed a team called Fairness, Ethics, Accountability and Transparency (FEAT) Committee that comprises thought leaders and practitioners of data analytics in the financial sector to help in creating the guide.
Expected to be completed by the end of this year, the guide will cover all aspects of the financial sector including fintech firms.
Besides setting up best practices of AI and data analytics usage, it also aims to help the financial institutions in improving internal governance as well as reducing risks associated with data misuse.
FEAT committee co-chair Hsieh Fu Hua said: “The guide would be very useful for the financial industry. As the industry increasingly adopts AI and data analytics to serve their customers, they must also play their part to ensure that these technologies are used in a responsible manner.”
MAS chief data officer 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.”