The Monetary Authority of Singapore (MAS) is working with key financial industry players to develop a guide to promote the responsible and ethical use of artificial intelligence (AI) and data analytics by financial institutions, it said in a statement on Monday.
The guide, targeted for completion by end 2018, will set out key principles and best practices for the use of AI and data analytics, helping financial institutions, including FinTech firms, to strengthen internal governance and reduce risks of data misuse.
To this end, the MAS has convened a “Fairness, Ethics, Accountability and Transparency” (FEAT) Committee, comprising data analytics experts in the financial sector, to work with it on the guide.
Among the ten members of FEAT, Mr Raymond Au, Chief Data Scientist and Head of Asia Lab, Allianz, is from the insurance industry.
Dr David Hardoon, Chief Data Officer of MAS and co-chair of the committee, 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.”
The regulator will be engaging the industry to obtain views and feedback on the proposed guide in 2Q2018. It is also working closely with the Infocomm Media Development Authority, Singapore’s government agency which regulates and develops the infocomm and media sectors, to co-ordinate a broader understanding of AI governance across sectors.