Artificial intelligence has been widely employed to enhance productivity, services and products, and customer experiences by financial institutions (“FIs“), and FIs are no doubt familiar with the Monetary Authority of Singapore (“MAS“)’s Fairness, Ethics, Accountability and Transparency (“FEAT“) Principles concerning the responsible use of Artificial Intelligence and Data Analytics (“AIDA“). With the entrance of accessible generative artificial intelligence (“GenAI“) products and services since 2022, the AIDA landscape has been drastically transformed. GenAI is both transformative and disruptive to the financial sector. GenAI helps FIs be more efficient, provides more personalised customer experiences, and generates content and ideas for products and services. Alongside these benefits, come the risks, including more sophisticated cybercrime tactics, copyright infringement, data risk and biases.
Specifically, GenAI systems pose risks that go beyond those of “traditional” AI and potentially extend beyond the scope of the current FEAT Principles. To address this, MAS, financial industry participants and technology partners (“consortium“) have collaborated on Project MindForge to develop a risk framework for the responsible use of GenAI for the financial sector. MAS announced on 15 November 2023 that Phase One of the project has successfully concluded with the development of a comprehensive GenAI risk framework as well as a platform-agnostic GenAI reference architecture. The full Whitepaper detailing the GenAI risk framework is expected to be shared in January 2024. The Executive Summary of the Whitepaper is available here.
This Update highlights the key aspects of the GenAI risk framework that FIs and players in the technology sector should look to incorporate in their policies, procedures, and frameworks for the responsible use of AI, along with our comments and how Rajah & Tann can help you successfully navigate the myriad of issues concerning GenAI within the legal, regulatory and technical risk frameworks to meet your business’ needs. You may also find helpful our Client Update on the risks associated with GenAI models and the new GenAI Evaluation Sandbox by the Infocomm Media Development Authority (IMDA) and the AI Verify Foundation, available here.
For more information, click here to read the full Legal Update.
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