SINGAPORE: Financial institutions will be expected to assess and manage risks from their use of artificial intelligence, including AI by third-party providers, under new guidelines issued by the Monetary Authority of Singapore (MAS) on Wednesday (Oct 7).
They also remain accountable for AI used in the services they provide even when the technology is developed, operated or supplied by a third party, MAS said.
“Financial institutions should obtain sufficient assurance from third-party providers, assess whether third-party AI is suitable for their intended use, and apply compensating controls where practical constraints or assurance gaps arise,” the central bank said in a media release.
If the risks still cannot be brought within the firm’s risk appetite, it should consider limiting, suspending or replacing the third-party AI service.
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