The Monetary Authority of Singapore (MAS) has proposed that financial institutions must clarify their responsibilities for AI risk management.

A consultation paper released by the Monetary Authority of Singapore (MAS) on Thursday outlines guidelines requiring financial institutions' boards of directors and senior management to be accountable for the risks arising from their use of artificial intelligence (AI). The consultation paper states that the board or its authorized committee will be responsible for ensuring, among other things, that AI risks are clearly addressed within the financial institution's risk appetite framework. Senior management will be responsible for ensuring the effective implementation of AI-related risk management policies and procedures, and for ensuring that staff possess the necessary competence. This proposal comes as Singapore is urging businesses to increase investment in employee training and join its global peers in adopting AI. For example, three Singaporean banks are currently retraining all 35,000 local employees for one to two years to prepare for the changes brought about by AI. (Jinshi)