The Monetary Authority of Singapore (MAS) is working with financial industry partners to create a framework for financial institutions on the responsible adoption of Artificial Intelligence (AI) and Data Analytics (AIDA).
The new framework has been given the name “Veritas.” The goal is to enable financial services firm a solution to evaluate AI and data usage on principles of ethics, fairness, transparency and accountability.
The advent of AI brings many benefits for both financial services firms as well as consumers and businesses. But risks are intrinsic as AI becomes pervasive. MAS wants to get ahead of the AI/Data train to establish a process to strengthen internal governance around the application of AI and the management and use of data.
The Veritas framework was highlighted by Heng Swee Keat, Deputy Prime Minister of Singapore, in a speech laying out Singapore’s National AI Strategy at the Singapore Fintech Festival and Singapore Week of Innovation and TeCHnology (SFF x SWITCH) 2019.
First, Veritas is expected to focus on use cases in three areas: customer marketing, risk scoring, and fraud detection.
The Veritas consortium is currently made up of 17 members, comprising MAS, SGInnovate, EY, and 14 financial institutions. The consortium is expected to produce a report on its findings and conclusions in the second half of 2020.
Dr. David Hardoon, Special Advisor (Artificial Intelligence), MAS, commented:
“AI has the potential to transform financial services, but it must be used in a safe and responsible manner. Good governance is essential to AI adoption in the financial industry. With FEAT and Veritas, financial instituitons will have the guideposts and toolkit to institute sound AI governance practices. This will pave the way for a vibrant and responsible AI-driven financial centre in Singapore.”