Singapore’s central bank wants all FinTech AI use cases subject to independent review

Singapore’s Monetary Authority, which acts as both central bank and finance industry regulator, wants all local industry players to seek independent review of AI use cases before deployment. The island nation’s combination of strict regulation and low taxes have made it one of the world’s premier finance hubs. One of the roles of Singapore’s Monetary Authority (MAS) is ensuring the nation retains that status, but in its first Guidelines on Artificial Intelligence Risk Management for Financial Institutions, published on Wednesday, warns that AI increases risk. “The use of AI can improve performance across business and functional areas but its complexity and probabilistic nature can lead to greater uncertainty, as well as unexpected or more biased behaviour that is harder to identify compared to the use of simpler methods,” the guidelines state. And that’s MAS’s view of old-school AI: it rates generative AI as even riskier. …