The Monetary Authority of Singapore (MAS) has wrapped up the first phase of Project MindForge, an initiative aimed at creating a risk framework for the use Generative Artificial Intelligence (Gen AI) in the financial sector.
MAS had released an executive summary of the findings, with a full whitepaper set to be published in January 2024.
Project MindForge was first announced by Heng Swee Keat, Deputy Prime Minister and Coordinating Minister for Economic Policies, at the Point Zero Forum in June this year.
Gen AI holds the potential to revolutionise the financial industry while also introducing new challenges such as cybercrime, copyright issues, data risks, and biases.
Project MindForge focuses on exploring both the risks and opportunities associated with Gen AI in finance. Its objectives are to establish a clear framework for responsible Gen AI use and drive innovation in the financial sector.
The project has support from a consortium comprising major institutions such as DBS Bank, OCBC Bank, United Overseas Bank Limited, Standard Chartered Bank, Citi Singapore, HSBC, Google Cloud, Microsoft, MAS, Accenture, and the Association of Banks in Singapore.
During phase one, the consortium crafted a comprehensive Gen AI risk framework that encompasses seven risk dimensions, including accountability, governance, transparency, fairness, legality, ethics, and cybersecurity.
Source: Emerging Risks and Opportunities of Generative AI for Banks
This framework aims to guide financial institutions in the responsible implementation of Gen AI technology. Additionally, MAS created a Gen AI reference architecture, offering a blueprint for organisations to build robust Gen AI capabilities.
Moving forward, the consortium intends to explore practical use cases for Gen AI in the financial industry, such as aiding in complex compliance tasks and identifying interconnected financial risks.
Project MindForge will also broaden its scope to include financial institutions from the insurance and asset management sectors, seeking to refine and expand the Gen AI risk framework to cover the entire financial landscape.
The consortium plans to conduct experiments in areas like anti-money laundering, sustainability, and cybersecurity to further harness the potential of Gen AI.
Sopnendu Mohanty
Sopnendu Mohanty, Chief Fintech Officer, MAS said,
“As the financial industry continues to explore the potential of Generative AI technology, it is crucial that we develop a clear and concise framework for its responsible application.
MindForge aims to address common challenges and catalyse AI-powered innovation in the financial industry, while ensuring that this technology is used in a responsible and sustainable manner.”
