The Monetary Authority of Singapore has released a set of principles promoting fairness, ethics, accountability and transparency (FEAT) in the use of artificial intelligence (AI) and data analytics in finance.
The FEAT principles seek to guide financial firms on the responsible use of AI and data analytics and to strengthen internal governance around data management and use, according to a statement by the regulator. This will foster greater confidence and trust in the use of AI and data analytics, which are seeing increased application in supporting business strategies and in risk management.
To develop these principles, MAS worked closely with a group of senior industry partners by forming a FEAT committee. The principles also incorporated views and feedback from financial institutions, industry associations, fintech firms, technology providers, and the academe. The committee was co-chaired by MAS chief data officer, Dr David Hardoon, and Hsieh Fu Hua, co-founder and advisor of PrimePartners.
“The FEAT principles lay the foundation for a thriving AI and data analytics ecosystem,” Hardoon said. “As the financial industry harnesses the potential of AI and data analytics on an increasing scale, we need to be cognisant of using these technologies in a responsible and ethical manner. The FEAT principles are a significant first step that MAS has taken with the industry. I would also thank the FEAT committee members for their invaluable contribution towards this process.”
“The FEAT principles will be very useful as the financial industry continues to innovate,” Hsieh said. “It is important to have a common set of principles to refer to as an industry benchmark and guide when thinking about how to use AI and data analytics in a responsible and ethical way. I am confident that the industry will endeavour to put these principles into practice when developing or implementing internal governance around the use of these technologies.”