The Monetary Authority of Singapore collaborates with industry leaders to create a comprehensive risk framework for the responsible use of Generative Artificial Intelligence (GenAI) in the financial sector.

The Monetary Authority of Singapore (MAS) has successfully completed phase one of Project MindForge, an initiative aimed at establishing a risk framework for the utilization of Generative Artificial Intelligence (GenAI) in the financial sector. The project involves a consortium of key players, including 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.

The whitepaper detailing the GenAI risk framework is scheduled for publication in January 2024, with the executive summary released today. GenAI, a rapidly evolving technology, holds the potential to transform and disrupt the financial sector positively. However, it also presents risks such as sophisticated cybercrime tactics, copyright infringement, data risk, and biases.

Project MindForge focuses on exploring the risks and opportunities associated with GenAI in the financial sector. Its objective is to formulate a clear and concise framework for the responsible use of GenAI, fostering innovation to address common industry challenges and enhance risk management.

In phase one, the consortium developed a comprehensive GenAI risk framework with seven identified dimensions, including Accountability and Governance, Monitoring and Stability, Transparency and Explainability, Fairness and Bias, Legal and Regulatory, Ethics and Impact, and Cyber and Data Security. The framework aims to enable financial institutions to use GenAI responsibly. Additionally, a platform-agnostic GenAI reference architecture was created, providing building blocks and components for organizations to establish robust GenAI technology capabilities.

Moving forward, the consortium plans to broaden its scope to involve financial institutions from the insurance and asset management industries in the next phase. This expansion aims to enhance and extend the GenAI risk framework across the entire financial industry. Experiments will be conducted to explore GenAI applications in areas such as anti-money laundering, sustainability, and cybersecurity.

Project MindForge was initially announced by Mr. Heng Swee Keat, Deputy Prime Minister and Coordinating Minister for Economic Policies, at the Point Zero Forum on 26 June 2023.

Sopnendu Mohanty, Chief FinTech Officer at MAS, emphasized the importance of developing a clear and concise framework for the responsible application of Generative AI technology in the financial industry. Mohanty stated, “MindForge aims to address common challenges and catalyze AI-powered innovation in the financial industry, ensuring that this technology is used in a responsible and sustainable manner. We believe that Project MindForge will contribute to the continued evolution of the financial industry and its responsible adoption of AI.”

Source – MAS