Home Fintech MAS: Threat of Synthetic Intelligence “Herding” Merchants Nonetheless Low in Singapore

MAS: Threat of Synthetic Intelligence “Herding” Merchants Nonetheless Low in Singapore

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MAS: Threat of Synthetic Intelligence “Herding” Merchants Nonetheless Low in Singapore

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The danger of “herding” in buying and selling platforms on account of the usage of AI fashions continues to be low as monetary establishments (FIs) in Singapore are nonetheless at a nascent stage of utilizing AI fashions for decision-making, says the Financial Authority of Singapore (MAS).

Herding is the place people make comparable selections on account of comparable skilled AI fashions or comparable information aggregates.

The difficulty was introduced up in a parliamentary query on the potential for battle of curiosity when a buying and selling AI platform system is contemplating each the platform’s curiosity and the purchasers’ pursuits, particularly if with out disclosure to clients.

Lawrence Wong, Deputy Prime Minister and Minister for Finance, and Chairman of MAS responded saying that it requires regulated FIs to have controls in place to keep away from or mitigate conflicts between their pursuits and people of their clients. This method is technology-neutral and is utilized throughout all regulated FIs.

Lawrence Wong

Lawrence Wong

He added,

“However, MAS continues to rigorously monitor and assess the dangers led to by AI in monetary markets. Lately, MAS has labored with the business to develop a framework which permits FIs to guage their AI techniques towards the FEAT Rules. MAS will proceed to interact the business on the accountable use of AI in finance.”

The regulator had launched the FEAT Rules as early as 2018 to information FIs’ accountable use of AI and information analytics of their services and products. The acronym stands for Equity, Ethics, Accountability, and Transparency.

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