MAS Partners Industry to Develop Generative AI Risk Framework for the Financial Sector

On November 15, 2023, the Monetary Authority of Singapore (MAS) published a press release to inform that it has concluded the first phase of Project MindForge which centers around the use of Generative Artifical Intelligence (GenAI) in the financial services sector. A corresponding whitepaper is expected for January 2024.
While GenAI offers many benefits to market players and customers alike, such as increased efficiency and tailored client experiences, it also raises concerns about cybersecurity, bias, and copyright issues. Therefore, Project MindForge aims to establish a robust framework for a responsible use of GenAI, thereby tackling and taking account of the noted concerns.
Supported by a consortium of major banks (DBS Bank, OCBC Bank, United Overseas Bank Limited, Standard Chartered Bank, Citi Singapore, HSBC), tech giants like Google Cloud and Microsoft, consultancy firms (Accenture), and industry bodies, the project has now identified seven risk dimensions in the first phase. These cover areas like accountability and governance, monitoring and stability, and legal and regulatory compliance.
Moving forward, the consortium aims to create practical use cases for responsible GenAI use in the financial sector and expand its focus to the insurance and the asset management industries. Furthermore, it plans to evaluate the deployment of GenAI in complex compliance tasks and in areas such as anti-money laundering, sustainability, and cyber security.