The Monetary Authority of Singapore (MAS) has announced the successful conclusion of phase one of Project MindForge, which seeks to develop a risk framework for the use of generative artificial intelligence (GenAI) for the financial sector.
The project was first announced by deputy prime minister and coordinating minister for economic policies Heng Swee Keat at the Point Zero Forum on June 26. A whitepaper detailing the risk framework will be published in January 2024.
Project MindForge looks into the risks and opportunities of GenAI for the financial sector. It aims to develop a clear and concise framework on the responsible use of GenAI in the financial industry as well as to catalyse GenAI-powered innovation to solve common industry wide challenges and enhance risk management.
The project is supported by a consortium comprising DBS Bank, OCBC Bank, United Overseas Bank U11 , Standard Chartered Bank, Citi Singapore, HSBC, Google Cloud, Microsoft, MAS, Accenture and the Association of Banks in Singapore.
In phase one, the consortium has developed a comprehensive GenAI risk framework, with seven risk dimensions identified in the areas of 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 will enable financial institutions to use GenAI in a responsible manner. A platform-agnostic GenAI reference architecture was also developed, providing a list of the building blocks and components that organisations can use to create robust enterprise-level GenAI technology capabilities.
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The consortium will also look into developing strong industry use cases that will benefit from the application of GenAI and other AI technologies, including the use of GenAI in managing complex compliance tasks and identifying hidden, interconnected financial risks.
In the next phase, the MindForge consortium will expand its scope to involve financial institutions from the insurance and asset management industries.
"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,” says MAS chief fintech officer Sopnendu Mohanty.
