Singapore: Closed the first phase of Project MindForge concerning the development of a generative AI (GenAI) risk framework in the financial sector

On 15 November 2023, the Monetary Authority of Singapore (MAS) closed the first phase of Project MindForge concerning the development of a generative AI (GenAI) risk framework in the financial sector. The Project aims to develop a framework for the responsible use of GenAI in the financial sector as well as investigate potential solutions to industry-wide challenges and enhance risk management. The MAS recognises that while GenAI offers certain advantages to financial institutions, there are also the risks of increased and more tactical cybercrime, copyright infringement, data risk and biases. The Project developed a comprehensive GenAI risk framework in the first phase, where it identified seven risk dimensions, namely accountability and governance, monitoring and stability, transparency and explainability, fairness and bias, legal and regulatory, ethics and impact, and cyber and data security. Further, the Project developed a reference architecture for the use of GenAI in platforms. The Project will, in the second phase, expand to financial institutions from the insurance and asset management industries. In January 2024, the MAS will publish a detailed whitepaper concerning the developed risk framework.