The Monetary Authority of Singapore will hold bank board members and senior staff accountable for managing risks associated with the deployment of artificial intelligence.
New AI Risk Management Guidelines outline the central bank’s expectations for overseeing AI risk management. This includes essential systems, policies, procedures, life cycle controls, and the necessary capabilities for AI utilization. The Guidelines address various AI applications and technologies, including Generative AI and emerging developments like AI agents.
The central bank expects bank leadership to actively govern and oversee AI risk management. This involves establishing frameworks, policies, and fostering a culture that supports effective AI risk management. Institutions must also maintain accurate AI inventories and conduct risk assessments that consider factors like impact, complexity, and dependence.
To effectively manage AI risks throughout its lifecycle, banks should implement robust controls related to data management, fairness, transparency, human oversight, third-party risks, evaluation and testing, monitoring, and change management.
Ho Hern Shin, MAS Deputy Managing Director, stated, “The proposed Guidelines on AI Risk Management provide financial institutions with clear supervisory expectations to support them in leveraging AI in their operations. These proportionate, risk-based guidelines enable responsible innovation by financial institutions that implement the relevant safeguards to address key AI-related risks.”
MAS is inviting comments on the proposals from interested parties until January 31, 2026.