In Asia, as in other regions, there’s rapidly-growing adoption of artificial intelligence (AI) in the financial services industry, with more than 60 percent of financial services organizations already accelerating their pace of digitalization in response to the pandemic.
Spending on AI by the financial services sector in the region is estimated to reach $4.9 billion in 2024. Currently, financial services spending in Asia Pacific (excluding Japan) represents 15 percent of the worldwide spending on AI, indicating the significant potential for growth ahead as more financial institutions develop and deploy AI solutions.
In this context of growing AI adoption, we are seeing growing interest from our customers, from regulators, and from other stakeholders in how AI can be deployed responsibly. We’re working with customers and regulators directly, as well as through groups like the Monetary Authority of Singapore’s Veritas consortium. Here are five things we are learning from these engagements.
Spending on AI by the financial services sector in the region is estimated to reach $4.9 billion in 2024. Currently, financial services spending in Asia Pacific (excluding Japan) represents 15 percent of the worldwide spending on AI, indicating the significant potential for growth ahead as more financial institutions develop and deploy AI solutions.
In this context of growing AI adoption, we are seeing growing interest from our customers, from regulators, and from other stakeholders in how AI can be deployed responsibly. We’re working with customers and regulators directly, as well as through groups like the Monetary Authority of Singapore’s Veritas consortium. Here are five things we are learning from these engagements.
- Regulators are encouraging organizations to build on existing regulatory obligations, and have endorsed a principle-based, technology-neutral approach
[/LIST=1]
Financial institutions operate in a highly regulated industry with robust requirements covering outsourced technology use, risk management, and governance. It’s clear that when it comes to the use of AI, financial institutions aren’t operating in a regulatory vacuum. Because of this, we’re seeing clear indications from regulators in Asia that they are not looking to introduce new financial services regulation specific to AI. Rather they are looking to build on existing regulatory frameworks and associated guidance such as data protection, confidentiality and bank secrecy, technology and risk management, and fair lending, among others to ensure that AI is deployed responsibly.
Continue reading: https://cloudblogs.microsoft.com/industry-blog/financial-services/2021/09/09/5-learnings-on-asias-responsible-ai-journey-in-financial-services/
