Director Grace Chong quoted in ALB article on AI in the Finance Sector

11 Dec 2024

Director Grace Chong was recently quoted on an Asian Legal Business article on AI, “Singapore Leads with Principles-Based Approach to AI in Financial Services”. The article explored the challenges and risks faced by Singapore’s finance industry as it navigates the opportunities and gains AI offers to banks and financial institutions. It also highlighted the efforts of regulators and industry leaders to develop frameworks that balance innovations and risks, including initiatives like MindForge, the AI Governance Handbook, and Singapore’s principles-based model, such as MAS’ FEAT Principles (Fairness, Ethics, Accountability, and Transparency). 
 
According to Grace, “while Singapore’s approach offers flexibility, it may allow for inconsistencies in adherence to ethical AI standards across different institutions”. She identified data privacy, algorithmic transparency, and accountability as key legal and compliance challenges for financial institutions. To address these, Grace emphasised the importance of transparent governance, adherence to Singapore's FEAT Principles, the PDPC Model Governance AI Framework, and the potential use of controlled environments like sandboxes for AI testing. 
 
Grace also noted that such measures will be “crucial for Singapore to maintain its position as a leading fintech hub while ensuring the responsible and ethical use of AI in financial services”. She added, “Establishing standards for algorithmic explainability, data governance, and internal accountability within financial institutions could fortify regulatory frameworks without imposing a rigid compliance burden.” 
 
To read the full article, click here.