The Office of the Superintendent of Financial Institutions (OSFI) and the Global Risk Institute (GRI) jointly published a report April 17, on the ethical, legal and financial implications of artificial intelligence (AI) for financial services institutions.
After creating the partnership, OSFI and GRI convened the Financial Industry Forum on Artificial Intelligence (FIFAI), a panel of financial services and AI experts who met in a series of four workshops to discuss support for safe AI development.
“The rapid growth in digitalization and usage of AI across the financial services industry highlighted how current AI risk management frameworks must adapt to remain relevant, forward-looking and responsive to industry needs,” the organizations state in an announcement about the publication of the report, Financial Industry Forum on Artificial Intelligence: A Canadian Perspective on Responsible AI. “As the use of AI technologies continues to evolve, the need for guiding principles became apparent. The FIFAI discussions then led to the development of EDGE principles – Explainability, Data, Governance and Ethics.”
The report itself points out that data and governance are already part of institutional frameworks and have been for years, while explainability and ethics have only more recently come to the forefront.
OSFI’s superintendent of financial institutions, Peter Routledge says “recent advances in machine learning represent a great opportunity for financial organizations. However, balancing regulation and innovation is essential.”
The report, a summary of the FIFAI workshop discussions, says capabilities and usage have evolved faster than regulation. It adds that an enhanced Enterprise Model Risk Management Guideline will be released for draft public consultation later in 2023.
