Generative Artificial Intelligence (GenAI) is transforming the financial services industry as regulatory interest and scrutiny of the technology is growing, according to Deloitte’s Asia Pacific Centre for Regulatory Strategy (ACRS) ‘Generative AI: Application and Regulation in Asia Pacific’ report.
Based on the interview of 12 Deloitte experts, both technology and regulatory specialists, across the Asia Pacific, transparency, accountability, fairness, robustness, privacy, and data security remain considerations in the financial services sector. Moreover, bias, governance, accountability, data protection across the AI lifecycle, and regulatory and strategic risk may disrupt the industry.
"Although AI regulation and legislation is still in the initial stages of development or implementation in most jurisdictions, it is crucial for financial services firms to take a measured approach by establishing their own AI governance framework as early as possible and by taking action to understand, identify and manage AI-related risks,” Akihiro Matsuyama, risk advisory leader at Deloitte Asia Pacific said.
The study recommends the financial services sector become future-ready by preparing for GenAI regulation and starting to develop an AI governance framework.
Deloitte recommends financial services firms evaluate customers based on educational background, income, or age, which safeguards GenAI applications from bias or discrimination. The sector should also ensure data privacy and copyright protection to prevent intellectual property exposure.
According to Deloitte, adopting GenAI applications should go hand-in-hand with talent acquisition and AI skills training to raise awareness of the risks and responsibilities of GenAI usage.