The Monetary Authority of Singapore (MAS) will develop fairness metrics in credit risk scoring and customer marketing, under the first phase of its «Veritas» initiative.
UOB and Element AI will develop the metrics on credit risk scoring, which aims to ensure that AI-driven decisions do not systematically disadvantage any particular individuals or groups when determining the credit risk scoring.
At the same time, HSBC, IAG Firemark Labs and Gradient Institute will develop the metrics on customer marketing, which aims to ensure AI solutions recommend the right product to the right customer at the right time, given the increasing scope to use AI tools to analyze customer data and match products or services to customers, MAS said in an announcement on Thursday.
Responsible AI
«The responsible use of AI is a prerequisite for the greater adoption of AI in the financial sector. Veritas is the first industry-wide collaboration to provide a mathematical way to validate AIDA solutions against the principles of Fairness, Ethics, Accountability and Transparency,» Sopnendy Mohanty, MAS chief fintech officer, said in the statement.
«While artificial intelligence brings significant benefits to the financial sector, maximizing its potential will require the financial ecosystem to concurrently advance the responsible use of this technology,» Amol Gupte, ASEAN head and country officer for Singapore, Citi, said in comments to finews.asia.
The bank is among the eight new members of the Veritas consortium, which now has 25 financial institutions and related entities. The consortium will publish a white paper documenting the metrics and release an open-source code to enable financial institutions to adopt the fairness metrics in these two areas by the end of this year, the announcement said.
