JFSC publish new guidance on the responsible use of AI

The JFSC has published new guidance to help Jersey's financial services firms use artificial intelligence responsibly and with confidence.

The JFSC says

• AI can support innovation, efficiency, and better outcomes for customers. Our guidance explains how existing legal and regulatory obligations apply when firms use AI, and encourages a proportionate approach based on the impact of each use case.
• This guidance 
• Explains how firms can use Artificial Intelligence (AI) responsibly in Jersey’s financial services sector.
• It does not create new requirements. It aims to help firms apply their existing legal and regulatory obligations in a proportionate way. 
• We encourage firms to explore AI. Used responsibly, AI can improve efficiency, automate routine tasks and increase productivity. But AI also brings risks. Firms need to understand those risks and put suitable controls in place. 
• We have designed this to be risk-based and proportionate. For example, 
• Low impact productivity tools only require light touch controls unless they affect regulated activity, customer outcomes, confidential data or regulatory submissions. 
• This guidance will be more necessary for higher impact use cases such as customer onboarding, lending decisions or investment advice.
• The main principle is simple. 
• Firms remain accountable for outcomes when they use AI, just as they do when they use any other technology.
• Where appropriate, firms should include material AI use cases and controls in their business risk assessment.
• Our guidance closely aligns with the OECD AI Principles and guidance issued by international peer regulators.

This guidance is based on five principles:

1. Governance and accountability: Establish clear ownership, oversight and accountability for AI-assisted processes and outcomes. 
2. Cybersecurity, privacy and data quality: Ensure that firms integrate AI into their existing cybersecurity arrangements whilst maintaining data quality and compliance with their data protection obligations. 
3. Regulatory compliance: Ensure AI use is consistent with regulatory obligations and does not weaken compliance outcomes. 
4. Consumer protection and fair treatment: Ensure AI supports fair customer outcomes and does not introduce bias or harm.
5. Transparency and explainability: Be able to explain if asked, to a reasonable degree commensurate with risk and complexity, AI-assisted decisions and outcomes.

Read the guidance in full. https://www.jerseyfsc.org/media/koaltyhh/guidance-on-the-use-of-ai-in-jersey-s-financial-services-sector.pdf

Source

https://www.jerseyfsc.org/industry/guidance-and-policy/guidance-on-the-use-of-ai-in-jersey-s-financial-services-sector/