Deployment Of Ai In Banking: Comparison Of Russian And Singaporean Approaches

Abstract

Artificial Intelligence technologies are widely accepted and are being used in banking globally. The main sphere of its implementation is the information security. The current situation of regulation of AI technologies in Russia and Singapore is being considered. Relevant government initiatives and regulatory instruments are characterized. The role of the financial regulators in processes of artificial intelligence deployment is being determined. A few general scientific (system-structural, formal-logical and hermeneutic methods) and special legal methods of cognition (comparative legal and formal-legal methods) are being used. The Russian approach to AI regulation put the public authorities in the centre of mechanism. In Russia as well as in Singapore the legal basis of AI deployment comprises numerous sector-oriented rules, but the special legal act on AI use is still absent. The same situation is in banking sector – only national financial regulators are responsible for development and implementation of regulations and standards in the sphere of informational security and AI use. But the Monetary Authority of Singapore is a step ahead of the Russian financial regulator after issuing the guideline on the use of AI and data analytics (FEAT Principles), which is being followed by financial and banking institutions. This instrument helps to ensure the unified approach within the industry and to minimise risks emerging from the use of AI.