A recent study by Sumsub and the Singapore FinTech Association has highlighted a significant gap in AI governance among Singapore businesses. Whilst 94% of companies are employing or testing multi-step AI systems, only 29% can provide an audit trail to verify AI-driven decisions. This lack of traceability poses risks of operational losses, compliance fines, and damaged customer trust.
The report, titled “Sumsub APAC State of Digital Trust: AI Governance Benchmark,” evaluates businesses on AI autonomy, responsibility, and traceability. It reveals that Singapore’s regulatory environment, although advanced, results in conservative self-assessments by local firms. The Singapore government was the first globally to introduce the Model AI Governance Framework for Agentic AI, setting stringent benchmarks for AI use.
Key findings indicate that 70% of Singapore businesses have guidelines assigning responsibility for AI outcomes, with 40% attributing it to individuals and 30% to teams. Despite this, only 16% have expanded AI systems’ scope or autonomy in the past year, reflecting a cautious approach to AI deployment.
Holly Fang, President of the Singapore FinTech Association, emphasised the need for improved governance, stating, “Our joint survey with Sumsub found that fewer than one in three organisations can produce an audit trail for AI-driven decisions.”
The study underscores the importance of developing robust AI governance frameworks to ensure accountability and trust as AI systems become more autonomous. As Singapore continues to lead in regulatory guidance, businesses are urged to enhance their capabilities to track and verify AI decisions effectively.
