The Monetary Authority of Singapore (MAS) has released new guidelines to ensure responsible adoption of artificial intelligence (AI) by financial institutions (FIs). Announced on 7 October 2026, these guidelines aim to help FIs manage AI-related risks effectively, allowing them to tailor their approaches based on their specific risk profiles.
AI technologies are rapidly evolving and increasingly used in financial services, prompting regulators to emphasise the importance of managing associated risks. Following a public consultation in November 2025, MAS has refined its guidelines to address feedback from industry stakeholders. The guidelines require FIs to manage AI risks at both enterprise and individual use case levels, strengthening oversight and building capabilities for responsible AI use.
Key expectations include strengthening AI risk oversight, identifying and managing AI risks throughout its lifecycle, and managing risks from third-party AI use. FIs are encouraged to apply these guidelines in a risk-proportionate manner, using existing governance structures where possible. The guidelines will be implemented in phases, starting from 7 October 2027.
Deputy Managing Director Ho Hern Shin highlighted AI’s potential to enhance financial services, stating, “Realising these benefits sustainably requires financial institutions to understand and manage the risks that come with increasingly capable AI systems.” She added that the guidelines provide regulatory clarity, enabling FIs to innovate confidently whilst maintaining customer trust and system resilience.
The guidelines are part of MAS’s ongoing efforts to promote sound AI risk management practices in Singapore’s financial sector.
