First Meeting of Financial AI Activation Working Group... Financial Services Commission "Plan to Prepare Measures by Year-End"

Focus on Regulatory Improvement, Infrastructure, and Consumer Protection to Promote AI Activation in the Financial Sector

[Asia Economy Reporter Kangwook Cho] A public-private joint meeting to establish measures for activating artificial intelligence (AI) in the financial sector was held for the first time.

On the 16th, the Financial Services Commission announced that it formed a working group consisting of companies and academia and held the first meeting (Kick-off) to prepare measures for activating AI in the financial sector.

The working group, which includes financial authorities as well as AI specialized companies, fintech, financial institutions, and academic officials, plans to develop concrete measures through meetings until the end of the year.

The working group held its first meeting at the Bankers' Hall in Jung-gu, Seoul, discussing domestic and international cases of AI utilization in the financial sector, policies, and organizational operation directions. The goal of the working group is to establish AI activation policies in the financial sector in line with the government's 'Digital New Deal.'

In particular, the financial sector is expected to see significant effects from AI introduction as data utilization is active in credit evaluation, loan screening, insurance underwriting, and asset management. AI is expected to enable financial services to be provided at lower costs and allow more sophisticated screening, thereby enhancing the efficiency, inclusiveness, and reliability of finance. For example, there is an AI-based auto insurance compensation service that automatically calculates the estimated repair cost by analyzing photos of accident vehicles.

The working group will be divided into four subcommittees to discuss ▲ regulatory improvement and establishment of governance systems for AI activation, ▲ infrastructure construction for promoting AI development in the financial sector, ▲ establishment of consumer protection systems related to AI utilization, and ▲ integration of AI with RegTech and SubTech.

First, they will identify regulatory improvement measures that hinder the activation of AI financial services and prepare practical processes specialized for AI financial service development in the form of guidelines. For example, they will create a 'Financial Sector Artificial Intelligence Practical Guideline' that regulates the use of pseudonymized information (information that can identify an individual to some extent when combined with other information) and the copyright holders of AI algorithms. Additionally, in cooperation with the Ministry of Science and ICT's AI Legislation Task Force, they plan to prepare ethical guidelines for AI in the financial sector.

Along with this, to enable financial companies and fintech firms to smoothly secure data necessary for AI development, they will build a data infrastructure called the 'Financial Sector AI Data Library' and promote the establishment of an AI testbed (testing system) to support smooth AI research and development.

The Financial Services Commission plans to operate the working group and simultaneously conduct policy research services to discover policy tasks related to AI activation in the financial sector by November.

This content was produced with the assistance of AI translation services.