BSP to issue new rules on unregulated AI risks

The Bangko Sentral ng Pilipinas (BSP) is preparing to issue new regulations aimed at mitigating the potential risks posed by the use of artificial intelligence (AI) in the financial services sector, an official said.

- By KEISHA TA-ASAN

Melchor Plabasan, senior director of the BSP's Technology Risk and Innovation Supervision Department, said the new rules to be released within the first half of this year aim to address gaps in existing regulations that do not yet cover some AI-specific risks.

"We all know that AI is one of the main drivers of the industrial revolution. Our financial institutions are already leveraging AI for hyper-personalization, seamless client onboarding, fraud detection, credit scoring and customer service," he said.

"But AI also introduces new risks that must be managed," he added.