The Financial Services Agency has published an AI discussion paper entitled "Current status of AI use in financial institutions and initial summary of issues for promoting its sound use." This document isFinancial Services Agency of JapanIssued by,Use of AI in the financial sectorWhile the use of digital currency in the financial sector is being considered, there are also voices of hesitation about its use due to risks and regulatory issues. Taking into account the "risk of not taking on new challenges" that could lead to being left behind by technological innovation and making it difficult to provide high-quality financial services in the medium to long term, the FSA hopes to see progress in initiatives that lead to increased customer convenience and business efficiency.What AI can do for financial servicesAnd the accompanyingVarious challenges and risksWe have organized the following in detail.AI use cases,The importance of data preparation,Security ConcernsAndThe Need for AI GovernanceIt covers all of the above, and is aimed at both financial institutions and supervisory authorities.Current status and future direction of AI adoptionis shown.
In the report:
Key points regarding the use of AI in the financial sector
- Benefits of Introducing AI
- The use of AI in financial institutions is expected to improve operational efficiency and customer service.
- The rise of generative AI
- Both conventional and generative AI are being used, with progress being made with the introduction of generative AI in particular.
- Current status of AI utilization
- Approximately 90% of financial institutions are using AI to effectively improve customer service and risk management.
- Issue: Data preparation
- Data preparation is an important issue in introducing AI.
- Challenges: Explainability and Fairness
- It is necessary to ensure the explainability and fairness of AI.
- Issue: Personal information protection
- There are concerns about protecting personal information and the risk of AI generating misinformation.
- The Need for AI Governance
- Financial institutions need to quickly establish AI governance rules.
- Role of the Management Team
- Active involvement from management is key to utilizing AI.
- Financial Services Agency Initiatives
- The Financial Services Agency is clarifying AI regulations and strengthening dialogue with businesses.
- Responding to international regulatory trends
- In light of international AI regulations, a review of domestic governance is required.
In addition, as a future policy, the FSA will work to resolve issues related to AI utilization and build governance through public-private collaboration, and promote the sound use of AI in the financial sector.
For details, please see “Notices from the Career Support Office” onFinancial Services Agency pagecan be accessed from
(Appendix 1)AI Discussion Paper (Main Text)
(Appendix 2)AI Discussion Paper
For inquiries, please contact:
Financial Services Agency Tel: 03-3506-6000 (Main)
Fintech Counsellor's Office/Innovation Promotion Office, Risk Analysis Division, Strategy and Management Bureau (ext. 2277)