Navigating AI Risk Management In Financial Institutions In Singapore

On 13th November 2025, the Monetary Authority of Singapore (MAS) issued a Consultation Paper proposing a set of Guidelines on Artificial Intelligence (AI) Risk Management for the financial sector. The consultation is open for feedback until 31st January 2026.

Recent technological advances such as Generative AI and AI agents have increased the use of AI in business processes, interactions with customers and employee workflows. According to MAS, these technologies multiply the known risks related to AI like model error and bias. They also introduce new dangers like hallucinations, prompt injection and data leakage.

With the proposed Guidelines, MAS is moving from high-level responsible AI principles towards clearly articulated standards that can be assessed. These Guidelines are an extension of earlier efforts by MAS to supervise AI risks.