In order to encourage financial institutions to harness technology effectively with responsible innovation at its core and to employ trustworthy artificial intelligence (AI) in the development of financial services that better meet public needs, while guiding the financial industry to actively adopt technological innovation in a way that gives balanced consideration to consumer rights, ethical standards, and financial market order, the Financial Supervisory Commission (FSC) has formulated a draft document based on the "Core Principles and Policies for AI Applications in the Financial Industry" published on October 17, 2023. This draft document was prepared by referencing AI guidelines issued by financial regulators of major countries and international organizations, and is titled "Guidelines for AI Applications in the Financial Industry" (hereinafter referred to as the draft). Today, the FSC has published this draft on the public policy participation platform "JOIN" to solicit external feedback. All stakeholders are welcome to provide their suggestions on the platform within the next 60 days.

This draft consists of “General Provisions” and six main chapters. The “General Provisions” section primarily outlines common considerations such as AI-related definitions, the AI system life cycle, risk assessment frameworks, a risk-based approach to implementation of the core principles, and the supervision of third-party entities. The six main chapters respectively illustrate recommended measures for implementing the six core principles in the financial industry based on the assessed risks in the AI life cycle. Each chapter includes the purpose, key concepts, relevant considerations for each principle, and suggested approaches or measures for implementation. Given the highly interconnected nature of these core principles, financial institutions referring to this draft for the adoption and utilization of AI systems are advised to holistically assess the feasibility of the proposed measures to facilitate complete control over risks.

This draft primarily provides considerations for financial institutions when adopting or utilizing AI and falls under the category of administrative guidance. This draft aims to encourage financial institutions to adopt, use, and manage AI in a risk-controlled environment and emphasizes that financial institutions should consider their own business and the application of AI, referring to the reminders outlined in this draft to implement the six core principles. In the future, if financial industry associations establish self-regulatory standards for AI usage, they can incorporate relevant key considerations and measures from this draft. In cases where no specific self-regulatory standards are established, financial institutions can refer to this draft for the adoption, utilization, and management of AI systems.

The FSC has held numerous internal and external meetings to formulate this draft, incorporating opinions from experts, scholars, various financial industry associations and the FinTech Space. To further refine and align the guidelines with practical operations, the draft has been released on the "JOIN" platform to gather extensive external feedback. After considering this feedback, the finalized version will be officially released for financial institutions to comply with.