The Monetary Authority of Singapore (MAS) has concluded the first phase of the Veritas initiative, which involves the development of the fairness assessment methodology in credit risk scoring and customer marketing.
The first phase involves two use cases to help financial institutions validate the fairness of their Artificial Intelligence and Data Analytics (AIDA) solutions according to the Fairness, Ethics, Accountability and Transparency (FEAT) principles, the regulator said in a statement. MAS has published whitepapers on the fairness methodology as well as the open source code of the two use cases.
Read more: Singapore to work with financial firms to ensure responsible use of AI
In the initiative’s second phase, it will tackle the Ethics, Accountability and Transparency assessment methodology, as well as use cases for the insurance industry.
For insurance, the consortium will focus on the fairness assessment methodology for predictive underwriting, and develop the ethics and accountability assessment methodology for fraud detection.
According to MAS, fairness is a key consideration in the course of underwriting for insurance companies. Meanwhile, due to traditional fraud detection being quite resource-intensive, insurance companies can harness AIDA to improve their capabilities in detecting and combating fraud.
“Veritas Phase One enabled us to look into the fairness of artificial intelligence and data analytics systems in a more granular manner,” said Sopnendu Mohanty, chief fintech officer of MAS. “It will improve the trustworthiness of AIDA significantly. We will continue our Veritas journey and aim to establish Singapore as a responsible artificial intelligence hub for the financial services in the near future.”