FSB Outlines 12 Practices for Responsible AI Adoption
The Financial Stability Board has issued its final report outlining 12 non-binding practices for AI adoption, including human oversight, explainability, and third-party dependency risks.
The Financial Stability Board (FSB) published its final report setting out 12 non-binding sound practices to help financial institutions leverage artificial intelligence and manage its risks responsibly, supporting the resilience of the financial system.
The 12 practices are divided into two groups: four practices emphasizing the importance of enterprise-wide AI governance, and eight practices outlining a comprehensive framework for risk management throughout the AI lifecycle from development to deployment.
The practices include effective human oversight, explainability, and managing third-party AI dependency risks, along with selecting appropriate technologies, data governance, evaluating use-case performance, and managing cybersecurity risks.
Reuters and MLX reported that the final text strengthened recommendations regarding agentic AI and removed a draft proposal that treated AI as a "virtual employee." The Board stated it would continue monitoring developments and updating practices as necessary.
What do these terms mean?
Financial Stability Board (FSB): An international body that coordinates among national financial authorities and standard-setters to safeguard the stability of the global financial system.
Agentic AI: AI systems capable of executing multiple steps and tasks on behalf of the user with a degree of autonomy.
Explainability: The ability of an institution to explain how an AI model reached a specific decision or outcome.
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