FSB consults on sound practices for responsible adoption of AI

The Financial Stability Board (FSB) has published a consultation report on sound practices for responsible adoption of AI. The report sets out 12 sound practices aimed at supporting financial institutions in managing AI-related risks while enabling innovation. The proposed practices are structured around three core areas: (i) organisation-wide AI governance (practices 1–4); (ii) risk management and mitigation across the lifecycle of AI development and deployment (practices 5–10); and (iii) management of AI-related cyber, information and communication technology, and third-party risks (practices 11–12).

The practices are intended to complement existing international standards and promote cross-border coordination and information-sharing, rather than impose prescriptive requirements or create new regulatory obligations. Financial institutions' boards and senior management are encouraged to consider these practices when shaping strategy, technology adoption and risk management. The deadline for feedback is 22 July, with a final report expected in October.

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