FSB finalises sound practices for the responsible adoption of AI

The Financial Stability Board (FSB) has published its final report on sound practices for responsible adoption of AI, following its consultation in June. The report identifies 12 sound practices to help financial institutions harness the benefits of AI while managing its risks responsibly, in ways that support the resilience of the financial system. The principles 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 sound practices serve as a practical toolkit that financial institutions can tailor to their specific context and risk profile and integrate into existing frameworks, including those for cyber and third-party risk. The report includes case studies illustrating the benefits reported by financial institutions and how some sound practices have been applied proportionately.

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