Regulatory Alerts2026-06-24
Governance Principles for Artificial Intelligence (AI) in Financial Services
The Bangko Sentral ng Pilipinas (BSP) has issued a guidance paper titled "Governance Principles for Artificial Intelligence (AI) in Financial Services" to assist all BSP-supervised financial institutions (BSFIs) in developing their AI governance policies and risk management frameworks. This paper recommends BSFIs formally establish their own proportionate AI Governance Frameworks, adhering to the STARS principles: Sustainability, Transparency, Accountability, Responsibility (Social Fairness), and Security, to manage risks associated with AI adoption. These principles, which provide minimum supervisory expectations for AI adoption, are non-binding and voluntary, covering BSFIs and their outsourced service providers while promoting ethical and responsible AI use.