Canada’s financial services supervisory regulator, the Office of the Superintendent of Financial Institutions (OSFI), is actively seeking input from federally regulated financial institutions (FRFIs) on their adoption of artificial intelligence (AI) and machine learning (ML) technologies. Additionally, OSFI is inquiring about the level of preparedness of these institutions for the emergence of quantum computing.
In a recent letter to FRFIs, OSFI urged companies to participate in a voluntary questionnaire that aims to understand the implementation of AI/ML and quantum computing within the financial sector. The questionnaire covers a range of topics, including the use of AI in various applications and tools and the potential risks associated with their adoption.
Financial institutions have the opportunity to share their strategies, plans, and challenges related to AI and ML applications, as well as discuss governance and risk management practices. The information gathered from the questionnaire will help OSFI to increase its understanding of FRFIs’ involvement in these technologies, inform regulatory policies, and assess the industry’s current state of readiness for quantum computing.
Once the analysis of the questionnaire results is complete, OSFI will share anonymized best practices with participating institutions, treating all responses confidentially. The regulator also emphasized that it is actively engaging with other regulatory agencies, research centers, and industry practitioners to enhance its approach and effectively supervise emerging risks, including those associated with quantum computing.
OSFI recognizes the potential benefits that quantum computing can bring to the financial sector, ranging from AI/ML applications to fraud detection and portfolio allocation. The adoption of this technology is expected to deliver greater efficiencies in terms of time, effort, and cost.
As the financial sector continues to evolve and embrace technological advancements, regulators are proactively working with industry stakeholders to ensure the responsible and secure integration of AI, ML, and quantum computing into financial operations.
The source of the article is from the blog aovotice.cz