On October 17, 2023, the Financial Supervisory Commission (FSC) announced that it had published Core Principles and Policies for AI Applications in the Financial Industry, outlining six core principles and eight supporting policies for artificial intelligence (AI) applications in the financial sector.

The FSC outlines the following six principles:

• establishing internal governance and accountability mechanisms, including protection of consumer rights and effective risk management mechanisms;
• emphasizing fairness and human-centric values;
• safeguarding privacy and customer rights, including respecting customer's choices and providing information on alternative options;
• ensuring system robustness and security, including oversight over third-party providers;
• emphasizing transparency and explainability, including disclosure of information to consumers; and
• promoting sustainable development.

The FSC highlighted the following additional eight supporting policies:

• the establishment of the 'Guidelines for AI Applications in the Financial Industry;'
• the review of relevant regulations and necessary regulatory adjustments;
• the utilization of AI technologies in suptech;
• exchanges and collaborations with international organizations and foreign financial regulatory agencies;
• the encouragement of active participation by the financial sector in AI research, development, and application, as well as the adoption of best practices;
• the assessment of the actual use of AI in the financial industry;
• the requirement for financial industry associations to establish self-regulatory standards and best practices for AI system usage; and
• the oversight of financial institutions to ensure fair treatment of customers and compliance with friendly financial guidelines.

The FSC stated that it will continue to monitor the developments in AI technology and guide the financial industry to balance technological innovations, financial market order, and consumer rights.