Author: Zhang Feng
In today's world where artificial intelligence technology is sweeping through the financial industry, the Consultation Paper on Artificial Intelligence Risk Management, released by the Monetary Authority of Singapore (MAS) on November 17, 2025, serves as a timely map, guiding financial institutions navigating the wave of innovation safely. This document is not only the world's first full-lifecycle risk management framework for AI applications in the financial sector, but also represents a crucial shift in regulatory thinking from "principle advocacy" to "operational implementation." For any company involved in the Singapore market, a deep understanding and systematic implementation of this Guideline has transformed from an "optional" to a "mandatory" task.

I. Understanding the Core of the Guidelines: Seeking a Delicate Balance Between Innovation Incentives and Risk Prevention
The creation of the Guidelines stems from a profound regulatory understanding: AI is a double-edged sword. While generative AI, AI agents, and other technologies have shone brightly in scenarios such as credit, investment consulting, and risk control, they have also brought unprecedented risks such as model "illusions," data poisoning, supply chain dependence, and loss of control over autonomous decision-making. If these risks are not restrained, the chain reaction they trigger may far exceed that of traditional financial crises.

I. Understanding the Core of the Guidelines: Seeking a Delicate Balance Between Innovation Incentives and Risk Prevention
The creation of the Guidelines stems from a profound regulatory understanding: AI is a double-edged sword. While generative AI, AI agents, and other technologies have shone brightly in scenarios such as credit, investment consulting, and risk control, they have also brought unprecedented risks such as model "illusions," data poisoning, supply chain dependence, and loss of control over autonomous decision-making. If these risks are not restrained, the chain reaction they trigger may far exceed that of traditional financial crises.