Leveraging artificial intelligence (AI) in financial services will be a key agenda item at the 12th ASEAN Financial Ministers and Central Bank Governors’ Meetings (AFMGM) in Malaysia this April. Global financial services’ spending on AI is projected to increase by 29% CAGR, to reach USD97 billion by 2027. AI’s transformative impact will drive ASEAN countries to accelerate technology adoption and leverage AI to manage risks in the sector.
Singapore has increased AI-driven anti-money laundering measures and launched its national COSMIC platform for sharing financial crime risk data. Indonesia is likewise using cyber-patrols to detect online gambling content, while the Philippines has a private platform that connects local banks to detect fraud. Moreover, the Philippines recently secured industry commitments to leverage AI for supporting financial inclusion initiatives, reflecting the private sector’s optimism about the future of AI in financial services.
There are still AI adoption gaps in the region attributed to legacy system, data quality, human resources capabilities and data privacy concerns. Concerns about ethical related risks are also critical for a sector anchored on public trust. AI-driven credit risk assessments raise fairness concerns, particularly in ASEAN’s diverse populations, as algorithmic pricing may reinforce biases based on location or demographics. ASEAN nations can balance AI innovation with regulation, drawing lessons from best practices like Singapore’s FEAT Principles that ensures responsible AI through human-in-the-loop safeguards.
