Artificial intelligence isn't just a buzzword in finance – it's a fundamental shift. From streamlining operations to revolutionizing investment strategies and even reshaping credit assessments, AI’s influence is rapidly expanding, becoming deeply woven into the fabric of the financial world.
The Bangko Sentral ng Pilipinas (BSP) recognizes this transformative power, already utilizing generative AI in its own policy development. Their vision extends to fostering a secure and reliable AI ecosystem for the entire Philippine financial industry, a goal that acknowledges both the immense potential and inherent risks.
While the BSP has been actively researching and consulting on AI’s implications since early 2025, formal regulations are still forthcoming. The central bank understands that widespread AI adoption demands careful consideration and proactive mitigation of potential downsides.
Key to the BSP’s planned regulations are three core principles: ensuring ethical AI deployment, actively managing algorithmic bias, and relentlessly pursuing improvements in AI accuracy. Existing cybersecurity, data privacy, and technology risk management rules will be supplemented by these new guidelines, focusing on clarifying ethical boundaries.
Expect increased scrutiny on the quality of data fed into AI systems, with regular monitoring and a requirement for demonstrable support or challenge of AI-generated outputs. Financial institutions may be asked to categorize services based on risk levels – particularly concerning bias and discrimination – and implement more intensive human oversight for high-risk areas.
Impact assessments, comprehensive AI policies, robust governance frameworks, and transparent communication with customers will likely become standard requirements. A particularly telling test will be the implementation of “human-in-the-loop” systems, where human judgment remains crucial in critical decisions like credit approvals.
Companies preparing for these changes should revisit BSP Circular No. 1153, Series of 2022, which outlines a Regulatory Sandbox Framework for assessing AI-enabled products. Examining existing BSP Manuals on IT risk management, National Privacy Commission advisories, and even international guidelines like the ASEAN Guide on AI Governance and the EU AI Act will prove invaluable.
The EU AI Act, for example, already prohibits financial institutions from using AI for practices like social scoring and biometric categorization, offering a glimpse into potential future restrictions. Staying ahead of these evolving standards will be crucial for navigating the new landscape.
Successfully integrating AI into the financial sector isn’t simply about adopting new technology; it’s about building a responsible, ethical, and trustworthy system that benefits both institutions and the people they serve.
