As artificial intelligence becomes more integrated into financial services, regulators worldwide are stepping up efforts to define how it should be governed, especially when used in decisions that affect access to capital insurance or financial advice.

Let's start with a quick overview of key regulations shaping the AI landscape in finance.

The EU AI Act is the world's first comprehensive AI regulation.

It classifies financial AI systems like credit scoring and algorithmic trading as high risk requiring transparency, human oversight and technical documentation.

The general data protection regulation in the EU includes provisions on automated decision making, mandating that customers have a right to explanation, and in some cases a human review.

In the US Fair lending laws like the Equal Credit Opportunity Act prohibit discriminatory outcomes in credit, regardless of whether they stem from human judgment or machine learning.

And in Asia, the monetary authority of Singapore issued defeat principles, fairness, ethics, accountability, and transparency designed to guide financial institutions on the responsible use of AI and data analytics.

These frameworks tend to evolve on an ongoing basis, but they also tend to converge around a shared goal.

Ensuring AI in finance is not only effective, but ethical and accountable.