"Banks are expected to carry out good IT risk governance and management in the process of adopting the technology," executive head for banking supervision at the OJK, Dian Ediana Rae, said here on Monday.
He noted that the potential for the misuse of AI, which could harm bank consumers, is quite high. Some of the identified AI risks include algorithm bias and deepfakes.
Despite the significant benefits that AI is expected to bring, it has been deemed necessary for the banking industry in Indonesia to understand the working mechanisms of AI so that it can be widely utilized while still anticipating any risks that may emerge.
Currently, AI implementation is still diverse in Indonesia due to differences in business models, use of technology, human resources, financial conditions, and organization among banks in the country.
To ensure that AI implementation by banks is responsible, fair, transparent as well as in compliance with ethics, the OJK is currently creating AI governance guidelines for the banking industry.
AI has been utilized by banks in several fields, for instance, chatbot/voice assistance, document processing, transaction monitoring, fraud, and money laundering detection, as well as decision engines to support the credit scoring process.
The utilization of AI has had a positive impact on bank operations, especially in terms of improving efficiency through automation.
The OJK has issued OJK Regulation Number 11 of 2022 on the Use of Information Technology by Commercial Banks and OJK Regulation Number 21 of 2023 concerning Digital Services by Commercial Banks.
They stress that the adoption of information technology in digital services by banks must be carried out in a responsible manner.
"Of course, in carrying its supervisory function, the OJK will continue to monitor banks' compliance with the provision and other related provisions," he said.
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Translator: Martha Herlinawati, Raka Adji
Editor: Azis Kurmala
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