Singapore adopts cautious AI policy, learns from crypto woes

Singapore’s Monetary Authority (MAS) is advancing cautiously in the realm of artificial intelligence (AI), informed by previous challenges faced with digital currencies. MAS executive Sopnendu Mohanty underscored the importance of a deliberate approach as the country navigates its burgeoning AI landscape, emphasizing the need for stringent regulatory measures to foster economic growth alongside technological innovation.

Despite attracting over ten billion dollars in investments this year, Singapore is keen on avoiding past pitfalls experienced with entities like Terra and Three Arrows Capital (3AC). In response to such crises, MAS enforced regulations requiring digital currency businesses to secure customer funds in statutory trusts, enhancing financial stability and maintaining trust amidst rapid technological changes.

The use of AI applications such as ChatGPT and Bard is on the rise among Singaporeans, reflecting a youthful and tech-savvy population. MAS is focused on leveraging AI to improve productivity across various sectors, including finance and manufacturing, while also addressing risks such as money laundering. However, there are growing concerns about privacy, misinformation, and potential job losses due to increased automation.

MAS’s balanced strategy aims to cultivate a sustainable AI infrastructure that supports long-term economic growth. By establishing a robust regulatory framework that prioritizes consumer protection and societal welfare, Singapore intends to manage stakeholder protection while harnessing AI’s transformative potential responsibly.

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