New AI Risk Management Guidelines set out the central bank’s supervisory expectations on oversight of AI risk management, key AI risk management systems, policies and procedures, key AI life cycle controls, as well as capabilities and capacity needed for the use of AI.The Guidelines cover different AI applications and technologies, including Generative AI, as well as newer developments such as AI agents. The central bank expects bank board members and senior management to play a key role in the governance and oversight of AI risk management, including the establishment and implementation of frameworks, structures, policies and processes for AI risk management, and fostering the appropriate risk culture for the use of AI.The centm, maintain accurate and up-to-date AI inventories, and implement risk materiality assessments that factor impact, complexity and reliance dimensions.To manage the risks of AI throughout its lifecycle, banks will need to implement robust controls in key areas such as data management, fairness, transparency and explainability, human oversight, third-party risks, evaluation and testing, monitoring and change management. Ho Hern Shin, MAS deputy managing director, says: “The proposed Guidelines on AI Risk Management provide financial institutions with clear supervisory expectations to support them in leveraging AI in their operations. These proportionate, risk-based guidelines enable responsible innovation by financial institutions that implement the relevant safeguards to address key AI-related risks.”MAS is inviting interested parties to submit their comments on the proposals by 31 January 2026.