February 12, 2024 Organization

Montréal – The Autorité des marchés financiers (the “AMF”) today published an issues and discussion paper entitled Best practices for the responsible use of AI in the financial sector, for the purpose of engaging in an open dialogue about the opportunities and issues associated with the use of artificial intelligence (AI) in the industry.

“Artificial intelligence carries very significant benefits for the financial sector and consumers, but it also brings with it new and complex risks and issues that should be of concern to all industry players,” said AMF President and CEO Yves Ouellet. “The responsible use of AI is one of the major challenges of the coming year and meeting it draws on our ability to work together to maintain a financial sector that warrants public confidence.”

Invitation to all financial stakeholders

To stimulate discussion and reflection with Québec financial players, the AMF outlines 30 best practices for the responsible use of AI that draw from ethical principles and legislative and regulatory projects put forward in a number of jurisdictions. These practices relate to consumer protection, transparency for consumers and the public, the appropriateness of AI systems, AI design and use oversight, and the management of AI-associated risks.

The purpose of this document is not to implement a new framework or modify an existing one. None of the proposed practices constitute a new obligation for financial institutions and other players in the financial sector. Rather, the AMF is seeking input from industry players on the opportunities and challenges involved in deploying AI in the financial sector. The results of this initiative will inform future work by the AMF to enhance existing or develop new frameworks, as needed, so that the risks involved are clearly understood and properly managed.

In this call for collaboration, Québec financial players are invited to request a meeting with the AMF contact persons so that they can submit their comments and answers before June 14, 2024. The AMF will also be organizing round tables and discussion forums in the coming months in order to obtain additional feedback and deepen understanding and reflection on the use of AI in the financial sector.

AMF work relating to AI and the digital transformation

• Since 2016, the AMF has undertaken various initiatives relating to the digital transformation of the financial sector to, in particular, anticipate regulatory and consumer protection issues.
• In 2021, it signed the Montréal Declaration for responsible AI development This link will open in a new window and published the paper Artificial intelligence in finance – Recommendations for its responsible use (pdf - 32 MB)This link will open in a new windowUpdated on March 8, 2022The accelerating digital transformation in the financial services industry is resulting in major changes in the processes of many businesses. Technological innovations such as advanced analytics and artificial intelligence (AI) are being deployed at a rapid pace and are contributing to an increase in the number of options available to consumers. Moreover, access to big data on consumer profiles and patterns means it is now possible to pinpoint the needs of consumers more precisely and to offer them personalized financial products and services. Although this profound transformation is yielding tangible benefits, it is also bringing to light significant.
• In 2023, it contributed to the réflexion collective sur l’encadrement de l’intelligence artificielle au Québec This link will open in a new window (collective reflection on the regulation of artificial intelligence in Québec), an initiative led by the Conseil de l’innovation du Québec to identify issues and opportunities presented by AI with a view to ensuring its ethical and responsible development and use.

In its role as regulator, the AMF works to maintain a financial sector that is dynamic, operates with integrity and warrants public trust. It regulates, in whole or in part, activities in the following sectors: insurance, securities and derivatives, distribution of financial products and services, deposit institutions, mortgage brokerage and credit assessment.

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