Singapore MAS Guidelines on Artificial Intelligence Risk Management (2026) 5.12-5.13: Select AI systems, models and features against the objectives and risks of the use case, documenting the trade-offs between performance, complexity, fairness and explainability in proportion to materiality, with domain expert or user review, and weigh the heightened risks of newer, less understood systems against the FI's ability to mitigate them

What does 5.12-5.13 require?

When selecting AI systems, models (including specific techniques) or features, an FI considers the objectives and risks of the use case and documents its considerations in proportion to materiality, particularly when choosing more complex or less understood options over simpler or conventional ones, balancing the needs and performance requirements of the use case against complexity, fairness, transparency and explainability, drawing on research or accepted industry practice where relevant, and incorporating reviews by domain experts or users from the relevant business lines so that the selection fits the context. Where newer, more complex and less understood systems or models are selected, the FI weighs their benefits carefully against new or heightened risks such as hallucination, opaqueness and security risk, and against its own capability to mitigate them.