The FSB has released the final version of its report setting out 12 sound practices for the responsible use of artificial intelligence, placing AI governance firmly on the agenda of boards and senior executives across the financial sector.
The final report incorporates public feedback gathered after a consultative draft appeared in June 2026. Its 12 practices are designed to help financial institutions capture the advantages of AI while keeping its risks under control, in a manner that protects the stability of the wider financial system.
The practices fall into two broad groups. The first centres on governance across the whole organisation. It stresses that boards and senior management must ensure AI adoption fits the institution’s strategy, business model and risk appetite, and must oversee that alignment.
It also calls for a governance structure with clearly assigned roles and responsibilities, the inclusion of AI risks within the broader risk management framework alongside thorough documentation of how AI is used, and an ongoing commitment to learning and adapting.
The second group provides a full framework for handling risk across the AI lifecycle, spanning development through to deployment.
Its focus areas include systematic assessment of the materiality and risks of each AI use case, both at the outset and on an ongoing basis, careful choice of AI technologies, sound data governance, and the explainability of different AI types along with any compensating controls.
It also covers measuring how AI use cases perform, ensuring meaningful human oversight, managing cyber and information and communication technology (ICT) risks linked to AI, and controlling exposure to third-party AI providers.
Rather than imposing a rigid template, the FSB presents the practices as a hands-on toolkit. Institutions can adapt them to their own circumstances and risk profiles and fold them into frameworks already in place, such as those governing cyber and third-party risk. Case studies within the report show the gains financial institutions say they have achieved and demonstrate how certain practices have been applied in a proportionate way.
Beyond individual firms, the practices seek to encourage collaboration and the exchange of information between financial institutions, supervisors and other stakeholders, both domestically and internationally.
They draw on existing and ongoing work by the FSB and other standard-setting bodies and are broadly consistent with it. The FSB has committed to tracking how AI technologies and their applications develop, and will revise the practices where needed to keep supporting safe and responsible adoption.
Copyright © 2026 RegTech Analyst
Copyright © 2026 RegTech Analyst
