Bermuda Monetary Authority Seeks Feedback on AI Use in Financial Services

The Bermuda Monetary Authority (BMA) has issued a discussion paper titled 'The Responsible Use of Artificial Intelligence in Bermuda's Financial Services Sector.' This paper aims to gather feedback from industry stakeholders on the proposed regulatory framework for AI use in financial services. Stakeholders are invited to submit their responses by September 30, 2025.

The discussion paper outlines the BMA's approach to fostering responsible AI innovation while maintaining financial stability and customer protection. It builds on previous initiatives in the insurance sector and aims to extend regulatory oversight to all financial services sectors in Bermuda. The paper highlights the transformative potential of AI in enhancing efficiency and customer outcomes but emphasizes the need for robust governance to manage associated risks.

The BMA proposes an outcomes-based risk management framework that emphasizes governance and oversight, with accountability resting with the board of directors. The framework includes considerations for data management, model validation, human oversight, and cybersecurity. It also addresses the unique challenges posed by generative AI and agentic AI systems.

The BMA's initiative reflects its commitment to maintaining Bermuda's reputation as a premier financial services jurisdiction by balancing innovation with appropriate regulatory oversight. The feedback from this consultation will inform the development of future guidelines on responsible AI use in Bermuda's financial sector.