Financial Industry Rallies Around Open AI Standards
Financial Industry Rallies Around Open AI Standards
FINOS Leads Push for Vendor-Neutral Compliance Framework
As AI adoption accelerates across banking, the Fintech Open Source Foundation (FINOS) has launched an initiative to establish common standards for responsible AI use. Major banks including Citi, BMO, and RBC are joining forces with cloud providers like AWS, Microsoft, and Google Cloud to create a set of Common Controls for AI Services. The aim is to build vendor-neutral tools that help financial institutions comply with existing regulations while navigating emerging risks.
The initiative draws on FINOS’s earlier success with its Common Cloud Controls, which unified security and compliance practices across public cloud providers. Like that effort, the new AI controls framework will focus on real-time compliance validation. Rather than relying on manual reviews after deployment, the controls will be embedded directly into development workflows, offering developers a way to preemptively meet legal and security requirements.
Bridging the Regulatory Gap Through Collaboration
The move comes at a time when regulatory clarity around AI remains limited. Although laws on data privacy, cybersecurity, and reporting already apply, there is little specific guidance on AI in financial services. A proposed federal moratorium on state-level AI regulation has only heightened uncertainty. In response, financial firms and technology providers are coalescing around open standards as a way to align their practices and avoid duplicative efforts.
By leveraging open source, FINOS is creating a platform for collective risk management. The goal is to avoid fragmented compliance models and ensure that AI adoption doesn’t outpace the industry’s ability to govern it. The controls initiative is separate from FINOS’s existing AI risk framework, which will continue to evolve in parallel.
Bottom Line
With regulatory guidance still in flux, financial firms are moving to self-regulate through shared AI development standards. FINOS’s controls initiative offers a scalable path to responsible adoption in a tightly regulated industry.
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