Regulatory
FSB finalises 12 sound practices for responsible AI adoption
15 October 2026 · FSB
The FSB issued its final report setting out 12 sound practices to help financial institutions adopt AI responsibly while managing risks. The practices are grouped into organisation-wide AI governance and lifecycle risk management.
Points to Remember
- sound practices organised into 2 groups: AI governance and AI lifecycle risk management.
- Final report follows the June 2026 consultation; response overview also published.
- Board and senior management must align AI adoption with business model, risk appetite and strategy.
- Covers risk areas: data governance, explainability, human oversight, cyber/ICT risk and third-party AI dependencies.
- Non-binding guidance: institutions tailor it to their context and integrate into existing cyber and third-party risk frameworks.
Why it matters
Understanding FSB AI governance expectations helps prepare for supervisory scrutiny of how your institution adopts and controls AI tools.
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