KB Securities Promotes Establishment of 'AI Governance System'

KB Securities announced on the 30th that it will establish an 'AI Governance System' to prevent side effects caused by rapid technological growth and to provide systematic artificial intelligence (AI) financial services.

As AI technology rapidly advances, AI is being utilized in various sectors of the financial industry. With the expansion of AI-based services such as robo-advisors, consultation chatbots, and machine learning-based product recommendations, customers can now enjoy more convenient financial services. However, at the same time, new risk factors have emerged, including bias in AI algorithms, misuse of customer information, and unfair discrimination.

In response, KB Securities plans to establish an AI governance system aimed at providing trustworthy AI financial services to customers by identifying and preventing ethical and legal issues, as well as risks related to AI training data and models, that may arise during the use of AI technology. This will be done through consulting with specialized firms possessing AI technology and legal expertise, such as Samsung SDS, Kim & Chang Law Firm, and Samjong KPMG.

The goal of establishing the AI governance system is to create and comply with ethical principles that respect human dignity, fairness, and diversity throughout the AI development and utilization process, and to systematize internal regulations for efficient AI system development.

When practical departments review the introduction of AI-related systems and services, an AI work manual will be provided to allow prior examination of review methods and risk reduction measures related to AI utilization. Additionally, risk levels for each AI service will be measured, and management and monitoring policies will be established according to the calculated risk levels.

By proactively establishing a management system ahead of the implementation of AI-related regulations by the government and supervisory authorities, KB Securities plans to prevent and manage risks that may arise from AI use, thereby strengthening consumer protection. In particular, the emphasis on preventing customer harm caused by AI technology misuse is expected to contribute to financial consumers feeling secure when using financial services.

Furthermore, the pioneering establishment of this AI governance system is anticipated to enhance trust in AI utilization across the financial industry and contribute to strengthening the competitiveness of the domestic financial market. Under the rapidly evolving AI technology environment, it is expected to provide a systematic guide that can reduce risks and prevent accidents that may occur during the development of creative and diverse AI-based services, thereby encouraging active use of AI technology.

Ha Woo-sung, Head of the Digital Business Division at KB Securities, stated, "As the role of AI continues to grow day by day, we plan to proactively establish an AI governance system within this year to introduce responsible AI," adding, "We will do our best to become KB Securities, leading AI technology based on customer trust."