Regulation watch: everything risk managers need to know about ASEAN’s guide to AI governance and ethics

In February 2024, the Association of Southeast Asian Nations (ASEAN) endorsed its AI Governance and Ethics Guide.

ASEAN is a political and economic union of 10 Southeast Asia member states, including Singapore, Malaysia and Vietnam, that promotes regional intergovernmental cooperation.

The guide outlines key principles for the ethical governance of AI and encourages organisations in the region to adopt them in their design, development and deployment of AI technologies for commercial, non-military and dual-use applications.

It also recommends national and regional initiatives for policymakers to embrace responsible AI development.

Developed in consultation with industry partners not a single regulator, it establishes an intergovernmental standard for organisations and policymakers and promotes uniform and consistent approaches to AI that are aligned with national and corporate values as well as broader ethical norms.

WHY IS IT IMPORTANT FOR RISK MANAGERS?

The guide presents an AI governance framework designed to assist organisations in managing the risks and ethical considerations associated with AI.

This framework is founded on seven core principles:

• transparency and explainability
• fairness and equity
• security and safety
• robustness and reliability
• human-centricity
• privacy and data governance
• accountability and integrity

The Guide emphasises four key strategic areas for organisations to adopt: internal governance structures and measures; determining the level of human involvement in AI-augmented decision-making; managing the AI system lifecycle; and stakeholder interaction and communication.

At the national level, the guide urges policymakers to upskill their workforce, nurture AI talent and promote investment in AI start-ups.

Countries are recommended to invest in research and development, and educate citizens about the risks and benefits of AI to empower them to make informed decisions regarding AI use.

“Faced with the inevitable reality of AI adoption, risk managers must effectively manage a wide range of risks”

At the regional level, the guide calls for the creation of a new ASEAN Working Group on AI governance to provide guidance on implementing AI plans.

Faced with the inevitable reality of AI adoption, risk managers must effectively manage a wide range of risks, such as data privacy violations, cybersecurity threats, and ethical dilemmas while helping organisations navigate the evolving patchwork of global regulations, which represent a constant challenge.

WHAT’S NEXT?

Risk managers should follow the guide’s progression, as ASEAN has termed it a ‘living document’ that will be regularly updated.

While the EU has developed the EU AI Act as the first-ever legal framework on AI, ASEAN’s guide indicates that Southeast Asian countries are entering the race to equip its nations with practical governance and ethical principles/frameworks tailored to the region’s distinct characteristics.

“Risk managers should follow the guide’s progression, as ASEAN has termed it a ‘living document’”

Beyond promoting uniform AI standards across ASEAN, the goal is to boost consumer confidence and facilitate the cross-border deployment of AI-powered services and solutions throughout the region.

ASEAN has recognised the need to expand the current framework to include governance guidelines for generative AI, a fitting first project for the newly formed ASEAN Working Group.