Enhancing Transparency in AI: Quebec's AMF Urges Financial Institutions to Inform Customers

In a recent discussion paper released by the Autorité des marchés financiers (AMF) in Quebec, financial institutions are called upon to prioritize transparency when employing Artificial Intelligence (AI) in their services. The paper underscores the critical importance of ensuring that consumers are well-informed about the use of AI and its implications when making financial decisions.

Key points highlighted in the discussion paper revolve around the necessity for transparency:

1. Accessible Information: Consumers must have access to comprehensive information to evaluate both the benefits and risks associated with AI implementation in financial products and services.

2. Coverage of Information: Disclosure should encompass the objectives, limitations, and functionality of AI systems, along with measures in place to mitigate potential risks.

3. Understanding through Plain Language: Communication should be clear, concise, and devoid of technical jargon, ensuring that consumers comprehend the disclosed information.

4. Encouraging Engagement: The interface design should facilitate thorough reading of information rather than quick responses, encouraging consumers to make informed decisions.

5. Expert Assistance: Consumers dissatisfied with disclosed information should have the option to seek assistance from technical experts to address their concerns effectively.

6. Identification of AI-generated Content: Financial players are urged to inform consumers, via suitable means like digital watermarking, when content is wholly or partly generated by AI tools.

7. Clarity on Decisions: In cases where AI significantly impacts consumers, they should have the right to request a clear explanation of the process and factors influencing outcomes or decisions.

8. Control Over Personal Information: Consumers should be empowered to access and correct any personal data used by AI systems, ensuring accuracy and privacy protection.

9. Human Support and Review: Access to human assistance at any stage of interaction with AI systems, including the option to have decisions reviewed by a person, should be provided.

The AMF's emphasis on transparency reflects a growing recognition of the need to align AI adoption with consumer interests and rights. By ensuring that consumers are well-informed and supported throughout their interactions with AI-driven financial services, institutions can foster trust and accountability in this rapidly evolving landscape.

Financial institutions operating in Quebec and beyond would do well to heed these guidelines, not only as a regulatory requirement but also as a commitment to ethical and responsible AI deployment. Ultimately, transparency serves as the cornerstone for building resilient and inclusive financial ecosystems that prioritize consumer welfare above all else.

AMF (2024) Best practices for the responsible use of AI in the financial sector, AMF [https://lautorite.qc.ca/en/general-public/publications/for-professionals/ai-in-the-financial-sector]