4. AI is built and used
responsibly and ethically
AI advances international
competitiveness and
national security
AI serves society broadly,
not narrowly
5. Our responsible AI journey
2016
Satya Nadella’s article
on AI Design Principles
2017
Aether
Committee
established
2018
AI Principles
adopted
2018
Facial Recognition
Principles adopted
2019
Office of
Responsible AI
established
2019
Responsible AI
Standard v1
2020
Responsible AI
Strategy in
Engineering
established
2021
Responsible AI
Dashboard
2022
Responsible AI
Standard v2
6. Microsoft’s approach to Responsible AI
Principles
Transparency
Accountability
Fairness
Reliability & safety
Privacy & security
Inclusiveness
Corporate
Standard
Goals
Requirements
Practices
Corporate
Standard
Goals
Requirements
Practices
Corporate
Standard
Goals
Requirements
Practices
7. The Responsible AI Standard’s Goals at a Glance
Accountability
A1: Impact Assessment
A2: Oversight of significant
adverse impacts
A3: Fit for purpose
A4: Data governance and
management
A5: Human oversight and
control
Transparency
T1: System intelligibility for
decision making
T2: Communication to
stakeholders
T3: Disclosure of AI
interaction
Fairness
F1: Quality of service
F2: Allocation of resources
and opportunities
F3: Minimization of
stereotyping, demeaning,
and erasing outputs
Reliability & Safety
RS1: Reliability and safety
guidance
RS2: Failures and
remediations
RS3: Ongoing monitoring,
feedback, and
evaluation
Privacy & Security
PS1: Privacy Standard compliance
PS2: Security Policy compliance
Inclusiveness
I1: Accessibility Standards compliance
8. European draft AI Act
Unacceptable risk
e.g. social scoring
High risk
e.g. recruitment, health, immigation
Limited risk
e.g. Chatbots, deep fakes
Minimal / no risk
e.g. AI video games, spamfilters
Council: General Purpose AI
AI systems in all sectors*
Risk-based approach
Parliament: Foundation models
9. Generative AI in Financial Services
Banking
Customer
Engagement
Empowering
advisors
Know your
Product
Capital Markets
Market
research
Know Your
Product
Pitchbook
generation
Insurance
Claims
Processing
Empowering
Agents
Underwriting
Copilot
Common Scenarios
Client Engagement
Internal Copilot
agents
Knowledge
Search
Support
Code Optimization
& Modernization
NLP document
analysis
Accessibility and
language
translation
Fraud
detection
10. 75%
of financial services executives see
opportunities to power fraud detection, risk
management, and client experiences with
generative AI
KPMG, Generative AI: From buzz to business value, May 2023.
11. $340billion
For the banking industry, generative AI could
deliver annual value up to an additional
McKinsey & Company, The economic potential of generative AI: The next productivity frontier, June 2023.
12. Global Financial Services Regulatory Compliance Leadership
Our Regulatory Focus
Since 2012 we invested to address the needs of the Financial Services
Industry. Our approach has 3 pillars:
1. Direct engagements with financial services regulators to educate,
build common understanding and engage on trending regulation.
2. Partner with customers to ensure our cloud services and commercial
terms remain consistent with regulatory requirements.
3. Build community among regulators and customers enabling
progressive players to influence others and establish a feedback
loop to enhance and propel our compliance leadership.
10+ Years of engagement with Financial Services Regulators
Global Regulations: Heat Map (2022)
Red: Blocked
Orange: Restrictive
Green: Allowed
Gray: No data
Size of bubbles represents importance
of market for FSI in country
The global regulatory landscape continues to
evolve rapidly as financial institutions prepare to
move core banking workloads into the cloud.
Regulatory engagement and education led to
modernization of outsourcing regulations. Today
regulation is no longer a barrier in most key
markets.
Microsoft remains a leader when it comes to
driving global regulatory changes and providing
built-in compliance capabilities to help meet
regulatory requirements.
