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One of Indonesia’s largest banks became the first in Southeast Asia to achieve ISO/IEC 42001:2023 certification for its Artificial Intelligence Management System and ISO 27701:2019 on Privacy Information Management System, signaling a shift in how AI is viewed in banking. While AI is already widely used across credit scoring, fraud detection, customer analysis, and operational processes, the focus is now shifting to accountability for how it is governed.
From Adoption to Accountability
AI is increasingly involved in decisions that directly affect customers and financial stability. As its role expands, informal oversight is no longer sufficient. And critically, AI governance is no longer a matter for IT or data teams alone. It has become relevant at the level of senior management and the board.
ISO/IEC 42001:2023 introduces a structured approach to managing AI at the organizational level. It covers:
- Governance and oversight structures
- Integration with risk management
- Transparency and explainability
- Accountability for AI use
- Continuous monitoring and improvement
The Regulatory and Strategic Case
Regulatory attention on AI is increasing globally, particularly around responsible use, consumer protection, and algorithmic decision-making. While Indonesia has not yet introduced comprehensive AI regulation for financial services, the direction is clear: AI risk is becoming regulatory risk.
Institutions that delay governance decisions may face increasing pressure as expectations evolve. In this context, AI oversight is part of enterprise risk management and corporate governance, not just a technical concern.
Key questions for leadership include:
- Is AI governance integrated with enterprise risk management?
- Is accountability for AI clearly defined at management and board level?
- Are AI models subject to documented validation and review?
- Is data privacy aligned with AI deployment?
They are governance questions, and the answers will increasingly define institutional credibility.
Beyond Compliance: Building Trust and Readiness
AI management certification demonstrates that governance is implemented in a structured and consistent way. More importantly, it signals readiness for increased regulatory scrutiny and stronger expectations around transparency.
Institutions that establish governance early are better positioned to manage risk, protect customers, and maintain trust. What begins as leading practice will likely become industry standard. For financial institutions, the focus is shifting from adopting AI to governing it in a way that is accountable, transparent, and aligned with business and risk objectives. Mature AI governance will be the key differentiator between institutions that merely innovate and those that endure.
Turning Governance Into Practice
Crowe supports financial institutions through Zero-Cost Readiness Assessments, ISO/IEC 42001:2023 gap analysis, strategic ERP and AI governance committee facilitation, technical debt remediation planning, and flexible architecture design that enables scalability and modularity. We help organizations translate AI governance into structured, auditable practices that align with enterprise risk management and regulatory expectations.