The Digital Governance Standards Institute (DGSI) has officially opened a 90-day comment period for the DGSI/WA 126:2023 – Baseline Requirements for Vendors Offering AI/ML Lifecycle Solutions to Financial Institutions. This process is a key step in ensuring the regular systematic maintenance of the Workshop Agreement and will determine whether the Agreement should be updated, reaffirmed, or withdrawn.
As financial institutions (FIs) continue to integrate artificial intelligence and machine learning (AI/ML) solutions into their operations, the need for standardized risk management practices has never been greater. DGSI/WA 126:2023 provides a structured framework for vendors, helping them align with compliance, governance, and risk management requirements. Developed in collaboration with the Canadian RegTech Association (CRTA), this agreement consolidates best practices to bring clarity and consistency to third-party AI/ML vendor risk management.
A Collaborative Effort
This call for comments provides financial institutions, fintech innovators, AI/ML vendors, regulatory bodies, academics, and industry experts with an opportunity to shape the future of AI/ML lifecycle governance. The feedback will play an important role in refining the baseline requirements and ensuring they remain relevant as technology and regulatory landscapes continue to evolve.
The adoption of AI/ML presents both opportunities and challenges for financial institutions. While these technologies enhance operational efficiency, they also introduce new risks. The key to successfully managing these risks lies in establishing robust vendor oversight and accountability measures—which is precisely what DGSI/WA 126:2023 aims to achieve.
What Areas Need Your Input?
DGSI invites stakeholders to review and provide feedback on several critical aspects of AI/ML governance, including:
– Model Governance Frameworks: Ensuring vendors define clear accountability and risk management processes.
– Risk Mitigation Strategies: Addressing vendor competency, data protection, cybersecurity, and regulatory compliance.
– End-to-End Data Handling: Standardizing data collection, processing, retention, and security measures.
– Model Development and Monitoring: Enhancing AI/ML model transparency, performance tracking, and auditability.
What Happens Next?
After the 90-day public comment period, DGSI and Workshop participants will assess all input and decide whether DGSI/WA 126:2023 should be revised, reaffirmed, or withdrawn.
This consultation period is an essential step in strengthening trust, innovation, and regulatory compliance in AI-driven financial solutions. By participating, stakeholders can help build a stronger, more secure foundation for AI/ML applications in financial services.
Interested parties can submit their feedback through the standard’s page by May 2nd 2025. For more details, visit www.dgc-cgn.org.
Get involved
The DGSI’s development process is collaborative and open to all, and anyone interested in contributing to the development of digital governance standards is encouraged to get involved. For more information on how to participate, contact:
Darryl Kingston
Executive Director
Digital Governance Standards Institute
darryl.kingston@dgc-cgn.org
For further details or media inquiries, please contact:
Shyra Wells
Communications and Knowledge Mobilization Lead
Digital Governance Council
shyra.craig@dgc-cgn.org
About the Digital Governance Standards Institute
The Digital Governance Standards Institute develops digital technology governance standards fit for global use. The Institute works with experts, as well as national and global partners and the public to develop national standards that reduce risk to Canadians and Canadian organizations adopting and using innovative digital technologies in today’s digital economy. The Institute is an independent division of the Digital Governance Council. To learn more about the organization and its initiatives, visit www.dgc-cgn.org or contact info@dgc-cgn.org.