Source: Untar Public Relations
The use of Artificial Intelligence (AI) in the banking industry continues to expand alongside the acceleration of digital transformation. This development became the focus of discussion during an Open Doctoral Defense of the Doctoral Program in Law at Untar, held at the Auditorium of Building M, Untar Campus I, on Thursday (21/05/2026).
During the session, promovendus Maheswara Perbawa Sukawati defended his dissertation entitled “The Construction of Legal Protection for the Implementation of Artificial Intelligence in the Banking Sector.” The examination was chaired by Prof. Dr. Amad Sudiro, S.H., M.H., M.Kn., M.M., who also served as the principal promoter, while Prof. Dr. I Wayan Gde Wiryawan, S.H., M.H. acted as co-promoter.
The research examines the importance of establishing a legal protection framework for the use of AI in banking activities, particularly in relation to data security, consumer protection, and the governance of digital technologies.
In his presentation, Maheswara Perbawa Sukawati emphasized that technological advancement cannot be separated from legal responsibility capable of providing security and confidence for the public as users of banking services.
“The implementation of artificial intelligence in the banking sector must remain grounded in legal protection principles so that technological advancement can progress in balance with data security, legal certainty, and consumer protection,” he stated.
According to the study’s findings, the principles of trust, prudence, confidentiality, and Know Your Customer (KYC) serve as the primary foundations for legal protection in the application of AI within the banking sector. The research also highlights several principles adopted in various countries, including accessibility for persons with disabilities, decentralized approaches that avoid concentrating AI governance within a single institution, and collaborative frameworks between financial institutions and technology sectors in overseeing the use of AI.
The study further underscores the importance of implementing security principles, technological neutrality, and consumer protection measures to ensure that digital transformation in the banking industry is carried out responsibly and sustainably.
Through his research, Maheswara Perbawa Sukawati also advocates for the establishment of specific regulations governing AI in Indonesia. The study is expected to serve as a reference for the Financial Services Authority (OJK) and Bank Indonesia in formulating policies on AI utilization that prioritize legal protection and regulatory certainty. (KS/YS)