professional services based in singapore. i encourage strong collaboration between these teams, so that we can all accelerate the green transition in asia. artificial intelligence the second " t " is technology. there are many areas of technology, but i will focus on artificial intelligence ( ai ), and in particular what everyone is excited about : generative ai ( gen ai ). 4 / 7 bis - central bankers'speeches a. several insurance players have begun experimenting with how gen ai can transform their business functions. b. for now, there are limited use cases of strong impact. but as with all technology waves, we tend to overestimate the potential in the short - term, and underestimate the potential in the longer - term. there is usually a lot of hype going into a new technology, and a lot of disappointment after the hype. later on, as the technology matures and with greater adoption, we should see more promising use cases. c. in time to come, i have no doubt that the models will get better, and will be applied across a wider range of applications and functions, and will bring about the transformation in finance and insurance. at the same time, we will have to grapple with deep ethical issues, and consider how ai systems can be imbued with human context and human values. mas is supporting the use of gen ai in the industry in two ways. first, in facilitating the development of a governance framework for responsible ai, to harness its benefits while mitigating the downside risks. a. a gen ai model failure, while may be rare, could result in widespread damage if the model is fully trusted in the wrong scenario. one may say that the chance of a model failure is only 1 %, but that 1 % failure can have widespread implications if it is applied wrongly. guardrails are necessary so that financial institutions can adopt gen ai in a responsible manner that keeps consumers, businesses and the broader economy safe. b. mas has also launched project mindforge to promote the responsible use of gen ai. mindforge provides a platform that pools data resources from the financial industry with gen ai technologies to test use cases, like managing complex compliance tasks, against comprehensive risk frameworks. this iterative process will generate learnings to improve the industry's overall resilience, and provide a controlled approach towards the safe adoption of gen ai. we hope to onboard insurers as we develop mindforge further. second, mas is supporting

##bonisation. innovative risk management and insurance solutions can help to mitigate the risks involved in the storage and transportation of hydrogen, enabling larger scale 2 / 7 bis - central bankers'speeches production on a commercial scale, and attracting private capital into this new area of energy infrastructure. as investors, insurers can allocate more capital to address the infrastructure needs of emerging asia, particularly green infrastructure. the scale and investment characteristics of infrastructure line up well for insurers'investment needs. a. insurers hold significant investment capacity relative to the infrastructure investment need. according to the world bank, a 5 % allocation of insurers'gross written premiums into infrastructure investments could close half of the world's annual infrastructure investment gap [ 1 ]. b. infrastructure assets have long duration and can potentially match well with the long - term liabilities of life insurers. c. infrastructure finance is typically structured to keep pace with inflation, which can provide risk diversification and serve as an alternative asset for insurers'investment portfolios. d. to support insurers'investments into infrastructure assets, mas has been closely monitoring international standards in the insurance industry and studying available data relating to infrastructure assets. we will soon issue a public consultation on the proposed capital treatment for insurers'investments in infrastructure assets. given the natural fit between insurers'investment needs and infrastructure assets, why don't we see larger allocations by insurers? the simple answer is the bankability of projects – only 10 % of projects in asia's emerging economies are bankable [ 2 ]. this clearly constrains the available pipeline of investible opportunities for insurers. a. in this regard, blended finance can be the solution to bring marginally bankable infrastructure projects within the investment risk appetite of insurers and other private investors. b. through blended finance, we use a limited pool of concessional capital from public or philanthropic sources, to crowd in multiples of private capital. that's why singapore has been actively supporting and promoting this space. a. we have platforms that aim to scale infrastructure investments and blended finance. one example is bayfront infrastructure management, which acquires infrastructure debt from banks and repackages them as infrastructure assetbacked securities ( iabs ), providing institutional investors including insurers, access to a diversified portfolio of infrastructure exposures. 3 / 7 bis - central bankers'speeches b. in addition, singapore is working closely