In response to the rapid development of artificial intelligence (AI), TBB has developed its AI Development Roadmap, focusing on four key areas: Manage, Talent, Architect, and Execution, with related initiatives being launched and implemented accordingly.

TBB is developing an AI experimentation and simulation environment that enables personnel to effectively test and evaluate AI models and assess the feasibility of applying AI to different business scenarios.

In addition to holding AI-related seminars from time to time to enhance employees’ awareness and understanding of AI, TBB has established training programs for personnel participating in its internal AI laboratory.
At the initial stage, workshops led by professional instructors are conducted to facilitate creative thinking and idea generation. Advanced training courses are also arranged to provide laboratory personnel with hands-on experience. TBB further plans to conduct Proof of Concept (POC) projects based on business scenarios to validate the feasibility of practical implementation. These initiatives are designed to strengthen the technical capabilities of professional personnel and enhance collaboration with business personnel.

Through its internal AI laboratory, which brings together personnel from different departments, TBB focuses on four key application areas: Administrative Assistance, Risk Management, Investment and Financing Decision-Making, and Customer Service.
TBB explores and identifies appropriate roles and tools for each application scenario and conducts practical validation. Validated results may subsequently be applied to actual business operations to enhance overall operational efficiency and provide more convenient financial services.

To ensure effective management of risks arising from the use of AI systems, information security, fair treatment of customers, protection of consumer rights, and sustainable development, TBB has established its AI governance framework and risk management mechanisms in accordance with the Financial Supervisory Commission's "Guidelines for Artificial Intelligence (AI) Applications in the Fi-nancial Industry" and The Bankers Associationof the Republic of China's "Oper-ational Guidelines for Artificial Intelligence Applications Used by Financial In-stitutions".
TBB has established an AI governance framework covering governance structure, AI system inventory, risk classification, lifecycle management, data governance, information security, supply chain management, transparency and explainability, and measurement and monitoring mechanisms. A total of one policy and eight management regulations have been established.
TBB’s AI Governance Policy has been approved by the Board of Directors and implemented accordingly. TBB has also established the Artificial Intelligence Governance and Development Committee, which is responsible for coordinating AI development strategies, governance frameworks, and risk management activities, thereby strengthening TBB’s internal control and internal audit framework for AI applications.

Throughout each stage of the AI system lifecycle, TBB implements personal data protection and data management in accordance with applicable laws and regulations and its governance principles. TBB also adheres to the principle of data minimization to protect customer privacy, rights, and interests.
(Relevant provisions of TBB’s AI Governance Policy: Articles 4, 5, 6, 7, 9, and 11)

Based on the results of AI system risk assessments, TBB implements appropriate data management, information security protection, and other control measures throughout each stage of the AI system lifecycle and incorporates such measures into its internal control operations. For AI systems provided by third parties, TBB also implements risk management, clearly defines the division of responsibilities, and conducts necessary verification to ensure system robustness and security.
(Relevant provisions of TBB’s AI Governance Policy: Articles 4, 5, 6, 7, 9, and 12)

TBB emphasizes fairness and human-centered values, respects the autonomy and fundamental rights of customers and employees, and seeks to prevent bias and discrimination. TBB also plans appropriate human oversight mechanisms based on the level of impact of AI systems.
(Relevant provisions of TBB’s AI Governance Policy: Articles 4, 6, 9, 10, and 11)

TBB implements transparency and explainability throughout each stage of the AI system lifecycle and maintains an appropriate understanding of the operation and logic of AI systems to assess whether they comply with TBB’s policies, operating procedures, and regulatory requirements. Where AI systems involve interactions with customers or may affect customer rights and interests, TBB discloses relevant information to customers in an appropriate manner.
(Relevant provisions of TBB’s AI Governance Policy: Articles 4, 7, 9, and 13)

Through the Artificial Intelligence Governance and Development Committee, risk assessments, AI governance reviews, and other relevant mechanisms, TBB implements AI system governance and risk management and clearly defines relevant roles and responsibilities. The use of AI systems shall comply with applicable laws and regulations and TBB’s governance requirements, and shall avoid use beyond the intended purpose, unauthorized use, or other inappropriate use.
(Relevant provisions of TBB’s AI Governance Policy: Articles 2, 4, 5, 6, 7, 8, 9, 10, 11, and 12)

TBB incorporates sustainable development into its core AI governance principles and AI governance reviews. Before implementing an AI system, TBB identifies and assesses its potential environmental and social impacts or risks and undertakes appropriate planning and management measures to mitigate potential adverse impacts, while balancing AI development with environmental and social sustainability.
(Relevant provisions of TBB’s AI Governance Policy: Articles 1, 4, 6, 9, and 14)

Through AI risk assessment and governance review mechanisms, TBB identifies and manages potential risks arising from AI applications, including legal, ethical, information security, consumer protection, and other relevant risks. The use of AI systems shall comply with applicable laws and regulations as well as TBB’s governance principles relating to fairness and human-centered values.
(Relevant provisions of TBB’s AI Governance Policy: Articles 1, 4, 5, 6, 7, 9, 10, 11, 12, and 14)

To ensure effective risk management, system security, fair treatment of customers, protection of consumer rights, and sustainable development through the use of artificial intelligence systems, Taiwan Business Bank (hereinafter referred to as TBB) has established this policy in accordance with the Financial Supervisory Commission's "Guidelines for Artificial Intelligence (AI) Applications in the Fi-nancial Industry" and The Bankers Associationof the Republic of China's "Oper-ational Guidelines for Artificial Intelligence Applications Used by Financial In-stitutions" based on risk and implementing core principles.

This policy applies to the artificial intelligence systems used in all business oper-ations of TBB.

The following terms are defined in this policy:

• Artificial Intelligence System: Refers to a system that learns from large amounts of data and utilizes machine learning or related algorithms to build models, mimicking human learning, thinking, and reaction patterns in areas such as perception, prediction, decision-making, planning, reasoning, and communication.
• Generative Artificial Intelligence: Refers to technologies that learn from large amounts of data to generate content that simulates human intelligence, including but not limited to text, images, sound, photographs, videos, and code.

The following principles should be followed when utilizing artificial intelligence systems:

• Establish governance and accountability mechanisms.
• Emphasize fairness and human-centered values.
• Protect privacy and customer rights.
• Ensure system robustness and security.
• Implement transparency and explainability.
• Promote sustainable development.

When using artificial intelligence systems, TBB shall comply with relevant laws and regulations concerning information security, personal data protection, finan-cial consumer protection, and intellectual property rights to ensure the legality and compliance of its use of artificial intelligence systems.

TBB shall establish an artificial intelligence risk management mechanism, conduct relevant risk assessments when using artificial intelligence systems, and adopt appropriate risk control measures based on the risk assessment results to reduce potential risks.

TBB shall establish lifecycle management for artificial intelligence systems and implement control over each stage of the artificial intelligence system lifecycle based on the risk assessment results. Regardless of whether it is developed in-house or provided by a third party, TBB shall identify and assess the degree of risk that it can control at each stage of the lifecycle. For the parts or matters that it has less control over, TBB shall, through contracts or other means, clearly define the division of risk control responsibilities between TBB and the third party.

TBB has established an "Artificial Intelligence Governance and Development Committee" and formulated relevant regulations, defining the responsibilities of the governance organization, supervising and managing TBB's use of artificial intelligence systems, and providing necessary resources to ensure that the appli-cation of artificial intelligence complies with laws and regulations and meets gov-ernance requirements.
The establishment procedures for TBB's "Artificial Intelligence Governance and Development Committee" will be stipulated separately.

TBB shall establish an artificial intelligence governance review process and con-duct reviews to ensure that aspects such as risk assessment, legality, system ro-bustness, data governance, information security, consumer protection, sustainable development, and contingency measures for unforeseen events are all taken into consideration and managed.

When using artificial intelligence systems,TBB shall ensure fairness, avoid in-fringing upon the autonomy of customers or employees, and respect basic human rights, preventing bias and discrimination.
When using artificial intelligence systems, TBB shall plan appropriate human oversight mechanisms based on the impact of the systems.
When using generative artificial intelligence systems developed by third parties, TBB shall conduct risk assessments and controls on the information generated to ensure compliance and reliability in their use.

When using artificial intelligence systems to collect customer data, TBB shall ad-here to the principle of data minimization, avoiding the collection of excessive or unnecessary sensitive information. Customer data shall be properly managed and used to fully protect customer privacy and respect the intellectual property and trade secrets of others.
TBB shall not provide customer information disclosed or made public without the customer's consent when using artificial intelligence systems; however, this does not apply to information that does not involve personal data or information that cannot identify the customer.
When providing services or information to customers using artificial intelligence systems, TBB shall assess whether to provide alternative solutions and remedial measures, and inform customers of the relevant details, ensuring their right to choose alternative solutions.

TBB shall establish appropriate control measures for data management, infor-mation security protection, and other aspects of the use of artificial intelligence systems, and incorporate them into its internal control operations.
TBB shall implement management of third-party vendors and, when necessary, may commission third-party auditing or evaluation agencies to conduct inde-pendent verification to ensure the robustness and security of the systems.

TBB shall ensure transparency and explainability in the operation of its artificial intelligence systems at each stage of their lifecycle.

When using artificial intelligence systems to conduct business interactions with customers, TBB shall disclose relevant information to customers in an appropriate manner to help them understand the positive or negative impact on their rights.
TBB shall have a clear understanding of the operation and logic of its artificial intelligence systems to help it assess whether they comply with its policies, oper-ating procedures, and regulatory requirements.

When utilizing artificial intelligence (AI) systems, TBB shall ensure that its de-velopment strategies and implementation take into account international sus-tainable development goals and TBB's sustainable development principles, en-compassing environmental, social, and governance aspects.
Before implementing an AI system, TBB shall identify and assess the system's environmental and social impacts or risks, and make appropriate plans to achieve sustainable development.
Before implementing an AI system, TBB shall assess the impact of its implemen-tation on employee rights and work patterns, and provide appropriate education and training.
TBB shall implement general education and training on the use of AI systems to enhance employees' knowledge of AI system applications, promote the imple-mentation of AI systems, ensure TBB personnel have sufficient knowledge and skills in AI, and make appropriate decisions and oversight regarding the use of AI systems based on risk.

TBB shall review this policy at least annually, or re-review it when there are sig-nificant changes in laws or related technologies, to ensure that its content complies with relevant laws and technological developments concerning artificial intelli-gence governance and TBB 's operational needs, and continuously adapts to changes in the internal and external environment.
The annual review is authorized to be carried out by the management department. If revisions are necessary after the review, they shall be submitted to the Board of Directors for review.

Any matters not covered in this policy shall be handled in accordance with laws and regulations and the relevant provisions of TBB.

This policy shall be implemented after being approved by the Board of Directors, and the same applies to any amendments thereto.