COSSEC chief stresses need for human oversight in use of AI across co-op sector.

By THE STAR STAFF

As the use of artificial intelligence (AI) continues to expand within the financial industry, Mabel Jiménez Miranda, the executive president of the Puerto Rico Public Corporation for the Supervision and Insurance of Cooperatives (COSSEC), underscored the importance of ensuring that the technologies operate under human oversight, strong institutional controls and responsible risk management across the cooperative system.

Her remarks were delivered recently during the Ethics Symposium organized by the Cooperativa de Seguros Múltiples de Puerto Rico, where Jiménez Miranda led a workshop titled “Ethical Standards in Artificial Intelligence and Their Application in Cooperatives.”

In her presentation, the co-op sector leader emphasized the need to integrate technological innovation with prudent administration, proper risk management and the protection of member information.

Jiménez Miranda noted that AI tools can support operational processes, credit analysis, and risk detection within financial institutions. However, she cautioned that their implementation must follow clear standards for security, institutional supervision, and regulatory compliance.

“Artificial intelligence can optimize processes and strengthen institutions’ capacity to manage risks,” Jiménez Miranda said. “However, its use must be paired with human oversight, institutional transparency, and compliance with regulatory standards that protect member information and interests.”

She also highlighted that the use of AI technologies must align with Regulation No. 9741 on information and technology systems, which outlines requirements related to information security, technology risk management, vendor oversight and incident reporting.

Jiménez Miranda stressed that Puerto Rico’s cooperative system -- serving more than one million members -- must continue embracing technological innovation while maintaining adequate institutional controls and responsible risk governance.

She reiterated COSSEC’s commitment to strengthening its technological supervision frameworks to support the cooperative sector in the responsible adoption of emerging digital tools.

“Technology can automate processes, but the institutional responsibility to protect member trust remains a human one,” she said.