In a move aimed at steering the burgeoning use of generative artificial intelligence (GenAI) in Hong Kong’s financial sector, the city’s de facto central bank, the Hong Kong Monetary Authority (HKMA), has unveiled a fresh set of guidelines. The guidelines, released Monday, call on banks to embed GenAI into their services with a rigorous adherence to customer choice and fairness. The HKMA emphasizes the importance of offering customers the option to opt out of GenAI applications and ensures that these AI systems do not perpetuate bias or disadvantage certain groups. Additionally, it insists that senior management must bear ultimate responsibility for all AI-driven decisions and processes.
While the HKMA’s 2019 principles on AI remain pertinent, the regulator acknowledges that GenAI presents new challenges that warrant additional oversight. With nearly 40% of surveyed banks either already using or planning to implement GenAI, the technology—initially popularized by platforms like OpenAI’s ChatGPT—is becoming increasingly prevalent. Yet, the technology’s current applications in Hong Kong’s banking sector are primarily limited to third-party solutions for tasks such as summarization and translation, with potential future expansions into customer-facing tools like chatbots and robo-advisors in the realms of wealth management and insurance.
As regulatory frameworks lag behind the rapid adoption of GenAI, Hong Kong’s approach to managing this transformative technology is evolving. The Office of the Privacy Commissioner for Personal Data has already set forth guidelines for personal data protection in the context of GenAI, advocating for robust internal governance. Complementing these efforts, the HKMA has launched a GenAI sandbox in collaboration with Cyberport, aiming to provide a controlled environment for financial institutions to experiment with GenAI applications while managing associated risks. The specifics of the sandbox’s application process remain under wraps, signaling a cautious yet forward-thinking approach to integrating AI into Hong Kong’s financial landscape.
(Source: Global Government Fintech | SCMP)
