Reports indicate that the Hong Kong government will establish policies regarding using artificial intelligence (AI) in the financial sector by the conclusion of October.
Hong Kong authorities intend to enhance the utilization of AI in the traditional trading, investment banking, and cryptocurrency markets by implementing new policies.
The Financial Services and the Treasury Bureau (FSTB) of Hong Kong, a government agency responsible for implementing policies related to finance and treasury, will issue a framework for the ethical use of AI in the finance markets.
According to a Bloomberg report, officials are in the process of drafting the policy document and soliciting feedback from the industry, citing unnamed sources.
The AI guidelines are expected to be finalized and unveiled at the Hong Kong FinTech Week event, scheduled from October 28 to November 1.
Hong Kong will evaluate the global adoption of AI
The FSTB spokesperson, who remains anonymous, is closely monitoring global experiences to advocate for the responsible use of AI in the financial sector.
“The government will issue a policy statement later this year, setting out its policy stance and approach on the application of AI in the financial market.”
The use of prominent AI tools, such as OpenAI’s ChatGPT and Google’s Gemini, in Hong Kong is currently prohibited due to the ongoing US-China tech conflict. Consequently, the jurisdiction prioritizes developing and implementing AI services at the grassroots level.
To protect end-users, the Hong Kong Monetary Authority (HKMA) published guiding principles for the use of generative AI in consumer-facing applications in August.
Guidelines for consumer-facing generative AI tools
The principles of generative AI underscore the necessity of data protection, transparency, and governance in consumer-facing applications.
Alan Au, the executive director of the HKMA’s banking conduct department, emphasized the increasing prevalence of generative AI applications.
“Potential applications include but are not limited to customer chatbots, customized product and service development and delivery, targeted sales and marketing, and robo-advisors in wealth management and insurance.”
Additionally, the HKMA declared that the board and senior management would be wholly responsible for any decisions related to generative AI, particularly those that pertain to consumer-oriented applications.
Furthermore, the HKMA requested that authorized institutions prioritize the protection of customer data.
