{"id":90432,"date":"2024-08-20T08:12:12","date_gmt":"2024-08-20T12:12:12","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=90432"},"modified":"2024-08-20T08:12:19","modified_gmt":"2024-08-20T12:12:19","slug":"hong-kong-issues-ai-guidelines-for-protection","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/hong-kong-issues-ai-guidelines-for-protection\/","title":{"rendered":"Hong Kong Issues AI Guidelines for Consumer Protection"},"content":{"rendered":"\n

Hong Kong Monetary Authority (HKMA) introduced additional principles to address the growing adoption of GenAI<\/a>. <\/p>\n\n\n\n

\"Hong
Hong Kong Issues AI Guidelines for Consumer Protection<\/figcaption><\/figure>\n\n\n\n

The Hong Kong Monetary Authority (HKMA) has established a set of guiding guidelines for the use of generative artificial intelligence in consumer-facing apps in order to protect end-users.<\/p>\n\n\n\n

The Hong Kong Monetary Authority (HKMA<\/a>), which is Hong Kong's central banking institution, has issued a circular to authorised institutions, the majority of which are banks, in which it introduces modifications to its preceding four pillars of guidance on the use of generative artificial intelligence (GenAI).<\/p>\n\n\n\n

In November 2019, the initial proposal for big data analytics and artificial intelligence proposed four central pillars: governance and accountability, fairness, transparency and disclosure, and data privacy and protection. <\/p>\n\n\n\n

We added brand new principles to these four central pillars. In the past few months, the adoption of generative artificial intelligence (AI) for customer-facing apps has risen among banking institutions, as stated by Alan Au, the executive director of the banking conduct section of the Hong Kong Monetary Authority (HKMA). <\/p>\n\n\n\n

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\u201cPotential 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.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Taking into account the consequences for consumer protection, Au proposed a number of principles for GenAI, one of which was to provide end-users with transparent information through disclosures that were easy to grasp.<\/p>\n\n\n\n

Moreover, the Hong Kong Monetary Authority anticipates that the board of directors and senior management would be completely accountable for any actions that pertain to GenAI. <\/p>\n\n\n\n

GenAI models used in consumer-oriented applications must also ensure fair and consistent results. Lastly, the HKMA requested that authorised institutions pay particular attention to the protection of consumer data.<\/p>\n\n\n\n

On August 13, the Hong Kong Monetary Authority (HKMA) collaborated with Cyberport, a state-run technological business, to establish a GenAI sandbox for finance. The GenAI sandbox in Hong Kong serves as a platform for testing the possible uses of artificial intelligence in the financial sector. <\/p>\n\n\n\n

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Source: Cyberport<\/figcaption><\/figure>\n\n\n\n

These applications include risk management, anti-fraud, customer service, and process reengineering. Carmen Chu, the executive director of the Hong Kong Monetary Authority (HKMA), explained that the GenAI sandbox\r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a> enables financial institutions to test out their innovative GenAI use cases in a risk-managed environment, supported by necessary technical assistance and targeted supervisory feedback.<\/p>\n\n\n\n

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\u201cThis new sandbox aims to overcome the \u201chard\u201d and \u201csoft\u201d barriers to the adoption of GenA.I., that is, the demand for computing capabilities and the need for supervisory guidance.\u201d<\/p>\n<\/blockquote>\n\n\n\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Hong Kong Monetary Authority (HKMA) introduced additional principles to address the growing adoption of GenAI. The Hong Kong Monetary Authority (HKMA) has established a set of guiding guidelines for the use of generative artificial intelligence in consumer-facing apps in order to protect end-users. The Hong Kong Monetary Authority (HKMA), which is Hong Kong’s central banking […]<\/p>\n","protected":false},"author":62,"featured_media":90437,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[21392,21391,4861],"class_list":["post-90432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-alan-au","tag-genai","tag-hkma"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2024\/08\/images-4-2.jpeg","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/90432","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/62"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=90432"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/90432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/90437"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=90432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=90432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=90432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}