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The Hong Kong government is set to introduce regulatory policies on the use of artificial intelligence (AI) in the finance sector, with the new guidelines expected to be unveiled during the upcoming Hong Kong FinTech Week, scheduled for October 28 to November 1, 2024.
The Financial Services and the Treasury Bureau (FSTB), a key government agency overseeing finance and treasury policies, will release a framework that aims to promote the ethical and responsible use of AI in Hong Kong’s traditional trading, investment banking, and cryptocurrency markets. According to a Bloomberg report citing industry insiders, the FSTB is currently in the process of drafting the policy document while seeking feedback from key stakeholders within the financial sector.
The proposed AI guidelines are part of Hong Kong’s broader strategy to enhance its competitiveness in the global financial landscape by leveraging AI technology. This move comes amid ongoing global discussions about the risks and benefits of AI in financial markets, as well as the rising need for governance and ethical standards in its application.
Global Insights Shape AI Policies
An anonymous spokesperson from the FSTB emphasized that Hong Kong is closely reviewing global AI trends to ensure that the new policies are effective and aligned with international best practices. “The government will issue a policy statement later this year, outlining its stance and approach to AI implementation within the financial sector,” the spokesperson noted.
Hong Kong is particularly focused on promoting grassroots AI development and adoption due to the restrictions imposed by the US-China tech conflict, which has limited access to leading AI tools such as OpenAI’s ChatGPT and Google’s Gemini within the region.
Regulatory Framework for Generative AI
In addition to the upcoming AI guidelines, Hong Kong’s Monetary Authority (HKMA) has already set forth guiding principles for the use of generative AI in consumer-facing applications. These principles, released in August 2024, stress the importance of governance, transparency, and robust data protection measures.
Alan Au, Executive Director of the HKMA’s banking conduct department, highlighted the growing adoption of generative AI tools in areas such as customer service chatbots, personalized product development, targeted marketing, and robo-advisors for wealth management and insurance.
“The HKMA’s principles aim to ensure that financial institutions using AI tools maintain high standards of accountability, especially when dealing with consumer-facing applications,” Au stated. The HKMA also emphasized that boards and senior management would be held fully accountable for decisions related to AI adoption, particularly those that could impact customer data protection.
As Hong Kong gears up to release its AI guidelines, the city continues to position itself as a global hub for financial innovation, while ensuring that AI technologies are used responsibly and ethically within its financial ecosystem.
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