The Hong Kong government is reportedly set to unveil new policies for the finance sector concerning the utilization of artificial intelligence by the end of October. These initiatives are intended to enhance the integration of AI into Hong Kong’s traditional trading practices, investment banking, and cryptocurrency markets.
The Financial Services and the Treasury Bureau (FSTB), the government body responsible for financial policy implementation, is developing a framework that will ensure the ethical deployment of AI within financial markets. According to a Bloomberg report referencing unnamed sources, officials are in the process of drafting the policy and are actively seeking input from industry stakeholders.
The finalized AI guidelines are expected to be presented during the Hong Kong FinTech Week, which is scheduled for October 28 to November 1.
In its efforts to create effective policies, Hong Kong is closely examining global trends in AI adoption. An anonymous spokesperson from the FSTB noted the importance of promoting the responsible use of AI in the financial sector. The ongoing technological rivalry between the US and China has restricted the use of major AI tools, such as OpenAI’s ChatGPT and Google’s Gemini, within Hong Kong. Consequently, the region is focusing on grassroots development and the adoption of AI services.
In August, the Hong Kong Monetary Authority (HKMA) released guiding principles for the use of generative AI in consumer-facing applications, aiming to protect end-users. These principles underline the necessity for governance, transparency, and data protection in consumer applications. Alan Au, the executive director of the HKMA’s banking conduct department, pointed out the increasing prevalence of generative AI applications.
Furthermore, the HKMA has emphasized that the board and senior management will be held accountable for any decisions related to generative AI, particularly those that impact consumers. The authority has also urged authorized institutions to prioritize the protection of customer data.
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