Hong Kong has unveiled its first guidelines for “responsible” application of artificial intelligence (AI) in the financial sector. Announced at the annual FinTech Week, these AI guidelines aim to help financial institutions harness the transformative potential of AI while preserving data privacy, cybersecurityAnd intellectual property. In leading this initiative, the Hong Kong government is establishing a regulatory framework to balance innovation with caution, ensuring the sustainable integration of technology into banking, asset management and other financial services.
AI guidelines require banks, brokers, asset managers and others financial institutions establish an AI governance strategy, providing guidance on how AI should be implemented and used. Institutions should also take a risk-based approach to managing AI systems and maintain human oversight to mitigate potential risks. risks.
“As an international financial center, the Hong Kong market is both open and cautious in adopting AI. » Financial Secretary Paul Chan said. “Our policy clearly sets out the government’s position on the responsible application of AI in finance. Our aim is to leverage Hong Kong’s unique position as a connector between the mainland and international markets, and through the free flow of information, we can accelerate development and productivity tailored to local needs.
Key points from Hong Kong’s AI guidelines
The AI policy statement, jointly presented by Hong Kong’s top financial and technology officials, highlights the government’s perspective on AI as a “data-driven, double-edged and dynamic” tool. . This view recognizes both the opportunities and challenges that AI presents, particularly in areas such as cybersecurity and privacy.
Some of the main points highlighted in the policy are:
- Dual track development: Aware of the potential of AI and the associated risks, the government plans to follow a two-track approach. This means promoting the growth of AI in the financial sector while addressing cybersecurity challenges, data protection and intellectual property rights.
- AI Governance Strategy: Financial institutions are encouraged to create robust governance strategies for AI, focusing on a risk-based approach to procurement, use and management. Human oversight remains an essential element in the supervision of these AI Systems.
- Support from local universities: THE University of Hong Kong of Science and Technology (HKUST) will make its self-developed AI model and computing resources available to financial institutions, providing both consulting and training services. This collaboration highlights Hong Kong’s commitment to building a strong AI infrastructure which aligns academic resources with industry needs.
- Regulatory vigilance and adaptation: As AI technology rapidly evolves, financial regulators will continue to review and update regulations to ensure they align with international practices, such as the transition to explainable AI.
- Reinforcement Cyber Police and public education: In partnership with international organizations, the Hong Kong Police will work to strengthen cyber policing efforts. Additionally, the Council on Investors and Financial Education will launch initiatives to raise awareness about the impact of AI on retail investing and financial management.
FinTech Week highlights AI and Hong Kong’s global role
Hong Kong FinTech Weekorganized by InvestHK and Finoverse, has become an important event for the financial and technology sectors in the region. The conference, now in its ninth year, runs from October 28 to November 1, attracting 700 companies and highlighting Hong Kong’s position as a strategic link between global businesses and China, the world’s second largest market. AI.
At the event, Financial Services and Treasury Secretary Christopher Hui highlighted the government’s commitment to fostering a “healthy and sustainable” AI-driven market. “We encourage financial institutions to seize the opportunities presented by AI, as it can enhance Hong Kong’s reputation as a high-quality international financial center,” he said. Hui also noted that many AI models and frameworks are available to financial firms, emphasizing that these resources could help institutions address local and global challenges.
To highlight Hong Kong’s commitment to AI, Hui presented a locally developed AI avatar, a symbolic step for Hong Kong’s future in digital technology. “We want our financial sector to make full use of these AI resources,” Hui added, highlighting the industry’s role in the region’s sustainable growth and competitiveness.
AI applications on the rise: HSBC’s perspective
Rapid adoption of AI in finance is already underway, with applications to improve productivity, customer service, programming and even coding. During a fireside chat at FinTech Week, Luanne Lim, CEO of HSBC Hong Kong, highlighted the extensive use of Generative AI (GenAI) within the bank. According to Lim, HSBC is exploring more than 100 use cases for GenAI to streamline its services and strengthen customer-facing functions.
“Generative AI brings significant benefits, but not without risks and limitations,” said Lim, who also chairs the Hong Kong Association of Banks. “This is where regulation plays an important role, and we welcome the government’s policy.” For HSBC, AI provides competitive advantage, but it also requires collaboration across the industry to build a robust and trusted digital ecosystem.
Lim believes that Hong Kong’s ambition to become a global digital innovation hub will only succeed through collaboration. “The future of AI in finance depends on a collaborative rather than competitive approach. A strong ecosystem will help boost digital transformation while ensuring responsible AI practices,” she added.
Balancing innovation and security
The adoption of AI in financial services holds great promise for Hong Kong, but it also raises cybersecurity and ethics concerns. By emphasizing the importance of a dual approach and prioritizing public education, the Hong Kong government aims to balance innovation and precaution.
The Investors and Financial Education Council, a government initiative, will work on public awareness programs on the impact of AI on retail investing and personal finance. These efforts aim to help citizens use AI-based products responsibly while understanding the associated risks.
With this new framework, Hong Kong aspires to lead by example in responsibly integrating AI into financial services.
AI policy reflects the government’s understanding that while AI can drive growth and efficiency, it must be managed with oversight and vigilance.
As Hong Kong advances its AI strategy, it sets a precedent for other financial centers seeking to embrace technological advancements without compromising security and ethical standards.