Hong Kong to Announce AI Policies for Finance Sector by October End

The Hong Kong government plans to release policies regarding the use of artificial intelligence (AI) in the finance sector by the end of October.

The new policies reportedly aim to increase AI adoption in various financial markets, such as traditional trading, investment banking, and cryptocurrencies, according to a Bloomberg report. The Financial Services and the Treasury Bureau (FSTB), which is responsible for financial policy in Hong Kong, is said to be drafting a framework for the ethical use of AI in these markets. Officials are also currently working on the policy document and gathering feedback from the financial industry.

An unnamed spokesperson from the FSTB stated, “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 guidelines are expected to be finalized and presented at Hong Kong FinTech Week, which is scheduled to take place from October 28 to November 1, 2024.

The FSTB is looking at global experiences to develop policies that ensure the responsible use of AI in the financial industry. This approach is intended to shape guidelines that align with international standards while catering to the unique needs of Hong Kong’s financial markets.

Due to the ongoing tech conflict between the United States and China, the use of certain prominent AI tools, including OpenAI’s ChatGPT and Google’s Gemini, is restricted in Hong Kong. In light of these limitations, Hong Kong is focusing on the local development and adoption of AI tech. The upcoming policy framework will likely address these specific conditions to ensure a tailored approach to integration.

In August, the Hong Kong Monetary Authority (HKMA) introduced guiding principles for the use of generative AI in consumer-facing applications. The guidelines emphasize the need for governance, transparency, and data protection.

Alan Au, Executive Director of the HKMA’s Banking Conduct Department, mentioned, “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.”

The HKMA has also stated that senior management and the board of financial institutions will be held fully accountable for decisions related to generative AI, especially those impacting consumers. Institutions are advised to ensure robust safeguards for customer data.

Lawrence does not hold any crypto asset. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.

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