The Hong Kong government published a policy on the responsible use of artificial intelligence (AI) in the financial sector. The document emphasizes support for innovation, risk management, and data protection.
The Hong Kong Financial Services and the Treasury Bureau (FSTB) released a document outlining the bureau’s overall approach to the use of AI in the financial services industry. The document focuses on improving user experience, efficiency and security through the use of artificial intelligence. The regulator also defines principles for the responsible use of AI developments.
In particular, the FSTB representatives highlighted several areas in the document where the use of AI is particularly promising, namely:
- research and data analysis;
- investment strategy development;
- customer service improvement;
- risk assessment automation;
- crime detection and prevention;
- operational process optimization.
In addition, the FSTB formulated an approach to facilitate the adoption of AI technologies and address potential challenges associated with this process. The government intends to work with financial regulators and service providers to implement the proposed initiative.
Currently, AI technologies in Hong Kong’s financial industry are used in the securities market, as well as in banking, insurance, accounting, pension fund management, and environmental initiatives. The government plans to set up a special supervisory system to mitigate various risks associated with the introduction of AI developments, including the protection of all stakeholders, particularly in relation to job losses and respect for intellectual property rights.
The Securities and Futures Commission of Hong Kong (SFC), the local financial regulator, is also planning to publish a document soon detailing the rules, regulations, and risks associated with the adoption of AI technologies.
Local regulators previously began the process of aligning reporting requirements for over-the-counter (OTC) transactions with international standards.
