By the end of October 2024, Hong Kong will have put in place its first set of rules for the use of artificial intelligence (AI) in the banking industry. These rules will show how AI can be used in standard finance, financial banking, and coin markets in an ethical way.
The Financial Services and the Treasury Bureau (FSTB) is working on the policy framework with help from people in the business. We plan to release the final rules during Hong Kong’s yearly FinTech Week, which runs from October 28 to November 1, 2024.
Promoting the smart use of AI in finance
Hong Kong’s government is closely looking at global trends in AI adoption to come up with effective rules that encourage smart use of AI. The new rules are meant to find a middle ground between encouraging new AI ideas and protecting investors and consumers. While AI has a lot of potential, these rules will make sure that important issues like openness, accountability, and data security are taken care of. This is especially important for apps that interact with customers, like robots and robo-advisors in wealth management.
The Hong Kong Monetary Authority (HKMA) released guidelines earlier this year for generative AI in financial services. These guidelines stress the need for data security and responsibility. It’s possible that these principles will be the basis for the new AI rules, which will make organizations responsible for how they use AI in their work.
Getting across the political AI gap
While Hong Kong is trying to control AI, the U.S. and China are still having tech problems that make it hard for people in the region to use some AI services, like OpenAI’s ChatGPT and Google’s Gemini. We think that the new AI standards will provide much-needed clarity, allowing the safe integration of AI into banking systems and encouraging new ideas in our own country.
As the need for AI control grows around the world, Hong Kong is setting itself up to be a leader in finding a middle ground that both supports AI growth and answers ethical issues.
