By the end of October, it is reported that the Hong Kong government will release policies regarding the use of artificial intelligence (AI) in the finance sector. The objective of these policies is to encourage the adoption of AI in Hong Kong’s traditional trading, investment banking, and cryptocurrency markets.
The Financial Services and the Treasury Bureau (FSTB), a government agency responsible for finance and treasury policies, will establish a framework to ensure the ethical use of AI in the finance industry. According to an unnamed Bloomberg report, officials are currently in the process of drafting the policy document and seeking feedback from the industry.
The finalized AI guidelines will be unveiled during the Hong Kong FinTech Week event, scheduled to take place from October 28 to November 1.
To develop effective policies, the FSTB spokesperson is closely studying global experiences in order to promote the responsible use of AI in the financial industry. The spokesperson also mentioned that the ongoing tech conflict between the US and China has limited the use of prominent AI tools, such as OpenAI’s ChatGPT and Google’s Gemini, in Hong Kong. Consequently, the jurisdiction is focusing on grassroots-level development and adoption of AI services.
In August, the Hong Kong Monetary Authority (HKMA) issued guiding principles for the use of generative AI in consumer-facing applications to safeguard end-users. These principles highlight the importance of governance, transparency, and data protection in such applications. Alan Au, the executive director of the HKMA’s banking conduct department, emphasized the growing utilization of generative AI applications.
The HKMA also stated that the board and senior management would be held fully accountable for any decisions related to generative AI, particularly those involving consumer-focused applications. Furthermore, authorized institutions were requested to prioritize the protection of customer data.
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