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Hong Kong is preparing to launch a comprehensive AI regulatory framework aimed at ensuring the responsible use of AI in finance.
The country’s Financial Services and Treasury Bureau is expected to unveil the new AI guidelines during the upcoming Fintech Week in late October 2024.
According to Bloomberg, the framework will focus on the ethical use of AI across critical financial areas, including trading, investment banking, and cryptocurrency. The government aims to support AI innovation while safeguarding consumers and investors, as AI’s role in finance continues to grow globally.
In line with these efforts, the Hong Kong Monetary Authority (HKMA) has already launched a regulatory sandbox, allowing banks to experiment with generative AI in a controlled environment.
However, the specifics of how AI will be applied in real-world financial scenarios remain uncertain, and the new guidelines will likely address this gap.
Local lawmakers in Hong Kong are also responding to growing investor concerns over the geopolitical tensions between the U.S. and China, which according to Bloomberg have complicated access to AI services such as ChatGPT and Gemini in the region.
These proposed regulations come at a time when the call for AI safety is gaining serious momentum globally. In August, the U.S. AI Safety Institute announced it’s entered into an agreement with Anthropic and OpenAI to allow the body to test AI models before public use.
The upcoming regulations are expected to set the tone for the responsible integration of AI in finance and provide much-needed clarity on investor concerns over AI use in the country’s financial sector.
