Hong Kong Business News

The Government today issued a policy statement on the responsible application of artificial intelligence (AI) in the financial market, in which security-related issues will be duly considered in the adoption of AI in the financial services industry.

Noting that the application of AI in the financial services sector has three key attributes, namely data-driven, double-edged, and dynamic, the Government explained that it will adopt a dual-track approach to promote the development of AI adoption by the sector, while concurrently addressing the potential challenges such as cybersecurity, data privacy and protection of intellectual property rights.

Another key point of the policy statement is that financial institutions should formulate an AI governance strategy to provide direction on how AI systems should be implemented and used. A risk-based approach should be adopted in the procurement, use and management of AI systems and human oversight will be crucial to mitigating the potential risks.

Additionally, the Hong Kong University of Science & Technology will make its self-developed AI model and computing resources available to Hong Kong's financial services industry, and offer advisory and training services for on-premises deployment or Application Programming Interface & Web Interface options.

 As for financial regulatees, the potential risks posed by AI have been suitably reflected in the relevant regulations/guidelines issued by financial regulators. To keep pace with the latest developments of AI and international practice, such as the emergence of explainable AI, financial regulators will continuously review and update the regulations/guidelines as appropriate.

Meanwhile, Police are exchanging intelligence with international organisations, law enforcement agencies of different jurisdictions and the AI industry to address the challenges on cyber policing posed by AI.

On public education, the Investor & Financial Education Council will raise public awareness and enhance understanding on the opportunities and risks presented by AI technology in terms of retail investing and financial management.

Financial Secretary Paul Chan stressed that the policy statement clearly sets out the Government's policy stance and approach towards the responsible application of AI in the financial market.

“As the AI technology is constantly evolving, we will closely monitor market developments, draw on the Mainland and overseas experience, and fully leverage the unique advantages of Hong Kong in bringing together the Mainland and international data as well as the free flow of information in promoting the use of AI in the financial sector to accelerate the development of new quality productive forces tailored to local conditions.”

Secretary for Financial Services & the Treasury Christopher Hui said that the Government will work hand in hand with the financial regulators and industry players to foster a healthy and sustainable market environment, thereby facilitating the financial institutions to seize the opportunities and adopt AI in a responsible manner.

“Such efforts will promote the high-quality development of Hong Kong as an international financial centre. There are plenty of AI models and infrastructures available to financial institutions, accounting firms and solution providers. We encourage the financial services industry to make full use of these resources in the market.”

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