Hong Kong Updates AI Guidelines for Banking

Hong Kong Issues AI Guidelines to Protect Consumers

The Hong Kong Monetary Authority has issued new guidelines on the use of generative AI in customer-facing applications to ensure consumer protection.

The HKMA, which is Hong Kong's central bank, issued an update to the existing November 2019 guidelines on the use of generative artificial intelligence. These guidelines entail four areas: governance and accountability, fairness, transparency, and data privacy. The new principles are thus set to establish that the AI used by banks is safe and reliable for customers.

Generative AI Use in Hong Kong Banking Sector

According to Alan Au, executive director of the Banking Conduct Department at the HKMA, generative AI use by banks has "increased quite a lot recently." He added that transparency is important in recommending that banks effectively explain to customers how AI will be used.

The HKMA has also anticipated that banks' senior management would be fully responsible for all decisions taken on AI. The fairness and consistency of AI models, to be used in customer services, cannot be disregarded. The protection of customer data is paramount.

Hong Kong to Establish AI Test Platform for Banking Industry

On August 13,, the HKMA launched a "Generative Artificial Intelligence Sandbox" in cooperation with Cyberport, a state-backed technology firm. The platform would allow banks to test new AI applications in such areas as risk management, anti-fraud, customer service, and process enhancement. According to Carmen Chu, an executive director at the HKMA, the GenAI Sandbox would provide a safe environment for banks to experiment with AI and offer technical support with supervisory control.