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Hong Kong’s government plans to regulate AI in finance by issuing policies at the upcoming FinTech Week.
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The Hong Kong government will reportedly issue policies for the finance sector around the use of artificial intelligence by the end of October.
By introducing new policies, Hong Kong authorities aim to increase the use of AI in Hong Kong’s traditional trading, investment banking and cryptocurrency markets.
Hong Kong’s Financial Services and the Treasury Bureau (FSTB), a government agency dedicated to implementing policies on finance and treasury, will issue a framework for the ethical use of AI in the finance markets. A Bloomberg report, citing unnamed sources, said that officials are currently drafting the policy document while getting feedback from the industry.
The AI guidelines are set to be finalized and unveiled at the Hong Kong FinTech Week event, scheduled to take place from Oct. 28 to Nov. 1.
Hong Kong reviews global AI adoption to create effective policies
The anonymous FSTB spokesperson is closely monitoring global experiences to promote the responsible use of AI in the financial industry, adding:
“The government will issue a policy statement later this year, setting out its policy stance and approach on the application of AI in the financial market.”
The ongoing US-China tech conflict prohibits the use of prominent AI tools, including OpenAI’s ChatGPT and Google’s Gemini, in Hong Kong. As a result, the jurisdiction remains keen on grassroots-level development and adoption of AI services.
Related: Hong Kong legislator eyes Bitcoin for fiscal reserves
In August, the Hong Kong Monetary Authority (HKMA) issued guiding principles for generative AI use in consumer-facing applications to safeguard end-users.
Hong Kong issues guidelines for consumer-facing generative AI tools
The generative AI principles emphasize the need for governance, transparency and data protection in consumer-facing applications. Alan Au, the executive director of the HKMA’s banking conduct department, highlighted the rise in the use of generative AI applications.
“Potential applications include but are not limited to customer chatbots, customized product and service development and delivery, targeted sales and marketing, and robo-advisors in wealth management and insurance.”
The HKMA also said it would hold the board and senior management fully accountable for any generative AI-related decisions, especially those related to consumer-focused applications.
Additionally, the HKMA asked authorized institutions to pay special attention to safeguarding customer data.
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This article first appeared at Cointelegraph.com News
