- Generative AI in the Banking Sector
- Transparency and Accountability in AI Usage
- Launch of Generative AI Sandbox
The Hong Kong Monetary Authority (HKMA) issued guiding principles for the use of generative AI in consumer-facing applications to safeguard end-users.
Generative AI in the Banking Sector
According to Alan Au, the executive director of the HKMA’s banking conduct department, the adoption of generative AI among banking institutions for customer-facing applications has skyrocketed in recent months. Potential applications include customer chatbots, customized product and service development and delivery, targeted sales and marketing, and robo-advisors in wealth management and insurance.
Transparency and Accountability in AI Usage
Noting the related consumer protection implications, Au recommended several principles for generative AI, including providing transparency to end-users through understandable disclosures. Additionally, the HKMA expects the board and senior management to be fully accountable for any Generative AI-related decisions. Generative AI models used in consumer-focused applications must also ensure fair and consistent outcomes.
Launch of Generative AI Sandbox
On August 13, the HKMA, in collaboration with Cyberport, a state-run technology company, recently launched a generative AI sandbox for the finance sector. The sandbox is a platform to test AI’s potential applications in finance, including risk management, anti-fraud, customer services, and process re-engineering. Carmen Chu, the executive director at HKMA, explained that the sandbox aims to overcome the “hard” and “soft” barriers to the adoption of generative AI, that is, the demand for computing capabilities and the need for supervisory guidance.
The HKMA urges banks to pay special attention to safeguarding customer data and to utilize the generative AI sandbox to safely test new technologies in financial applications.
Comments