Hong Kong Monetary Authority launches AI regulatory framework to promote responsible use of AI in banking industry

China News Service, Hong Kong, October 15 (Reporter Dai Xiaosu and Zhang Yuqia) The Hong Kong Monetary Authority ("HKMA") announced the "ART" framework in Hong Kong on the 15th to promote the responsible use of artificial intelligence (AI) in the banking industry to establish an AI-empowered banking ecosystem that is accountable (Accountability), resilient (Resilience) and trustworthy (Trust).

The Hong Kong Monetary Authority said that the second phase of technical testing of the Generative Artificial Intelligence (GenA.I.) Sandbox has concluded and achieved positive results. Among them, more than 60% of use cases involve exploring agent-based AI, reflecting the industry's active promotion of advanced artificial intelligence system applications; such as automatic planning and the execution of multi-step tasks within authorized and controlled limits.

Ruan Guoheng, deputy president of the Hong Kong Monetary Authority, said that AI’s transition from generative to agent-based is an important new stage of innovation in the banking industry. The HKMA has launched the “ART” framework, which aims to provide a clear basis for banks to develop and deploy AI responsibly. By combining innovation, clear accountability arrangements, resilient operating models and effective human supervision, banks can fully leverage the benefits of AI while maintaining trust and the stability of Hong Kong’s financial system.

In an interview with the media, HSBC's co-chief executive of Asia and the Middle East, Liao Yijian, said that HSBC has completed two use case tests in the HKMA's GenA.I. sandbox. One is to use generative AI to convert text into sign language to help hearing-impaired customers obtain information and use banking services; the other is used in the verification process to identify deep fake photos, tampered documents, etc., helping institutions to prevent fraud risks in advance.