Hong Kong finance regulators push AI to police AI risks

The programme builds on the Gen AI Sandbox launched in 2024.

Hong Kong financial regulators have launched a new initiative to expand the use of generative artificial intelligence (AI) across the city’s financial sector.

The Hong Kong Monetary Authority, the Securities and Futures Commission, the Insurance Authority, and the Mandatory Provident Fund Schemes Authority announced on 5 March the launch of the Generative Artificial Intelligence (GenA.I.) Sandbox++. 

The initiative is being introduced in collaboration with Hong Kong Cyberport Management Company Limited.

The programme builds on the GenA.I. Sandbox launched in 2024 and expands its scope to cover several financial sectors, including banking, securities and capital markets, asset and wealth management, insurance, mandatory provident fund (MPF), and stored value facilities.

The expanded sandbox will continue to focus on three areas: risk management, anti-fraud measures, and customer experience. 

It will also promote “AI vs. AI” approaches, where artificial intelligence is used to manage risks linked to the adoption of AI technologies.

Financial institutions taking part will receive supervisory guidance and technical support from regulators. 

They will also be given complimentary access to graphics processing unit computing resources at Cyberport’s AI Supercomputing Centre to help develop and test AI applications in a controlled environment.

Regulators said the initiative aims to support collaboration between financial institutions, regulators and technology companies, and to encourage both sector-specific and cross-sector AI applications. 

Examples include AI-driven insurance underwriting and claims processing, compliance assessments during the distribution of investment products, tools for handling MPF services, intelligent customer chatbots, and fraud detection systems.

Eddie Yue, chief executive of the Hong Kong Monetary Authority, said the launch of GenA.I. Sandbox++ is part of the authority’s “Fintech 2030” strategy to support responsible innovation in financial services.