In line with industry developments, the Hong Kong Monetary Authority has launched a new sandbox focused on generative artificial intelligence.
The Hong Kong Monetary Authority (HKMA) has launched a generative artificial intelligence (GenAI) sandbox, according to a statement, in collaboration with Cyberport – a business park in Hong Kong that houses 1,800 digital and tech firms.
«Through interactive engagement with the industry, the HKMA will draw insights from the GenAI Sandbox and share good practices, while keeping its guidance relevant and fit-for-purpose in the light of the latest development,» the regulator said, adding that details, including eligibility criteria and application process, will be announced in due course.
FiNETech Series
The launch of the sandbox was announced during FiNETech2, the second edition of the FiNETech event series, co-hosted by the HKMA, Cyberport and the FinTech Association of Hong Kong. FiNETech2 attracted over 300 professionals from the banking, securities, insurance, and technology sectors.
The inaugural FiNETech event was held in April 2024 and there are plans to organize additional editions in the coming months.
Regulator Efforts
In addition to the new sandbox, HKMA has also been making other recent efforts to promote the adoption of GenAI. This includes an AI training session attended by over 120 financial professionals. The banking regulator is also conducting case studies on the latest international developments in the field and will look to share practices observed.
«The new GenA.I. Sandbox is a pioneering initiative that promotes responsible innovation in GenAI across the banking industry,» said HKMA chief executive Eddie Yue.
«It will empower banks to pilot their novel GenAI use cases within a risk-managed framework, supported by essential technical assistance and targeted supervisory feedback. Banks are encouraged to make full use of this resource to unlock the power of GenAI in enhancing effective risk management, anti-fraud efforts and customer experience.»
