HKMA Using GenAI as a «Digital Intern»
The regulator employs the new tech to summarize reports, draft documents, and analyze trends.
Summer is on the horizon, and it can be a curious time for the far-flung international wealth manager operating from the financial hubs of Singapore and Hong Kong.
Emails start circulating between senior private bankers and executives, usually after a lunch with a large and profitable client, asking where the latter’s progeny might be placed as an intern for a couple of weeks, maybe even a month.
New Tools Introduced
The Hong Kong Monetary Authority (HKMA) has decided to go one step further this year, using GenAI as a sort of «digital intern» instead.
In an announcement earlier this April on an international conference on generative artificial intelligence, the city’s de facto regulator and central bank said it introduced GenAI tools in 2024.
Improving Efficiency
«These tools help our teams summarize reports, draft documents, and analyse trends, all within a framework that prioritizes data protection,» the HKMA indicated.
The aim is to improve the HKMA’s efficiency in performing its central banking and regulatory functions, and it complements the tools with regular staff training, providing them with the skills to critically assess output, mitigate risk, and apply AI ethically.
Not a Replacement
«Our goal is not to replace the human touch but to augment it, using AI as a «digital intern» to enhance efficiency while ensuring that human judgment remains central to decision-making,» the HKMA indicated.
It also discussed the wider adoption of GenAI among financial institutions, including the use of robo-advisers in wealth management.
Consumer Protection
«As financial institutions use more GenAI tools in customer-facing activities, the implications on consumer protection need to be properly addressed,» it said.
As a result, it released guidance on the matter to uphold the sector’s governance and accountability, giving clients the option to «opt out» of using GenAI.
Sandbox Testing
It has also introduced a GenAI sandbox that supports and pilots innovative solutions.
«The sandbox is our joint effort with the Cyberport, providing banks with targeted supervisory feedback and computing power. It enables banks to test and refine their GenAI applications in a risk-controlled environment, while allowing us as a regulator to provide guidance and share good practices on the adoption of GenAI,» the HKMA indicated.
