THE Hong Kong Special Administrative Region (HKSAR) government issued a policy statement on Monday, outlining its stance and guidelines for the responsible application of artificial intelligence (AI) in the financial market, aiming to promote the use of AI in finance, according to the official website of the Hong Kong government.
Analysts said that such efforts will not only support Hong Kong’s deep integration in AI and regulatory development but also further consolidate its status as an international financial hub.
The policy statement clearly sets out the HKSAR government’s policy stance and approach toward the responsible application of AI in the financial market, said HKSAR Financial Secretary Paul Chan Mo-po on Monday.
The HKSAR government will adopt a dual-track approach to promote the development of AI adoption by the financial services sector while at the same time addressing the potential challenges, such as cybersecurity, data privacy and protection of intellectual property rights, according to a press release on the HKSAR government’s website.
The HKSAR will also work hand-in-hand with financial regulators and industry players to foster a healthy and sustainable market environment, thereby facilitating financial institutions to seize opportunities and adopt AI in a responsible manner, Christopher Hui, secretary for financial services and the treasury of the HKSAR, said.
The Hong Kong University of Science and Technology will make its self-developed AI model and its computing resources available to Hong Kong’s financial services industry and offer advisory and training services for on-premises deployment or application programming interface and web interface options, according to the HKSAR.
The application of AI in the financial sector holds immense potential, capable of greatly enhancing the efficiency of financial activities with virtually limitless scalability, Liu Gang, chief economist at the Chinese Institute of New Generation AI Development Strategies, told the Global Times on Monday. He added that future international settlement and transaction networks in finance are poised to benefit significantly from AI advancements.
“By combining technological support with a clear regulatory framework to foster the financial services industry, Hong Kong will be better positioned to leverage market resources effectively and capture emerging opportunities,” Liu said.
The adoption rate of AI in Hong Kong’s financial sector stands at 38 percent, surpassing the global average of 26 percent, said Hui at Hong Kong FinTech Week 2024 on Monday.
In September, Hong Kong ranked third globally in the Global Financial Centers Index, up one position from March, and it claimed the top spot in the Asia-Pacific region, data from the Global Financial Centers Index 36 showed.
Liu said that the status of a regional international financial center is closely tied to its technological advancements, with the effective application of AI providing critical support.
“Legal frameworks and regulations should work in tandem with technological progress. Technology use relies not only on the capabilities of the technology itself but also on the responsibility of its users,” Liu added.
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