The government has recently released a policy statement regarding the responsible use of artificial intelligence (AI) in the finance market. The statement emphasizes the importance of addressing challenges associated with AI while also promoting its development in a responsible manner. Financial Secretary Paul Chan highlighted the government’s open and prudent approach to AI application in the finance sector, with a focus on issues like cybersecurity and intellectual property rights.
Chan mentioned that the government will closely monitor market trends and learn from experiences both locally and internationally to ensure the effective use of AI in finance. He emphasized the need to accelerate the development of new quality productive forces tailored to Hong Kong’s unique conditions through the promotion of AI.
During his speech at Hong Kong Fintech Week, Chan proposed a dual-track model for AI adoption, encouraging the capture of opportunities while evaluating associated risks periodically to mitigate them effectively. Secretary for Financial Services and the Treasury Christopher Hui shared that the University of Science and Technology will make its AI language model, InvestLM, available for use by financial firms, including small businesses in the sector.
Hui highlighted that a significant percentage of local financial institutions are already utilizing AI, surpassing the global average. The policy statement underscored the data-driven and dynamic nature of AI in finance, acknowledging its potential benefits and risks. It emphasized the importance of AI as a tool that should complement human judgement and analysis rather than replace it entirely.
The government recommended that financial institutions develop AI governance strategies to guide the implementation and use of AI systems. A risk-based approach should be adopted in the procurement, use, and management of AI technologies, with human oversight playing a crucial role in mitigating potential risks. The statement also mentioned that relevant regulations and guidelines issued by financial regulators address the risks associated with AI in finance.
Additionally, officials highlighted collaborative efforts between local police, overseas counterparts, and the AI industry to tackle cyber policing challenges posed by AI. By exchanging intelligence and working together, they aim to address potential risks and ensure the responsible and effective use of AI in the finance market.