Hong Kong unveils rules for ‘responsible’ AI use as it gets ahead of disruptive technology Hong Kong’s government outlined its first guidelines on the “responsible” use of artificial intelligence (AI) and embraced blockchain, as regulators strive to get ahead of the technological revolution that will almost certainly disrupt financial services. “Blockchain and AI are the two fields of innovation in fintech”, Financial Secretary Paul Chan Mo-po said during the opening of the FinTech Week. “Hong Kong’s financial market is open and prudent towards the application of AI, [so] we will closely monitor the developments and draw on the experiences of the mainland and overseas” because the technology is “constantly evolving”, he said. Banks, brokers, asset managers and any other financial institutions that wants to use AI “must formulate an AI governance strategy to provide direction on how [the] systems should be implemented and used, and offer advisory and training services for on-premise deployment”, the government said in a press release before Chan’s speech. AI has become the focus of FinTech Week, the annual event that has been hosted for nine years by InvestHK and Finoverse. This year’s conference, which runs from October 28 to November 1, will emphasise Hong Kong’s role as the “connector” between international business and China, the world’s second-largest AI market behind the US. About 700 companies are exhibiting at the weeklong event, including SenseTime, Tencent Holdings and ByteDance. The government intends to fully leverage Hong Kong’s advantages to bring together the mainland and international data as well as the free-flow of information to promote the use of AI in the financial sector for accelerating the development of new tools tailored to local conditions, Chan said. Chan said Hong Kong is well placed to tap fintech opportunities arising from blockchain and AI, since the city accounted for two of the largest fintech transactions in the Asia-Pacific in the first six months, while the mainland accounted for three of the top five. The number of fintech and so-called Web3 internet companies rose 15 per cent from last year to 1,100. To better understand AI, the Hong Kong University of Science and Technology (HKUST) will make its AI model, its computing resources and training available to Hong Kong’s financial services industry, Chan said. The HKUST was the highest-ranked local institution last year in data science, placing 10th globally in the QS Top Universities Ranking. “Innovation is not an end in itself, but a means to solve real-world problems,” said Eddie Yue Wai-man, the CEO of the HKMA. “Whether it’s faster payments or better banking access for SMEs, technology is a means to help transform everyday experiences and bring benefits to the real economy.” Hong Kong “will work hand in hand with financial regulators and industry players to foster a healthy and sustainable market environment”, said Christopher Hui Ching-yu, the Secretary for Financial Services and the Treasury. Hui showed off an AI avatar during his FinTech Week speech that he said was “born and bred” in Hong Kong. Financial institutions must ‘seize the opportunities” of AI adoption, because the technology can facilitate the promotion of the city and drive the development of Hong Kong as an international financial centre, he added. Financial regulators will review and update existing regulations and guidelines, and work with local police enforcement and international agencies to address the challenges AI poses for cyber policing, said Hui. Amid growing concerns of cybersecurity, the Investor and Financial Education Council will promote public education and public awareness to enhance understanding of the opportunities and risks presented by AI, especially in financial management. Generative AI (Gen AI) has brought many benefits to the financial industry, but “not without risks and limitations”, said Luanne Lim, the CEO of HSBC Hong Kong during a fireside chat on Monday. The future of AI and technology in Hong Kong will require “collaboration rather than competition” she added. “At the heart of this is Hong Kong’s ambition to be a digital innovation hub, and it’s something that will only happen if we have a strong ecosystem in Hong Kong.” https://www.scmp.com/business/banking-finance/article/3284120/hong-kong-unveils-rules-responsible-ai-use-it-gets-ahead-disruptive-technology (ICE HONG KONG)

Fonte notizia: South China Morning Post