Photo credit: Ben Cheung/Pexels

Hong Kong is taking bold strides into the future with its latest dual-track policy aimed at seamlessly integrating artificial intelligence (AI) into its financial services.

Hong Kong has unveiled a dual-track policy to integrate artificial intelligence (AI) into its financial services, prioritizing safety, compliance, and efficiency. 

The policy, introduced by the Financial Services and Treasury Bureau (FSTB), details how AI can streamline operations, enhance customer service, improve data analytics, bolster fraud detection, and support regulatory compliance across the sector.

In addition, the Securities and Futures Commission (SFC) is crafting specific guidelines for AI use in financial services, including ethical standards, risk management practices, and regulatory requirements. 

According to the statement, it states: “We consider that adopting a dual-track approach is most ideal for AI application in the financial services sector in Hong Kong, such that we can promote the development of AI adoption by the financial services industry while at the same time addressing the potential challenges such as cybersecurity, data privacy and protection of intellectual property rights.”

“We will work hand in hand with the financial regulators and industry players to foster a healthy and sustainable market environment, thereby facilitating the financial institutions to seize the opportunities and adopt AI in a responsible manner.” 

This oversight framework is designed to ensure AI is used responsibly in ways that protect consumer interests and uphold market stability. The SFC’s guidelines will extend to the cryptocurrency sector, specifically targeting over-the-counter (OTC) crypto service providers to bolster security and transparency.