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 The Hong Kong government is preparing to issue its first policy statement on the use of artificial intelligence (AI) in the financial sector. 
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The region’s Financial Services and Treasury Bureau (FSTB) is currently drafting a framework focused on the ethical application of AI within financial markets,<a style="color: #0000ff;" href="https://www.bloomberg.com/news/articles/2024-09-17/hong-kong-mulls-rules-on-ai-use-in-finance-as-tech-firms-retreat"> according to a new Bloomberg report</a>.&nbsp; 
The Bureau’s officials are reportedly consulting with industry stakeholders to develop the guidelines, and the final policy statement is anticipated to be released before the end of the year. 
Bloomberg reported that the release would most likely be in late October, during Hong Kong FinTech Week, which is scheduled to take place from October 28 to November 1.&nbsp; 
An anonymous spokesperson from the Bureau told Bloomberg that the Hong Kong government is carefully observing global trends to encourage the responsible use of artificial intelligence (AI) in the financial sector. This new framework is expected to address ethical concerns surrounding the use of the technology and establish key principles for its integration into the region’s financial industry. 
Notably, the Hong Kong Monetary Authority (HKMA) had, in August,<a style="color: #0000ff;" href="https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20240819e1.pdf"> issued guiding principles</a> for the use of generative AI in consumer-facing financial applications. These principles focus on governance, transparency, and data protection to ensure the safety of end users. Alan Au, Executive Director of the HKMA’s banking conduct department, emphasized the increasing adoption of generative AI for customer service, personalized product development, targeted sales, and robo-advisors in wealth management and insurance. 
The HKMA also stressed that boards and senior management would be held fully accountable for any AI-related decisions, particularly those affecting consumers, and urged institutions to prioritize customer data protection. 
At the same time, Hong Kong’s financial regulators are<a style="color: #0000ff;" href="https://defi-planet.com/2024/07/hong-kong-financial-regulators-propose-licensing-for-stablecoin-issuers-following-public-consultation/"> advancing</a> plans to regulate the stablecoin industry. Following a consultation concluded in February, where most respondents favoured regulating fiat-referenced stablecoin (FRS) issuers, the regulators have proposed a licensing framework for these issuers. According to a joint statement from the Hong Kong Monetary Authority (HKMA), Treasury Bureau, and Financial Services, this initiative is part of Hong Kong’s broader legislative push to overhaul and regulate its digital asset sector. 
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The post <a href="https://defi-planet.com/2024/09/hong-kong-to-issue-ai-policy-focused-on-ethical-use-in-financial-services/">Hong Kong to Issue AI Policy Focused on Ethical Use in Financial Services</a> appeared first on <a href="https://defi-planet.com">DeFi Planet</a>.

Hong Kong to Issue AI Policy Focused on Ethical Use in Financial Services

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