The Hong Kong Monetary Authority (HKMA) and digital technology hub Cyberport have launched a new Generative Artificial Intelligence (Gen AI) Sandbox, announced during the FiNETech2 event.

FiNETech2, co-hosted by the HKMA, Cyberport, and the Fintech Association of Hong Kong, focused on the growing role of artificial intelligence in the financial industry.

The event brought together over 300 professionals from the banking, securities, insurance, and technology sectors to explore innovative AI applications in areas such as risk management, anti-fraud measures, customer service, and process improvement.

The Gen AI Sandbox aims to facilitate collaboration between financial institutions and AI solution providers, allowing banks to pilot new Gen AI applications within a controlled environment.

The HKMA plans to use insights from the sandbox to share best practices and ensure that its guidance remains relevant as AI technology evolves.

The HKMA is also committed to supporting responsible innovation in Gen AI, including capacity-building initiatives like a recent training session attended by over 120 financial professionals.

The central bank is conducting case studies on global developments in AI, which will be shared to encourage wider adoption.

Looking ahead, the HKMA plans to host additional FiNETech events focusing on greentech and Distributed Ledger Technology (DLT), continuing its efforts to advance tintech adoption in the financial sector.

Eddie Yue, Chief Executive of the HKMA, said,

“The new Gen AI Sandbox is a pioneering initiative that promotes responsible innovation in Gen AI across the banking industry. It will empower banks to pilot their novel Gen AI use cases within a risk-managed framework, supported by essential technical assistance and targeted supervisory feedback. Banks are encouraged to make full use of this resource to unlock the power of Gen AI in enhancing effective risk management, anti-fraud efforts and customer experience.”