The Hong Kong Monetary Authority (HKMA) and digital technology hub Cyberport have opened applications for its Generative Artificial Intelligence (Gen AI) Sandbox initiative, announced in August 2024.

This initiative provides a controlled environment for authorised institutions to experiment with AI-powered solutions in real-world banking scenarios.

Participants in the sandbox can utilise Cyberport’s computing resources and receive supervisory feedback from the HKMA throughout the trial process.

The regulator plans to use the insights gained from these trials to share best practices and potentially develop further guidance on AI adoption in the banking sector.

The HKMA encourages AIs to explore various AI implementation approaches, including those focused on Retrieval-Augmented Generation, model adaptation, fine-tuning of pre-trained models, or training of new models.

Trials are expected to leverage advanced AI, including GenA.I., for real-time interaction, domain-specific assessment, decision-making support, or predictive analytics, with a particular emphasis on risk management, anti-fraud measures, and customer experience.

Collaboration between authorised institutions and fintech firms is also encouraged, with Cyberport providing a catalog of potential partners and technology providers.

Applications for the first cohort of the Gen AI Sandbox are open until 15 November.

Selected projects are expected to commence in December and conclude within six months.

For further information or inquiries, interested parties can contact Nitish Koladoo of the Banking Supervision Department at GenAI_sandbox@hkma.gov.hk.

Featured image credit: Edited from Freepik