The Hong Kong Monetary Authority (HKMA), Securities and Futures Commission (SFC), Insurance Authority (IA), and Mandatory Provident Fund Schemes Authority (MPFA) have jointly invited regulated institutions to apply to participate in the GenAI Sandbox++.
The initiative expands the scope of the existing GenAI Sandbox. It will now cover sectors beyond banking, including securities and capital markets, asset and wealth management, insurance, mandatory provident fund (MPF), and stored value facilities.
Launched in 2024, the original GenAI Sandbox provided a controlled testing environment for authorised institutions in the banking sector. It enabled them to develop and test AI-driven solutions.
According to the regulators, the initial cohorts drew strong industry interest. The trials also highlighted the potential of AI to improve operational efficiency, strengthen risk management, and enhance customer engagement.
Participants explored “AI vs. AI” approaches to manage risks associated with AI adoption. These included using artificial intelligence tools to conduct automated quality checks on outputs generated by other AI systems.
Building on these developments, the four regulators have partnered with Hong Kong Cyberport Management Company Limited (Cyberport) to broaden the initiative.
Under the GenAI Sandbox++, participating institutions will receive complimentary access to graphics processing unit (GPU) computing resources. These resources are available at Cyberport’s AI Supercomputing Centre.
The programme will also provide supervisory guidance from relevant regulators and technical support from Cyberport.
The expanded sandbox is open to authorised institutions under the Banking Ordinance. It is also open to authorised insurers and licensed insurance broker companies under the Insurance Ordinance.
In addition, MPF approved trustees and principal intermediaries under the Mandatory Provident Fund Schemes Ordinance are eligible to participate.
Licensed corporations under the Securities and Futures Ordinance can also apply.
The sandbox is also open to stored value facility licensees under the Payment Systems and Stored Value Facilities Ordinance.
To encourage collaboration, GenAI Sandbox Collaboratory workshops will be organised with technology firms.
The sessions aim to help institutions develop sector-specific and cross-sector AI applications through ideation and rapid prototyping.
Applications for the GenAI Sandbox++ are open until 30 June 2026, with institutions able to apply through channels administered by their respective regulators.
Featured image credit: Edited by Fintech News Hong Kong, based on image by lifeforstock and rawpixel.com via Freepik
