Hong Kong relies on artificial intelligence in the financial industry

The Hong Kong government is preparing its first political statement on the use of artificial intelligence (AI) in the financial sector, a move that could catalyze the adoption of the technology in areas such as trading, investment banking, and cryptocurrencies. This information comes from well-informed sources. The Financial Services and the Treasury Bureau plans to publish a framework with guidelines that address both the ethical use of AI and general principles for its application in finance. Officials are currently drafting the document and soliciting feedback from the industry. The statement is expected to be unveiled at the end of October during Fintech Week. While details remain unclear, the document is intended to signal Hong Kong's support for AI. Local regulatory authorities are attempting to address some of the uncertainties surrounding AI in Hong Kong, a city caught in the technology conflict between the U.S. and China. Many consumers and companies lack easy access to leading services like OpenAI's ChatGPT or Google's Gemini, which analysts attribute to the concerns of U.S. tech companies about the Chinese territory's regulations. The proposed statement aims to promote the responsible use of AI in the financial industry. Although the document is initially expected to contain no immediately enforceable rules, it is intended to lay a foundation upon which specific regulations could later be built. This is also meant to complement separate efforts by the Technology Bureau, which is developing its own AI tools. Hong Kong seeks to reposition itself as a financial hub as foreign investors grow increasingly jittery about Beijing's growing influence and consider alternative locations such as Singapore. Meanwhile, Wall Street is also exploring how AI could reshape financial firms' operations by, for example, reviewing customer portfolios and identifying potential payment defaults. Local financial experts express concern about the difficult access to such services and regulatory uncertainties. The expected new AI guidelines are therefore anticipated to create uniform regulations and provide clarity.