The Hong Kong government is preparing to issue its first policy statement on the use of artificial intelligence (AI) in finance. The move could accelerate the adoption of AI in trading, investment banking and cryptocurrency markets.
Bloomberg reported Tuesday that Hong Kong’s Financial Services and Treasury Bureau (FSTB) is developing a guidance framework. The framework will address ethical issues related to the use of AI. It will also set out key principles for integrating AI into the financial sector, the portal reported.
Officials are currently drafting the document, taking into account industry feedback. The bureau confirmed to Cryptonews that it plans to issue a policy statement this year outlining the government’s position and strategy on AI in the financial market.
“As artificial intelligence technology continues to evolve, the government and financial regulators are closely monitoring market developments and global experiences to promote the responsible use of AI in the financial industry,” – said the spokesman.
Bloomberg noted that the details of the policy remain unclear. But its main goal is to showcase Hong Kong’s support for AI, which is in line with global efforts to harness the technology’s potential.
Hong Kong officials to present AI framework at Fintech Week 2024
AI’s capabilities to handle large data sets, predict outcomes and automate decisions require a careful strategy to ensure both efficiency and ethical use. Such a strategy could identify how AI can be used to achieve strategic benefits, such as improving customer service through predictive analytics or improving investments using machine learning.
In addition, integrating AI in finance introduces significant changes in organizational culture, employee skills and operations. The framework will guide this transformation, including training programs, ethical decision-making and balancing human oversight with autonomous AI functions.
Specifically in Web3, AI improves smart contracts by adding advanced automation and decision-making capabilities. This enables contracts to adapt to changing conditions or new inputs, reducing the need for human supervision and increasing productivity.
Officials are expected to release their announcement in late October, during Fintech Week. The main conference and related forums will take place on October 28-29, 2024.
