Hong Kong, a leading global financial center, is fostering the integration of artificial intelligence (AI) within the finance sector, promoting the development of smart cities and digital governance. The city's AI supercomputing center is currently under construction, with the first phase expected to become operational by the end of the year. Additionally, the Cyberport has recently launched a new Generative AI (GenA.I.) sandbox to support innovative developments in the banking industry.
Driving AI Innovation in Finance
On August 16, the Financial Secretary of Hong Kong, Chan Mo-po, revealed plans for the AI supercomputing center during a forum at Cyberport. The Hong Kong Monetary Authority (HKMA) President, Eddie Yue, noted that the GenA.I. sandbox represents a significant initiative to assist banks in testing innovative cases within a controlled risk framework, thereby enhancing risk management strategies.
Yue emphasized that the HKMA is also committed to fostering talent development and GenA.I. innovation, focusing on practical applications of AI in finance. Cyberport Chairperson, Simon Chan, remarked on the rapid advancements in generative AI, highlighting that many of Cyberport's 2,000 community enterprises have already integrated this technology into their services.
The collaboration between Cyberport and the HKMA in launching the GenA.I. sandbox is expected to accelerate AI applications in finance, enhancing efficiency, security, and the overall functionality of financial services. This initiative aims to solidify Hong Kong's status as an international financial hub.
Flexible Regulation for AI Integration
According to Deloitte China's AI Research Institute (Hong Kong) Director, Ma Peiwei, the sandbox will introduce more flexible regulatory conditions, allowing financial institutions and their suppliers greater freedom to explore innovative products and services while meeting compliance requirements. This approach will not only empower financial institutions to enhance service capabilities but also support the development of AI itself, ensuring that regulatory frameworks evolve with technological advancements.
Ma pointed out that Hong Kong's multilingual environment—comprised of Cantonese, Mandarin, English, and various minor languages—provides an excellent training ground for large language models, enhancing their capabilities.
Empowering Financial Institutions
AI has begun to transform various industries, including banking. HKMA Vice President, Ruan Guoheng, indicated that since the emergence of ChatGPT, the application of generative AI in banking services and operations has become a prominent topic of discussion in the financial sector. Standard Chartered Bank has introduced a comprehensive AI platform to assist financial organizations, such as reducing time costs and enhancing operational resilience in trade finance and payment management.
This AI platform employs advanced modeling techniques that can be deeply integrated into supply chain finance, supporting intelligent risk assessment and boosting operational efficiency.
Cultivating a Healthy AI Ecosystem
Hong Kong is actively and prudently nurturing its AI ecosystem. According to the Director-General of the Invest Hong Kong Financial Services and Technology, and Sustainable Development, the city is dedicated to building a healthy and sustainable market while encouraging the finance sector to seize opportunities presented by AI, thereby safeguarding overall financial security.
In 2023, the Hong Kong University of Science and Technology's Business School successfully developed the city's first open-source large language model dedicated to financial investment, named InvestLM, aimed at supporting industry professionals and researchers.
The HK government continues to promote comprehensive AI applications, establishing an "AI Ethical Framework" to guide the development and application of AI solutions across government sectors. Furthermore, efforts to build a robust tech talent pool through research initiatives and immigration programs aim to nurture local talent and attract global expertise.
In line with the AI supercomputing center construction, the government allocated significant funding to support universities, research institutions, and enterprises in utilizing its capabilities. Additionally, efforts have been made to attract key enterprises in AI, including notable startups, which are expected to drive further advancements in AI research and applications in Hong Kong.
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