Regulators launch expanded GenAI Sandbox across financial sectors

The GenA.I. Sandbox++ focuses on risk management, fraud prevention, and customer experience.

The Hong Kong Monetary Authority (HKMA), Securities and Futures Commission (SFC), Insurance Authority (IA), and Mandatory Provident Fund Schemes Authority (MPFA), together with Hong Kong Cyberport Management Company Limited (Cyberport), have launched the Generative Artificial Intelligence (GenA.I.) Sandbox++ programme.

Expanding on the 2024 GenA.I. Sandbox, the new initiative now covers multiple financial sectors, including banking, securities and capital markets, asset and wealth management, insurance, mandatory provident fund (MPF), and stored value facilities.

The programme focuses on three main areas: risk management, fraud prevention, and customer experience.

It also continues to explore “A.I. vs. A.I.” approaches, using artificial intelligence (AI) to address the risks linked to AI adoption.

Financial institutions participating in the sandbox will receive regulatory guidance, technical support, and free access to GPU computing resources at Cyberport’s A.I. Supercomputing Centre.

This support is intended to help institutions develop and test AI applications in a controlled setting, promoting the responsible use of AI in Hong Kong’s financial sector.

The initiative also seeks to encourage cross-sector collaboration and innovation, supporting both sector-specific and cross-sector AI applications.

Examples include AI-driven insurance underwriting and claims processing, investment product suitability assessments, tools for managing MPF accounts, and industry-wide applications such as advanced fraud detection and intelligent customer chatbots.