The Hong Kong Monetary Authority (HKMA) has on Tuesday announced the launch of “Generative Artificial Intelligence Sandbox” (GenAI Sandbox) in collaboration with digital community Cyberport, aiming at promoting digital transformation and innovation in the financial industry and establishing risk management mechanisms.
Cyberport said in a statement that the “GenAI Sandbox” will provide a collaborative platform for artificial intelligence (AI) technology suppliers and banks to explore applications in risk management, fraud detection and prevention, and customer interaction.
By identifying potential risks associated, it enables banks to explore GenAI technologies safely and effectively, while allowing the solutions to receive early feedback from financial regulation and compliance for the development of practical guidance and regulatory frameworks.
“The rapid development of GenAI has brought breakthroughs across multiple fields. As Hong Kong’s digital technology flagship, many of Cyberport’s 2,000 community companies have integrated GenAI into their solutions, including many in the Fintech sector,” said Simon Chan, Chairman of Cyberport.
“The establishment of GenAI Sandbox in collaboration with the HKMA will further facilitate AI applications in the local financial sector and accelerate the adoption of AI technologies,
“It will also enhance the efficiency and security of financial services which strengthen Hong Kong’s leading position as an international financial center, and further promote AI technology, unlocking its potential to boost financial business,” he added.
It is noted that Cyberport and the HKMA have been working together to promote Fintech development in Hong Kong.
To strengthen the application of RegTech, Cyberport previously collaborated with the HKMA to launch the “FinTech Supervisory Sandbox 3.1 Pilot” and the “AML Regtech Lab (AMLab)”.
Cyberport also fully supported the HKMA’s wholesale Central Bank Digital Currency (wCBDC) Project announced in March, encouraging startups to actively participate in the project’s sandbox to explore fintech innovations and promote digital currency settlement development.
Cyberport is Hong Kong’s digital technology flagship and incubator for entrepreneurship with over 2,000 members including over 900 onsite and over 1,100 offsite start-ups and technology companies.
It is managed by Hong Kong Cyberport Management Company Limited, wholly owned by the Hong Kong Special Administrative Region Government, and committed to the
vision to inject new impetus into digital economy and smart city development through innovation and technology, and to connect enterprises to Mainland China and overseas
markets.
Cyberport strives to nurture a vibrant tech ecosystem by cultivating talents, promoting entrepreneurship among the youth, supporting start-ups, fostering technology industry
development by promoting strategic collaboration with local, Mainland Chinese and international partners, and integrating new and traditional economies by accelerating digital transformation in public and private sectors.
In a separate statement on Thursday, Singapore-based technology firm OneDegree Global said it supports the GenAI Sandbox by the HKMA and Cyberport with its AI Red Team Solutions,
“We’re supporting this AI revolution with our AI Red Team solutions at Cymetrics, the security assessment brand under OneDegree Global, that identify critical vulnerabilities and risks and ensure compliance in security, privacy, and bias,” said Alex Leung, Co-founder of OneDegree Global.
According to him, the digital domain is facing an unprecedented escalation of cyber threats, with emerging AI technologies presenting both immense potential and novel challenges.
“Alongside the exciting use cases around GenAI including large language model (LLM) applications bring new types of vulnerabilities and uncertainties to businesses who are eager to become early adopters,
“By providing scalable AI risk assessments through our automated testing platform, Cymetrics Vulcan, we help financial institutions navigate the complexities of GenAI risks, enhancing risk management and reinforcing security measures that are essential in this new environment,” he added.
OneDegree Global, incorporated in Singapore and with presence across Asia, is a leading technology company that offers IXT modern insurance core solutions and Cymetrics cybersecurity services to insurers and enterprises.