HKMA, Cyberport collaborate on GenAI sandbox to foster adoption in city’s banking industry

The sandbox serves as a framework, with computing resources and supervisory guidance, to help banks test and build their GenAI applications

Reading Time:2 minutes

The AI-generated avatars of HKMA chief executive Eddie Yue Wai-man and deputy chief Arthur Yuen Kwok-hang at the GenAI sandbox launch on Tuesday: Photo: HKMA

Published: 9:00pm, 14 Aug 2024

The Hong Kong Monetary Authority (HKMA) and tech hub Cyberport have launched a generative artificial intelligence (GenAI) sandbox to help foster adoption of the technology in the city’s banking industry, while mitigating potential risks.

HKMA chief executive Eddie Yue Wai-man, who is serving a second five-year term as the city’s de facto central banker, said at the launch on Tuesday – via his AI-generated avatar – that the sandbox “will empower banks to pilot their novel GenAI use cases within a risk-managed framework, supported by essential technical assistance and targeted supervisory feedback”.

“Banks are encouraged to make full use of this resource to unlock the power of GenAI in enhancing effective risk management, anti-fraud efforts and customer experience,” Yue said.

The HKMA did not specify the eligible requirements for the GenAI sandbox and its application process, but said these details would be announced in due course.

Hong Kong Monetary Authority executive director Carmen Chu Lap-kiu delivers the opening remarks at the GenAI sandbox launch on Tuesday. Photo: HKMA

GenAI refers to the algorithms and services, such as ChatGPT, that are used to create new content, including audio, code, images, text, simulations and videos.