In light of advances in big data analytics and artificial intelligence (BDAI), the Hong Kong Monetary Authority (HKMA) has issued updated principles to ensure consumer protection when using Generative AI (GenAI). The HKMA’s 2019 BDAI Guiding Principles, which cover governance, fairness, transparency, and data protection, are now extended to include GenAI. This technology, which creates new content from extensive data, poses additional risks like lack of explainability and “hallucination” (generating misleading outputs). To address these, the HKMA mandates rigorous governance and accountability, fair and unbiased outcomes, clear transparency about GenAI use, and robust data privacy measures. Banks are encouraged to use BDAI and GenAI to enhance consumer protection, such as identifying vulnerable customers and preventing fraud. For inquiries, contact Ms. Cherry Yip or Mr. Michael Leung at the provided numbers.
Resources: https://www.hkma.gov.hk/media/eng/doc/key-information/guidelines-and-circular/2024/20240819e1.pdf
