The Hong Kong Monetary Authority (HKMA) and Cyberport have announced the first cohort of its Generative Artificial Intelligence (Gen AI) Sandbox initiative.
This program aims to explore the potential of generative AI in the banking sector through innovative and practical use cases.
From over 40 proposals, 15 use cases submitted by 10 banks and four technology partners have been selected.
The participating banks are Bank of China (Hong Kong), China CITIC Bank International, China Construction Bank (Asia), Citibank (Hong Kong), Dah Sing Bank, Hang Seng Bank, HSBC, Livi Bank, Societe Generale, and Standard Chartered.
The technology partners include Aereve, Alibaba Cloud, Baidu, and FORMS HK.
The selected proposals focus on enhancing risk management, fraud prevention, and customer experiences.
Examples include AI-powered AML Suspicious Transaction Reporting (STR), enhanced Know Your Customer (KYC) with unstructured data, and intelligent assistants for fraud investigators.
Other applications aim to improve customer service with AI-enhanced interactivity for more complex inquiries, advancing beyond typical pre-defined chatbot capabilities.
Participants will begin technical trials on a platform operated by Cyberport’s Artificial Intelligence Supercomputing Centre in early 2025.
The onboarding process will be gradual, and the trials will be conducted in an interactive and iterative manner, with supervisory and technical guidance from both HKMA and Cyberport.
Insights from the trials will be shared with the broader industry to establish best practices.
Initial findings will also be shared before the application deadline for the second cohort, set to be announced by the end of Q1 2025, to guide prospective participants.
Arthur Yuen, Deputy Chief Executive of the HKMA, said,
“We are pleased to see a keen interest from the banking industry in the exploration of Gen AI, reflecting the eagerness and openness of banks of all sizes to utilise novel technologies in their operations and services.
As the market continues to develop more innovative ideas, the Gen AI Sandbox remains ready to provide a risk-controlled testing ground for the industry. We look forward to seeing the results from our participants and sharing these experiences with the industry.”