Fun

Hong Kong issues generative AI guidelines for consumer protection

News Feed - 2024-08-20 05:08:04

Arijit Sarkar46 minutes agoHong Kong issues generative AI guidelines for consumer protectionThe HKMA introduces new principles for using generative AI, emphasizing governance, transparency, and data protection in consumer-facing applications.222 Total views2 Total sharesListen to article 0:00NewsOwn this piece of crypto historyCollect this article as NFTCOINTELEGRAPH IN YOUR SOCIAL FEEDFollow ourSubscribe onThe Hong Kong Monetary Authority (HKMA) issued guiding principles for generative artificial intelligence use in consumer-facing applications to safeguard end-users. 


The HKMA, Hong Kong’s central banking institution, introduced reforms to its preexisting four pillars of guidance on the use of generative AI (GenAI) in a circular issued to authorized institutions, mainly comprised of banks.


The new principles were added to the four central pillars — governance and accountability, fairness, transparency and disclosure and data privacy and protection — initially introduced for big data analytics and AI in November 2019.Hong Kong banking sector prefers generative AI for customer interaction


According to Alan Au, the executive director of the HKMA’s banking conduct department, generative AI adoption among banking institutions for customer-facing applications has skyrocketed in recent months. “Potential applications include but are not limited to customer chatbots, customized product and service development and delivery, targeted sales and marketing, and robo-advisors in wealth management and insurance.”


Noting the related consumer protection implications, Au recommended several principles for GenAI, including providing transparency to end-users through understandable disclosures.


Additionally, the HKMA expects the board and senior management to be fully accountable for any GenAI-related decisions. GenAI models used in consumer-focused applications must also ensure fair and consistent outcomes.


Related:Elaborate Elon Musk deepfake crypto fraud uncovered in Hong Kong


Lastly, the HKMA asked authorized institutions to pay special attention to safeguarding customer data.Hong Kong inaugurates gen AI sandbox for banks


On Aug. 13, the HKMA recently launched a generative artificial intelligence (GenA.I.) sandbox for finance in collaboration with Cyberport, a state-run technology company.Source:Hong Kong Cyberport Management Company Limited (Cyberport)


Hong Kong’s GenA.I. sandbox is a platform to test AI’s potential applications in finance, including risk management, anti-fraud, customer services and process re-engineering. Carmen Chu, the executive director at HKMA, explained:“This new sandbox aims to overcome the “hard” and “soft” barriers to the adoption of GenA.I., that is, the demand for computing capabilities and the need for supervisory guidance.”


The GenA.I. sandbox aims to empower banks to pilot their novel GenA.I. use cases within a risk-managed framework supported by essential technical assistance and targeted supervisory feedback.


Magazine:11 critical moments in Ethereum’s history that made it the No.2 blockchain# Hong Kong# China# Banking# Banks# Adoption# AI# Sandbox# consumer tech# RegulationAdd reaction

News Feed

An In-Depth Look at the Couple Accused of Laundering 94,636 Bitcoin From the 2016 Bitfinex Hack
An In-Depth Look at the Couple Accused of Laundering 94,636 Bitcoin From the 2016 Bitfinex Hack On Tuesday, the U.S. Department of Justice (DOJ) arrested two individuals that are a
Turner Wright2 hours agoFormer FTX engineering director faces up to 75 years in prison following guilty pleaNishad Singh’s testimony was seemingly part of the prosecutors’ strategy to establish Sam Bankman-Fried as b
US President Biden to Issue Executive Order on Crypto This Week: Report
US President Biden to Issue Executive Order on Crypto This Week: Report U.S. President Joe Biden is reportedly expected to issue an executive order on cryptocurrency this week. It
Leading NFT Marketplace Opensea Surpasses $10 Billion in All-Time Sales
Leading NFT Marketplace Opensea Surpasses $10 Billion in All-Time Sales This weekend, the non-fungible token (NFT) marketplace Opensea surpassed $10 billion in all-time sales. Stat
Restaking protocol EigenLayer flips Aave with $10.4B total value locked
Jesse Coghlan3 hours agoRestaking protocol EigenLayer flips Aave with $10.4B total value lockedEigenLayer is now the second-largest DeFi protocol behind Lido after taking Aave’s spot.640 Total views2 Total sharesListen
JPMorgan Boss Jamie Dimon: ‘If You Borrow Money to Buy Bitcoin, You’re a Fool’
JPMorgan Boss Jamie Dimon: "If You Borrow Money to Buy Bitcoin, You’re a Fool" Jamie Dimon, the CEO of one of the biggest financial institutions of the world, JPMorgan, has once
Biggest Movers: ADA Rebounds, While FIL Hits 2-Week High on Saturday
Biggest Movers: ADA Rebounds, While FIL Hits 2-Week High on Saturday Despite a largely volatile session, there have been a few tokens which managed to evade the red wave. Cardano r
Tether signs MoU to promote crypto freedom in Turkey
Helen Partz9 hours agoTether signs MoU to promote crypto freedom in TurkeyStablecoin giant Tether is eager to learn about the possibilities of introducing new business lines into Turkey’s banking in cooperation with th
Crypto Lobbying in the US Jumped 116% in 12 Months With $9.56 Million Spent in 2021
Crypto Lobbying in the US Jumped 116% in 12 Months With $9.56 Million Spent in 2021 Cryptocurrency and blockchain firms are concerned about the future legislation revolving around
Cardano’s Voltaire era nears with June hard fork milestone
Helen Partz10 hours agoCardano’s Voltaire era nears with June hard fork milestoneChang will be the first hard fork in the final era of Cardano’s roadmap, introducing community-run governance and on-chain community co
Former FTX Executive Accused of Fueling a Charity Through Discounted FTT Purchase
Former FTX Executive Accused of Fueling a Charity Through Discounted FTT Purchase A former executive of FTX allegedly earned profits for a charity by purchasing discounted FTX toke
Hong Kong’s fight against fake crypto exchanges continues
Arijit Sarkar11 hours agoHong Kong’s fight against fake crypto exchanges continuesThe Securities and Futures Commission of Hong Kong issued a warning against HKCEXP, which it claims lured investors by falsely claiming