Regulatory Alerts2024-08-19
Added · Updated
Consumer Protection in respect of Use of Generative Artificial Intelligence
The Hong Kong Monetary Authority issues guiding principles requiring authorized institutions to extend existing big data analytics standards to generative AI applications in customer-facing services. Institutions must ensure robust governance, fairness, transparency, and data privacy, specifically addressing risks like hallucination by implementing human-in-the-loop controls and opt-out mechanisms. The circular also encourages the proactive use of these technologies to enhance consumer protection through vulnerability identification and fraud alerts.