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 maintain board accountability and robust governance for all Big Data Analytics and Artificial Intelligence applications. Institutions must ensure fairness by preventing discrimination and unjustified denial of services while incorporating manual intervention mechanisms to mitigate irresponsible automated decisions. Furthermore, banks are mandated to provide transparent disclosures regarding BDAI usage, establish customer review mechanisms, and implement strict data privacy protections including privacy by design and informed consent protocols.