The Hong Kong Monetary Authority (HKMA), Securities and Futures Commission (SFC), Insurance Authority (IA), and Mandatory Provident Fund Schemes Authority (MPFA) have launched the Generative Artificial Intelligence (GenA.I.) Sandbox++ initiative, in partnership with Hong Kong Cyberport Management Company Limited (Cyberport).
The HKMA, SFC, IA, and MPFA serve as Hong Kong’s key financial regulators, overseeing the banking, securities, insurance, and pension sectors.
The new programme builds upon the GenA.I. Sandbox introduced in 2024. The expanded Sandbox++ framework broadens participation across several parts of the financial sector, including banking, securities and capital markets, asset and wealth management, insurance, mandatory provident fund (MPF) schemes, and stored value facilities.
The initiative retains a focus on three priority areas: risk management, fraud prevention, and improvements to customer experience. It also promotes the concept of “AI vs. AI,” which involves using artificial intelligence tools to monitor and address risks arising from the adoption of AI technologies.
Financial institutions taking part will receive supervisory guidance from regulators along with technical support. Participants will also have complimentary access to graphics processing unit (GPU) computing capacity at the Cyberport AI Supercomputing Centre. This infrastructure is intended to help institutions design, test, and refine AI applications within a controlled environment, supporting responsible development across Hong Kong’s financial system.
The initiative is also expected to strengthen collaboration between regulators, financial institutions, and technology providers. It encourages the creation of both sector-specific and cross-sector AI solutions. Potential applications include AI-supported insurance underwriting and claims handling, automated assessment of suitability requirements in the distribution of investment products, and tools to assist with MPF administration.
Additional use cases under consideration include industry-wide solutions such as intelligent customer service chatbots and advanced systems for detecting and preventing fraud.
Eddie Yue, Chief Executive of the HKMA, commented: “The launch of the GenA.I. Sandbox++ marks a significant milestone under our ‘Fintech 2030’ strategy, reinforcing our commitment to building a vibrant ecosystem for responsible innovation. By bringing together regulators, financial institutions, and the tech community, we aim to unlock AI’s full potential to drive growth, efficiency, and customer-centricity across financial services, further strengthening Hong Kong’s competitiveness as a leading international financial centre.”
Julia Leung, Chief Executive Officer of the SFC, said” “Expanding the GenA.I. Sandbox to broader capital market participants is a true testament to our collective resolve to drive responsible market innovation and a tech-enabled and future-proof financial market. We encourage licensed corporations to actively participate in this Sandbox to harness the boundless potential of AI in enhancing operational efficiency, bolstering resilience and unlocking growth.”
Clement Cheung, Chief Executive Officer of the IA, added: “The GenA.I. Sandbox++ is a collective drive made by the financial regulators to nurture an environment conducive to AI innovation anchored upon accountability, inclusiveness and prudence. This thinking aligns with our AI Cohort Programme which has generated interest in knowledge sharing and use case deployment, while attracting an inflow of talents that should help to strengthen the competitiveness of Hong Kong as a regional AI hub.”
Cheng Yan-chee, Managing Director of the MPFA, said: “To further support the healthy and innovative development of AI in the MPF industry, the MPFA strongly encourages the MPF trustees and intermediaries to actively explore the adoption of advanced financial technology solutions. By leveraging AI, MPF trustees and intermediaries can enhance operational efficiency and elevate the quality of services, thus bringing more value to benefit MPF scheme members.”
