HKMA Launches First Generative AI Sandbox with 15 Innovative Banking Use Cases Selected

HKMA announces inaugural cohort of GenA.I. Sandbox

The following is issued on behalf of the Hong Kong Monetary Authority:

The Hong Kong Monetary Authority (HKMA), in collaboration with the Hong Kong Cyberport Management Company Limited (Cyberport), announced today (December 19) the first cohort of the Generative Artificial Intelligence (GenA.I.) Sandbox.

A total of 15 use cases, from 10 banks and four technology partners (see Annex), have been selected as the inaugural participants in the GenA.I. Sandbox from over 40 proposals received. Each use case underwent a rigorous priorisation process conducted by a selection committee comprising subject matter experts from the academia as well as from the HKMA and Cyberport. The priorisation focused on the level of innovation, technical sophistication of the proposed solutions, expected contributions to the industry and adherence to fair-use principles (Note 1).

The proposed use cases mainly revolve around enhancing risk management, anti-fraud measures and customer experience. Through the GenA.I. Sandbox, banks will explore GenA.I.'s unique capabilities in processing vast amounts of documents and unstructured data, as well as its ability to handle cross-media inputs and outputs, such as text, audio and graphics. Notable examples include augmenting credit assessment and fraud detection by automated processing of unstructured data, and enhancing customer service to handle more personalised and complex enquiries, as an improvement over typical pre-defined chatbots.

The selected participants will be gradually onboarded to a dedicated platform of the Artificial Intelligence Supercomputing Centre operated by Cyberport, with technical trials expected to commence in early 2025 and continue through mid-2025. The HKMA and Cyberport will provide supervisory and technical guidance to participants in an interactive and iterative manner throughout the trial processes. The HKMA will also draw insights from the technical trials and share best practices with the industry.

Deputy Chief Executive of the HKMA Mr Arthur Yuen said, "We are pleased to see a keen interest from the banking industry in the exploration of GenA.I., 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 GenA.I. 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. I would also like to express my gratitude to Professor Chan (Note 2), Professor Tam(Note 3) and Professor Yiu(Note 4) for offering their valuable expert advice as part of the selection committee."

The HKMA plans to announce the application process for the second cohort of the GenA.I. Sandbox by the end of the first quarter of 2025. Initial insights and learnings from the first cohort will be shared prior to the application deadline for the second cohort to facilitate formulation of trial use cases.

Note 1:HKMA Circular, "Generative Artificial Intelligence Sandbox"issued on September20,2024

Note 2:Professor Chan Chun-kwong, Programme Director, MSc/PgD in Financial Technology, Faculty of Engineering and Professor of Practice in Financial Technology, Department of Systems Engineering and Engineering Management, The Chinese University of Hong Kong

Note 3:Professor Tam Kar-yan, Vice President for Administration and Business and Chair Professor of Information Systems, Business Statistics and Operations Management, The Hong Kong University of Science and Technology

Note 4:Professor Yiu Siu-ming, Associate Director and Professor, School of Computing and Data Science, The University of Hong Kong

42nd batch of applications approved for trials of green transport technologies and launch of Trial of Hydrogen Fuel Cell Heavy Vehicles under New Energy Transport Fund

​The Environment and Ecology Bureau today (December 19) announced its approval of the 42nd batch of applications for trials of green transport technologies under the New Energy Transport Fund.

The Steering Committee of the Fund has adopted a merit-based approach to assess applications for funding with a view to making the best use of the Fund and taking into account factors including the latest technology developments. One application has been approved in this batch (Note) for the trial of an electric special-purpose vehicle as a mobile medical clinic, involving a total subsidy of $0.75 million.

The latest approval brings the total number of trials approved under the Fund to 300, with a total subsidy of about $243 million. As at end-November 2024, a total of 210 approved trials under the Fund have been completed. Trial reports have been uploaded to the Fund's website (www.eeb.gov.hk/en/new-energy-transport-fund/AT.html#Trial_Reports).

The technology of electric vehicles and batteries is becoming more mature and has been widely used in Mainland China and overseas cities. With the subsidy from the Fund, around 140 trials of electric commercial vehicles have been completed, with around 90 trials either set to commence soon or already commenced. The feasibility of local adoption of electric commercial vehicles has been fully verified through applications. To allow the Fund to focus on subsidising new energy technologies with a more pressing need for trials in the local context in future, the Steering Committee confirmed after discussion that the Fund will cease to accept applications for trials of all types of electric commercial vehicles from April 1, 2025. Applications received before that date will continue to be assessed using the merit-based approach.

Except for electric commercial vehicles, the Fund will continue to accept applications for trials of other types of new energy commercial vehicles to expedite the green transformation of the transport trade. The Fund has also launched the Funding Scheme to Trial of Hydrogen Fuel Cell Heavy Vehicles, which is open for applications from today. For more details, please visit the website of the scheme (www.eeb.gov.hk/en/Netfund/h2trial.html).

The Government put in place the Fund in March 2011 to subsidise the testing and encourage wider use of green transport technologies for a variety of commercial transport tools, including goods vehicles (including special-purpose vehicles), taxis, light buses, buses, vessels, motorcycles, non-road vehicles (applicable to vehicle models approved by the Transport Department or the Airport Authority Hong Kong), or the aforesaid transport tools of charitable/non-profit making organisations providing services to their clients. The technologies to be subsidised include new energy vehicles or vessels, conversion of in-use conventional vehicles or vessels to new energy vehicles or vessels, and after-treatment emission reduction devices or fuel-saving devices applicable to vehicles and vessels. Transport operators and charitable/non-profit making organisations may apply for trying out different green technology products subject to a maximum subsidy of $10 million for each application and a total of $12 million for each applicant.

For more information on the Fund and the approved applications, please visit the website of the Fund (www.eeb.gov.hk/en/new-energy-transport-fund/new-energy-transport-fund.html) or call the enquiry hotline on 2824 0022.

Note: One electric special-purpose vehicle for Chinese medicine mobile clinic service by Pok Oi Hospital.