Description

Issued HKMA Circular on consumer protection on the use of generative AI

On 19 August 2024 the Hong Kong Monetary Authority (HKMA) issued a circular with guiding principles for consumer protection with respect to the use of generative Artificial Intelligence (GenAI) in customer-facing applications. The circular builds on the “Consumer Protection in respect of Use of Big Data Analytics and Artificial Intelligence by Authorized Institutions” of 5 November 2019 (2019 BDAI Guiding Principles) and sets out additional principles to ensure appropriate safeguards for consumer protection regarding the use of GenAI in customer-facing applications. In particular, the new principles address governance and accountability, fairness, transparency and disclosure, and data privacy and protection. Notably, the principles require for model-generated outputs to not lead to unfair bias or disadvantage against customers, provide customers with opt-out option of using GenAI, implement proper validation of the GenAI models, among others.

Original source

Scope

Policy Area
Consumer protection
Policy Instrument
Design requirement
Regulated Economic Activity
ML and AI development
Implementation Level
national
Government Branch
executive
Government Body
central government

Complete timeline of this policy change

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2024-08-19
adopted

On 19 August 2024 the Hong Kong Monetary Authority (HKMA) issued a circular with guiding principles…

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