Empowering Digital Transformation through the GenA.I. Sandbox

In a significant step towards digitalisation, the Hong Kong Monetary Authority (HKMA) and the Hong Kong Cyberport Management Company Limited collaborated to launch the Generative Artificial Intelligence (GenA.I.) Sandbox in August 2024. This initiative provides banks with a risk-controlled environment to develop and test artificial intelligence (A.I.) solutions tailored to real-world banking scenarios, driving innovation in the banking sector.

The Sandbox facilitates exploration of diverse A.I. implementation, including Retrieval-Augmented Generation, model adaptation, training and fine-tuning of models. It also provides a testing ground for A.I. models designed for real-time interaction, domain-specific assessment, decision-making support, and predictive analytics, focusing on risk management, anti-fraud measures, and customer experience. Potential applications may include:

• Risk Management: Optimise analysis of financial statements and unstructured data for enhancing credit evaluation and risk assessment.
• Anti-Fraud Measures: Detect and prevent scams, including “Deepfake” threats, by identifying fraudulent messages.
• Customer Experience: Engage customers with chatbots that generate personalised responses based on individual customer histories and interactions.

The Sandbox allows banks to more thoroughly assess the feasibility of different use cases and make necessary adjustments before full-scale implementation. This interactive and iterative approach also enables the HKMA, as supervisors, to obtain a more timely understanding of any GenA.I.-specific risks that could threaten the broader financial system, as well as to share good practices, and consider the need for providing additional guidance based on the experience gained by banks in the Sandbox.

For more details, please click here to view the relevant press release.

[Acknowledgement to the HKMA for providing material for the story.]