Hong Kong’s financial regulators have widened a regulatory sandbox for generative artificial intelligence, extending the programme beyond banking to cover securities, asset and wealth management, insurance, pensions and stored-value facilities as authorities push to position the city as a hub for responsible AI use in finance.
The new initiative, called GenA.I. Sandbox++, was launched on March 5 by the Hong Kong Monetary Authority, the Securities and Futures Commission, the Insurance Authority and the Mandatory Provident Fund Schemes Authority, in collaboration with Cyberport.
It builds on the original GenA.I. Sandbox introduced in 2024, which had focused on the banking sector.
The expanded framework keeps its emphasis on three areas where regulators see immediate commercial and supervisory value: risk management, anti-fraud and customer experience.
Officials said the programme would also continue to promote “AI versus AI” approaches, using artificial intelligence tools to monitor and manage risks created by wider AI adoption.
Participating firms will receive supervisory feedback, technical support and access to graphics processing unit computing resources at Cyberport’s AI Supercomputing Centre, allowing them to test and refine use cases in what regulators described as a risk-controlled setting.
The move reflects a broader regulatory effort in Hong Kong to encourage innovation while keeping tighter oversight of emerging technologies in financial services.
By bringing multiple watchdogs into a single initiative, the city is trying to foster cross-sector AI applications rather than limiting pilots to one part of finance.
Examples highlighted by regulators include AI-driven insurance underwriting and claims processing, checks on suitability requirements during investment product distribution, tools for handling mandatory provident fund operations, customer service chatbots and fraud detection systems.
HKMA Chief Executive Eddie Yue said the launch marked a milestone under the central bank’s “Fintech 2030” strategy and was aimed at strengthening Hong Kong’s position as an international financial centre.
SFC Chief Executive Julia Leung said the expansion to capital market participants showed a joint push toward “responsible market innovation,” while Insurance Authority Chief Executive Clement Cheung said the initiative was meant to support AI development anchored in accountability, inclusiveness and prudence.
MPFA Managing Director Cheng Yan-chee said the pensions industry was being encouraged to explore AI to improve efficiency and service quality.
Applications for the GenA.I. Sandbox++ are open until June 30, 2026, according to secondary coverage citing the programme details, giving banks, brokers, insurers, trustees and technology partners several months to submit proposals.
