A recently conducted study revealed that the financial service industry in Hong Kong is swiftly adopting GenAI into its operations.
While the possibility of artificial intelligence (AI) taking over jobs is a concern that looms over every industry, it is an undeniable truth that generative AI (GenAI) has certainly benefited all industries. Some of the key sectors, such as technology and finance, have taken the lead in maximising the use of GenAI to further expansion, innovation, and overall growth.
Hong Kong is vying to claim the position of the fastest-growing financial and technological hub in the world. To that end, a recently conducted study revealed that the financial service industry in Hong Kong is swiftly adopting GenAI into its operations. According to the survey, 75% of companies reviewed are designing or implementing at least one use case.
Conducted by the Hong Kong Institute for Monetary and Financial Research (HKIMR), which is the research arm of the Hong Kong Academy of Finance, the study has projected that over the next three to five years, this number will go from 75 to 90%.
The research has also concluded that larger financial institutions have been more susceptible to adopting GenAI, with 83% of companies admitting to rolling out at least one GenAI use case or taking steps towards its integration. There was a 20% gap when compared to smaller financial firms, with only 63% responding positively.
The South China Morning Post has reported that Enoch Fung, CEO of the Academy of Finance and executive director of HKIMR said that GenAI applications have the potential to offer a more curated customer experience in the financial services industry and process and utilise digital information more efficiently.
55 companies across sectors like wealth and asset management, insurance etc participated in this survey. These firms comprise 57% of the total deposits in the banking sector and 48% of the total premiums in the insurance sector.
GenAI is important for companies, as it allows models to learn from patterns in training data to in turn create outputs in the form of text, images, audio or video. Earlier this week, a DeepSeek-powered chatbox launched by Hong Kong’s largest online broker Futu Securities International made headlines when it offered a detailed analysis of how the conglomerate CK Hutchinson’s attempt to sell strategic ports in Panama would impact stock prices.
The use of GenAI can help amateur investors who lack professional tools for data sorting or analysis. Such financial consultancy firms are improving their client interactions, research methodology, risk management and investment decisions with the help of AI.
Brokerages are also utilising GenAI to increase their retail investor base, who are not equipped with the time, or the professional tools brokerages require to conduct thorough research and data analysis. These GenAI chatboxes are like personalised financial assistants. But more advanced AI tools like the DeepSeek-powered Futu’s Algo Trading also allow advanced investors to automate trading without having to monitor real-time data.
While there are many concerns raised over seeking financial advice from a trained chatbox, these GenAI tools also preach caution. Models like Futu remind clients that the chatbox’s responses should not be taken at face value, and all investment decisions must be made only after thoroughly assessing the personal circumstances of the investors.
There are also concerns regarding data privacy, model accuracy and other constraints on resources and talent. Hong Kong authorities have been quick in updating regulations and issuing guidelines for the same. Circulars and notices have been promoted, along with a GenAI sandbox initiative.
The study however advises more initiatives to regulate this sector, such as financial literacy programs, and collaboration between all stakeholders to discuss issues like data localisation, data sharing and data protection and accountability. GenAI is here to stay, and authorities and industry experts have to accept this reality and adopt a more accommodative and accountable sector so as to minimise any possible losses or financial mishaps from occurring.