The Hong Kong Monetary Authority (HKMA), in collaboration with the Hong Kong Cyberport Management Company Limited (Cyberport), announced the launch of the second cohort of the Generative Artificial Intelligence (Gen AI) Sandbox initiative. The announcement was made on 28 April 2025.
The Gen AI Sandbox is designed to offer a risk-controlled environment where banks can safely develop and test innovative AI-driven solutions. This initiative aims to accelerate the adoption of AI technology within the financial sector.
After the positive feedback from the inaugural cohort launched in January 2025, the second cohort that the Gen AI Sandbox Hong Kong has is set to build on its success. It will focus on use cases that improve risk management, strengthen anti-fraud measures, and enhance customer experience.
A significant addition to the second cohort of the Gen AI Sandbox Hong Kong has is the launch of the Gen AI Sandbox Collaboratory. This platform offers a series of practical workshops designed to foster early collaboration between banks and technology providers.
These workshops are designed to help turn problem statements into practical use cases, which can then be tested in the Gen AI Sandbox.
Particularly in response to the increasing threat of deepfake scams, a dedicated Collaboratory workshop will be held soon. This workshop will focus on using AI to combat deepfake attacks.
It will bring together experts from tech firms, digital banks, and small to medium-sized banks. The goal is to share actionable solutions and explore innovative detection tools.
Arthur Yuen, Deputy Chief Executive of the HKMA, said,
“Banks are encouraged to explore integrating AI into their second and third lines of defence for risk management, addressing the risks and challenges emerging from AI advancements while reaping the benefits.”
The launch was announced at FiNETech5, the fifth edition of the FiNETech series, which brought together over 150 AI experts from the banking and technology sectors.
The FiNETech event shared key insights from the first cohort participants and expert views on the latest Gen AI developments.
It also has purportedly inspired banks and technology providers to explore responsible innovation by joining the second cohort of the Gen AI Sandbox.
Source of image: Edited from HKMA