Hong Kong’s financial regulators have expanded a regulatory sandbox for generative AI, expanding the program beyond banking to include securities, asset and wealth management, insurance, pensions and stored value facilities as authorities seek to position the city as a hub for responsible AI use in finance.
The new initiative was named GenA.I. Sandbox++It was implemented on March 5 by. Hong Kong Monetary Authority, Securities and Futures Commission, Insurance Authority And Mandatory Provident Fund Programs Authorityin collaboration with Siberport.
Built on the original GenA.I. Sandbox, focusing on the banking sector, was introduced in 2024.
The expanded framework continues to emphasize three areas where regulators see direct commercial and supervisory value: risk management, anti-fraud and customer experience.
The program will also continue to support “AI versus AI” approaches, using AI tools to monitor and manage risks posed by broader adoption of AI, officials said.
Participating companies will receive supervisory feedback, technical support and access to graphics processing unit computing resources at Cyberport’s AI Supercomputing Center, allowing them to test and improve use cases in what regulators describe as a risk-controlled environment.
The move reflects a broader regulatory effort to encourage innovation while keeping tighter oversight of emerging technologies in financial services in Hong Kong.
By bringing multiple observers into a single initiative, the city is trying to encourage cross-sector AI applications rather than limiting pilots to a fraction of the funding.
Examples highlighted by regulators include AI-enabled insurance underwriting and claims processing, checks on eligibility requirements during investment product distribution, tools to manage compulsory provident fund operations, customer service chatbots and fraud detection systems.
HKMA Chief Executive Officer Eddie Yue He said the launch is a milestone within the central bank’s “Fintech 2030” strategy and aims to strengthen Hong Kong’s position as an international financial centre.
SFC Chief Executive Julia Leung said the expansion to capital market participants demonstrates a concerted effort towards “responsible market innovation”, while Insurance Authority Chief Executive Clement Cheung said the initiative aims to support AI development based on accountability, inclusivity and common sense.
MPFA General Manager Cheng Yan-chee said the pension industry is encouraged to explore artificial intelligence to improve efficiency and service quality.
GenA.I. Applications for Sandbox++ are open until June 30, 2026, based on secondary coverage stating program details; Banks, brokers, insurers, trustees and technology partners are given several months to submit proposals.
