Artificial Intelligence in Banking : The Changing Landscape in Compliance and Supervision

The first part of the report assesses the current status of AI adoption in the Hong Kong banking industry based on an industry-wide survey conducted by the HKMA, and the findings indicate that banks in Hong Kong have adopted AI in all key functional areas. Over 80% of participating banks view AI adoption as a way of improving efficiency and strengthening risk management. Banks are also optimistic about the prospects of using AI, with some 80% of survey respondents planning to increase investment in AI over the next 5 years. The second part of the report provides useful insights about the risk management framework for banks adopting AI, the overarching principles guiding the supervision of AI adoption in banking and the development of AI-aided compliance and supervision (Regtech and Suptech)