Hong Kong’s financial regulators have broadened a regulatory sandbox for generative artificial intelligence, extending the programme beyond banking to include multiple segments of the financial industry as the city accelerates its push to become a hub for responsible AI innovation.

The initiative, known as GenAI Sandbox++, was launched jointly 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, the city’s technology incubator.

The framework builds on an earlier sandbox introduced in twenty twenty four that initially focused on banks, expanding its scope to cover securities and capital markets, asset and wealth management, insurance, pension services and stored-value facilities.

Regulators say the expanded programme will allow financial institutions to test and refine artificial intelligence applications in a controlled environment while receiving supervisory guidance and technical support.

Participants will also gain access to high-performance computing resources at Cyberport’s artificial intelligence supercomputing centre, enabling firms to develop and evaluate new AI tools before deploying them at scale.

The sandbox prioritises areas where authorities believe AI could deliver immediate benefits, including risk management, fraud detection and improvements to customer experience.

Potential applications range from automated insurance underwriting and claims processing to tools that verify suitability requirements when distributing investment products and intelligent customer-service systems.

The expansion reflects a coordinated effort by Hong Kong’s financial watchdogs to encourage innovation while maintaining robust oversight of emerging technologies.

By bringing multiple regulators into a single framework, the initiative aims to foster collaboration among banks, brokers, insurers, pension trustees and financial technology companies.

Officials say the programme forms part of Hong Kong’s broader strategy to strengthen its position as a global financial centre while supporting responsible adoption of advanced technologies.

By enabling institutions to experiment with artificial intelligence under regulatory supervision, authorities hope to accelerate digital innovation without compromising market stability or consumer protection.

Applications for the expanded sandbox are open to financial institutions and technology partners, with regulators encouraging firms across the financial ecosystem to participate in developing new artificial intelligence solutions for the sector.