Hong Kong prepares AI guidelines for finance as global leaders call for Fair AI and decentralized solutions to counter Big AI monopolies.
Hong Kong is gearing up to regulate artificial intelligence (AI) in the financial sector with a comprehensive set of policies that will be unveiled at the highly anticipated Hong Kong FinTech Week, running from October 28 to November 1. The Hong Kong government aims to bolster AI adoption across various financial sectors, including traditional trading, investment banking, and the burgeoning cryptocurrency market.
The Financial Services and the Treasury Bureau (FSTB) is leading the charge by drafting a robust policy framework focused on the ethical and responsible use of AI within financial markets. This initiative is a critical step forward as Hong Kong strives to stay at the forefront of AI technologies, especially in light of global regulatory challenges. With ongoing tensions in the US-China tech conflict, which have restricted access to leading AI tools like OpenAI’s ChatGPT and Google’s Gemini in Hong Kong, the region is taking steps to develop homegrown AI capabilities.
A spokesperson from the FSTB confirmed that Hong Kong is closely reviewing global AI adoption models to ensure that the new guidelines are in line with best practices worldwide. These efforts will culminate in a formal policy statement later this year, outlining the government’s stance on AI in finance and the measures it will take to ensure the technology is used responsibly.
In parallel, the Hong Kong Monetary Authority (HKMA) has already issued key principles for the use of generative AI in consumer-facing applications. The principles emphasize governance, transparency, and rigorous data protection, particularly for customer-facing services like chatbots, personalized product development, and robo-advisors in sectors such as wealth management and insurance. Senior management and corporate boards have been explicitly tasked with accountability for any AI-driven decisions to ensure consumer data protection is prioritized.
The global AI landscape is rapidly evolving, and Hong Kong’s proactive approach mirrors growing concerns around Big AI monopolies. Leading tech companies, including Google, OpenAI, Microsoft, Meta, and Nvidia, have dominated the AI space for years, leveraging vast amounts of user data to develop powerful AI models. This centralization of AI power raises significant ethical concerns, particularly around the exploitation of user data.
The Case for Fair AI: A New Model for AI’s Future
As AI technology continues to reshape industries and economies, there is an increasing demand for Fair AI—a concept that aims to redistribute the economic benefits of AI more equitably. Advocates of Fair AI argue that users who contribute data, computational power, and content to AI systems should be fairly compensated, breaking away from the current system where Big AI players hoard data and profits.
Calanthia Mei, co-founder of Masa, argues that Fair AI is essential for curbing the risks posed by Big AI. The monopolization of user data by tech giants not only threatens privacy but also concentrates the economic benefits of AI advancements in the hands of a few. As AI technologies continue to displace jobs and transform industries, the importance of compensating users for their contributions will only grow.
One critical solution lies in blockchain technology, which offers decentralized networks that can track, permission, and even revoke access to user data, all while ensuring contributors are compensated through on-chain assets. This decentralized model could revolutionize the way AI is developed, creating a more open and competitive environment where both individuals and smaller enterprises can thrive.
VanEck’s recent report highlights the potential of decentralized AI, estimating that the market could grow to $10.2 billion by 2030. Blockchain-enabled solutions such as on-chain data markets, decentralized identity, and AI governance are already driving growth in the decentralized AI space, making it a pivotal factor in creating a fairer AI economy.
By decentralizing AI, contributors’ data can be used more effectively across applications, breaking down the silos of traditional AI models. This open approach not only fosters innovation but also ensures that AI developers have access to more comprehensive datasets, ultimately improving the quality and efficacy of AI applications.
Decentralized AI Society: Fighting Big AI Monopolies
In response to growing concerns about AI monopolization, several industry leaders have come together to form the Decentralized AI Society (DAIS), a non-profit organization dedicated to promoting decentralized AI solutions. Headed by Michael Casey, former Chief Content Officer of CoinDesk, DAIS aims to address four critical issues: securing capital for decentralized AI, shaping AI regulations, educating the public, and engineering new AI learning algorithms.
The formation of DAIS highlights the urgency of countering the dominance of companies like Google, OpenAI, Microsoft, and Apple, which control vast amounts of data and computing resources, and even influence regulatory decisions. DAIS is poised to be a key player in the fight for a more decentralized and fair AI ecosystem, championing transparency and equity in AI development.
Solidus AI Tech and SambaNova: Accelerating AI in the Web3 World
Solidus AI Tech and SambaNova Systems are teaming up to drive the next generation of AI innovation within the Web3 landscape. This partnership brings together SambaNova’s cutting-edge hardware and Solidus AI Tech’s expertise in AI to create the world’s fastest AI inference service. This collaboration will power Solidus AI Tech’s High-Performance Computing (HPC) Data Centre and AI Marketplace, which will soon offer advanced AI models and solutions for industries such as healthcare, finance, and entertainment.
SambaNova’s SN40L chip is a game-changer, providing the infrastructure needed to fine-tune models and conduct real-time AI inferencing at unprecedented speeds. As businesses increasingly look to AI to unlock new growth opportunities, the Solidus AI Tech Marketplace will democratize access to high-impact AI applications, enabling more organizations to benefit from cutting-edge AI technology.
Solidus AI Tech is set to open early registrations for its AI Marketplace, with the first 5,000 registrants receiving exclusive benefits. The launch of this marketplace represents a significant leap forward in AI accessibility and performance, further illustrating the transformative potential of AI in the Web3 era.
Conclusion: The Future of AI Lies in Fairness and Decentralization
As AI continues to evolve, the need for ethical frameworks, fair compensation, and decentralized solutions becomes increasingly clear. Hong Kong’s upcoming AI policies are a crucial step in ensuring responsible AI use in finance, but the global conversation must also address the broader challenges posed by Big AI monopolies. Through initiatives like Fair AI and the Decentralized AI Society, the world can begin to build a more equitable and innovative AI future, where the economic and technological benefits of AI are shared by all.
