Hong Kong Policy Address: New Legislation Planned to Combat AI-Driven Financial Fraud and Curb Generative AI Risks

Deep News
Yesterday

Hong Kong's Chief Executive, John Lee, delivered his policy address today, outlining a comprehensive framework for artificial intelligence and innovation. The administration, under the coordination of the Chief Secretary for Administration, will spearhead AI risk governance efforts to achieve "technology for good, security and controllability."

The Law Reform Commission has been tasked with reviewing existing statutes to examine potential legislation targeting offenses involving AI-generated pornographic content and online scams. Concurrently, the Financial Services and the Treasury Bureau will launch a public consultation within the year to refine the legal framework and combat financial fraud that exploits generative content.

Beyond regulatory measures, the government will intensify efforts to promote AI adoption across key sectors, including finance, healthcare, legal services, and construction. The "Digital Transformation Support Pilot Programme" will be optimized, and the Productivity Council will expand its platform capabilities to integrate advisory services. A special fund incorporating AI elements will be established to support small and medium-sized enterprises in their mechanical upgrade and transformation efforts.

Looking ahead, Mr. Lee announced that the Hong Kong AI Research Institute will release intelligent safety management guidelines applicable to airports next year. The Labour and Welfare Bureau will analyze AI's impact on the labor market in its manpower projection report and formulate corresponding skills training initiatives.

The government is also studying the issue of legal liability when AI products cause accidents or damage, exploring management through codes of practice or specific regulations. In education, the Bureau will support schools in teaching students the proper use of social media and cultivating correct values. The Department of Justice will lead a working group to coordinate responses.

The Innovation, Technology and Industry Bureau will mandate compliance with guidelines issued by the Digital Policy Office in procurement processes, including security and ethical compliance declarations. The Digital Policy Office will liaise with industry organizations to develop an AI ethics and self-regulation framework.

Additionally, the government is launching an Innovation and Technology Industry Guidance Fund and reserving an extra HK$1 billion to optimize the "Innovation and Technology Venture Fund" scheme. The Hong Kong Science and Technology Parks Corporation will study the establishment of a "Hong Kong Innovation and Technology Application Scenario Promotion Centre" to accelerate the deployment of technology solutions in practical settings.

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