Opening Remarks at the Generative AI and InvestLM Seminar co-hosted by the HKMA and HKUST
Speeches
19 Dec 2024
Opening Remarks at the Generative AI and InvestLM Seminar co-hosted by the HKMA and HKUST
Carmen Chu, Executive Director (Banking Supervision), Hong Kong Monetary Authority
- Good afternoon, everyone. It is my great pleasure to welcome you all to this seminar on Generative AI (Gen A.I.), co-hosted by the HKMA and HKUST. I would like to extend my heartfelt gratitude to Professor Tam [Kar-yan, Vice President for Administration and Business and Chair Professor of Information Systems, Business Statistics and Operations Management, HKUST] and Dr Samuel Kwan [Director of HKUST’s Information Technology Services Center] for your support and sharing with us your pioneer work.
- As we gather here, we are witnessing the rapid integration of GenA.I. into daily life and organisational operations. This transformative technology is no longer merely a concept of the future; it is reshaping how we work and interact with clients. The potential of GenA.I. to enhance efficiency, improve decision-making and drive customer engagement is huge and real.
- As we explore these advancements, it is crucial to recognise the remarkable variety of GenA.I. offerings available today. Some are open-source, while others are proprietary; some are general-purpose, and others are specifically tailored for niche applications.
- Among these, I am particularly excited about InvestLM, developed by HKUST, which is Hong Kong's first open-source Large Language Model specifically designed for finance and investment—by Hong Kong, for Hong Kong, reinforcing our status as an international financial centre as well as innovation and technology hub.
- The launch of the InvestLM platform represents a significant step forward, as it makes GenA.I. technologies more accessible to the local financial services industry, particularly small-to-medium sized financial institutions that may face challenges about investment costs and implementation issues in their adoption of GenA.I.. The open-source nature of InvestLM also enables banks with the necessary expertise to build upon or fine-tune the model to meet their specific needs.
- InvestLM is a home-grown Large Language Model, or “LLM” in short. Alternatively, “LLM” can also represent three key pillars that guide our approach to integrating technology into banking:
- The first “L” is for Learn:
- In the fast-evolving landscape of technology, continuous learning is paramount. I encourage you to be curious and embrace educational opportunities, such as workshops and seminars like this one, to keep abreast of emerging technologies, their potential, and best practices.
- By fostering a culture of learning within your institutions, you can empower the teams to innovate and adapt effectively. This commitment to learning is more than just keeping pace; it is about leading the charge. As the technology landscape evolves, those who invest in knowledge will be the ones who can shape the future.
- The second “L” is for Leverage:
- Knowledge must translate into action. I urge you to leverage technology and explore how it can benefit banks as well as customers. The HKMA has recently launched the GenA.I. Sandbox to promote adoption by providing a safe environment for banks to experiment.
- Within this sandbox, banks may partner with technology companies to test new ideas that leverage the latest A.I. technologies, refine innovative strategies and obtain early supervisory feedback. While the first cohort of participants has just been selected and will be announced later today, applications for the second cohort will open early next year, and the InvestLM model will also be made available in the next cohort.
- Lastly, “M” stands for Mature:
- It is essential to seek maturity in our approaches to technology adoption. As we integrate novel technologies like GenA.I. into different operations, each bank should develop robust frameworks for governance, risk management and security considerations. This maturity will enable your institutions to navigate the complexities, ensuring that you align your innovations with your commitment to customer trust.
- To foster this maturity, we encourage banks to explore solutions like InvestLM, gain hands-on experience and understand the intricacies of GenA.I.. In addition to providing supervisory feedback, the HKMA is committed to collaborate closely with HKUST and the industry to ensure the banking-specific adoption of InvestLM continues to mature, thereby positioning it for future growth and innovation.
- As we look ahead, it is through a combination of learning, leveraging and maturing that banks may position at the forefront of technological evolution. Embrace the opportunities presented by GenA.I. and do not shy away from the challenges.
- I do not want to take up too much of your time, as I am just as eager as you to hear from Professor Tam and Dr Samuel on their detailed insights into GenA.I.. I hope you all find this seminar insightful and that both InvestLM and the other concept of “LLM” (Learn, Leverage, Mature) to be beneficial in your Fintech journeys. Thank you.
