Hong Kong Securities Regulatory Commission Wong Tin Woo: In the first half of the year, profits of all Hong Kong brokers' profits rose by more than 50% year on year, AI was an important driving force

The Zhitong Finance App learned that on October 30, while attending the 47th Anniversary Financial Innovation Forum of the Hong Kong Securities Association, Chairman of the Hong Kong Securities Regulatory Commission, Dr. Huang Tianyou, said that the Hong Kong securities market performed quite well this year. In the first half of the year, the profits of all brokerage firms increased by more than 50% year on year. Among them, the profits of Class B and Class C licensed brokerage firms increased by 75%. This reflects the dynamism of the Hong Kong market and shows that brokerage firms of all sizes are looking for new growth drivers. Artificial intelligence is undoubtedly one of the most important driving forces.

Huang Tianyou believes that what the financial industry really needs is not just artificial intelligence, but intelligent intelligence, or “accountability intelligence.” AI can help people make judgments, but it cannot replace people in taking responsibility; functions can be delegated, and responsibilities cannot be outsourced.

He added that in order to actually achieve “accountability intelligence,” there are three key points. First, it must be “visible.” The board of directors and senior management must first clearly understand where the organization uses AI, what decisions AI is making, and what risks it may pose. AI must not only be an information technology (IT) sector project; it needs to be incorporated into an organization's overall risk management and governance framework.

Second, you need to “manage it.” The more capable AI is, the more important human supervision becomes. Significant decisions, particularly those involving customer interests, investment decisions, risk taking, or compliance responsibilities, must retain real and effective human oversight. Management cannot hand over responsibility to machines because “it was decided by AI.”

Third, you need to “ask and be able to ask.” Not all employees need to be AI experts, but they must at least have the ability to understand how AI affects their work, be able to question the output of AI, and know when they can't rely on AI alone. Equally important, management should be able to explain and account to the board, customers, and even regulators: Why use AI? How to manage risk? If something goes wrong, who is responsible?

Huang Tianyou emphasized, “Good AI governance is not the opposite of innovation. On the contrary, the more clear governance and accountability we have, the better equipped we are to innovate boldly. Good governance allows innovation to run more steadily and go further. Only when responsibilities are clear and risks are manageable will customers be confident, the market will accept it, and investment in technology will have a chance to truly transform into the competitiveness of the enterprise.”

“If Hong Kong wants to establish an internationally leading fintech ecosystem, we must be brave in innovation, but we must also continue to maintain the most important asset in the Hong Kong financial market, which is trust.”