Hong Kong finance sector on pace in AI deployment, with data availability, security and skills gap among concerns: survey

Data availability and cybersecurity represent major challenges to the use of artificial intelligence (AI) in financial services, according to more than 60 per cent of Hong Kong financial professionals in a joint survey by PwC and the Hong Kong Trade Development Council.

Hong Kong’s current pace of AI development in financial services is on par with other financial hubs, according to about 40 per cent of the respondents. But a majority also said a skills gap in the workforce and cybersecurity represent insufficiently addressed challenges, Raymund Chao, PwC Asia-Pacific and China chairman, said at the Asian Financial Forum on Wednesday.

“There is an urgent need for business reinvention – looking at business models, products and services and operations, understanding the impact as well as the opportunity of AI, and harnessing the power of AI to respond to a constantly evolving landscape,” he said.

AI has made inroads into several aspects of financial services, with virtual chatbots, fraud detection and biometric authentication being the most prominent application areas, according to the survey, conducted online in December with 86 senior executives based in Hong Kong.

AI will find use in areas such as algorithmic trading, automated customer service and more effective fraud detection, as well as more efficient claims processing, a majority of respondents said.

The city’s financial professionals expressed optimism about Hong Kong’s standing as a global financial hub well-positioned for AI adoption. More than 60 per cent indicated confidence in investor awareness, acceptance and access to capital for AI investment.