Hong Kong's privacy watchdog, the Office of the Privacy Commissioner for Personal Data (PCPD), has recently released the city's first set of personal data protection guidelines tailored for businesses using generative artificial intelligence (AI) services (via South China Morning Post).
This initiative comes in response to the rapid adoption of AI technologies and aims to bolster personal data protection measures.
HONG KONG, CHINA - OCTOBER 16: General view of Hong Kong's cityscape is seen on October 16, 2022 in Hong Kong.Photo by Anthony Kwan/Getty Images
Hong Kong Implements New AI Safety Guidelines
The guidelines, issued by the PCPD, target companies utilizing generative AI solutions. These solutions have become increasingly prevalent since the launch of OpenAI's ChatGPT in late 2022. The framework offers comprehensive measures that businesses should adopt to ensure the protection of personal data.
As AI continues to integrate into various business operations, concerns about data privacy and security have grown. The PCPD's guidelines, published on Tuesday, June 11, are designed to mitigate these concerns by providing a clear framework for businesses.
According to Ada Chung Lai-ling, Hong Kong's Privacy Commissioner, these guidelines will help companies navigate the complexities of AI while ensuring compliance with local data protection regulations.
As SCMP reports, Hong Kong's proposed AI safety framework recommends a comprehensive approach to AI governance for businesses, emphasizing risk assessments to identify and address potential data privacy concerns, determining appropriate levels of human oversight, and minimizing the collection of personal data for AI training.
It also suggests the establishment of an internal AI governance committee, led by a C-level executive and reporting to the board, to oversee AI-related activities.
Notably, these guidelines are voluntary, reflecting the government's incremental approach to AI regulation, according to Amita Haylock, a partner at the law firm Mayer Brown in Hong Kong.
The PCPD's efforts are not entirely new. In 2021, the office published guidance on the ethical development and use of AI, emphasizing principles such as accountability, transparency, fairness, and security. The Hong Kong Monetary Authority has also issued high-level principles on AI.
Increasing AI Adoption in Hong Kong
AI adoption in Hong Kong workplaces has surged, with a report from Microsoft and LinkedIn revealing that 88% of knowledge workers in the city use generative AI tools, significantly higher than the global average of 75%.
Between August and February, the PCPD conducted compliance checks on 28 local organizations, finding that 21 of them used AI in their daily operations and 10 collected personal data with appropriate security measures.
Despite the framework's comprehensive nature, small and medium-sized enterprises (SMEs) might face challenges in fully complying due to limited resources. These businesses are increasingly adopting AI but may struggle to invest the necessary time and resources to meet best practices.
AI-related Crime
Earlier this year, a multinational firm headquartered in Hong Kong recently fell victim to an elaborate deepfake scam, resulting in a loss of HK$200 million (US$25.6 million).
Scammers used advanced deepfake technology to impersonate key company figures in a video conference call, tricking an employee into making unauthorized transfers.
