Partner Heidi Chui Invited to Author Exclusive Hong Kong Chapter on AI Regulation for Asia Business Law Journal

Against the backdrop of rapid AI adoption across industries, the article explores Hong Kong’s evolving approach to AI regulation, which remains fragmented and sector-specific. Different authorities – including the Securities and Futures Commission (SFC), the Hong Kong Monetary Authority (HKMA), and the Office of the Privacy Commissioner for Personal Data (PCPD) – each impose distinct regulatory obligations, creating a complex compliance environment for businesses operating across multiple sectors.

The chapter highlights high-risk AI applications in finance, healthcare, and legal services, where the potential for bias, data misuse, and consumer harm is particularly acute. Drawing from local regulatory guidance such as the SFC’s Circular on Generative AI and the HKMA’s High-Level Principles on AI, the authors provide a clear and practical framework for risk assessment, oversight, and compliance.

The article also introduces governance tools such as the “three lines of defence” model to help businesses align innovation with accountability, and examines data privacy issues, including the use of AI in processing sensitive personal data and the growing regulatory concern around unauthorised data scraping.

In the absence of a unified AI framework, the authors encourage businesses to take a proactive and tailored approach: identifying high-risk applications, engaging with sectoral regulators, and building strong internal controls for responsible AI use.

Read the full article here: Asia Business Law Journal

Please contact our Partner Heidi Chui for any inquiries or further information.