Answer ... (a) Healthcare
As of September 2023, there were 22 AI healthcare startups in Hong Kong. Businesses in the healthcare industry are increasingly reliant on AI to help manage data, in particular patients’ data. In Hong Kong, the Electronic Health Record Sharing System (eHRSS) stores and shares patients’ medical records among private and public healthcare providers. In addition to the Privacy (Data) Protection Ordinance (PDPO), the eHRSS Ordinance was promulgated to:
- regulate the relationship between data users and data subjects in a clinical setting; and
- address the collection, sharing, use and protection of patients’ health records.
Telemedicine is also growing in Hong Kong. Certain aspects of telemedicine feature the use of AI – for example, reviewing imaging scans. The Medical Council of Hong Kong has issued the Ethical Guidelines on Practice of Telemedicine, which state that only medical professionals registered in Hong Kong under the Medical Registration Ordinance can provide medical advice, which effectively prohibits the provision of medical advice generated by AI without supervision by qualified medical practitioners.
(b) Security and defence
AI has been used by law enforcement in Hong Kong for a number of years. For example, the Hong Kong police use different AI systems (eg, facial recognition) to help with law enforcement – such as by monitoring illegal parking through licence plate recognition.
The major concern arising from the use of AI by law enforcement is the mass mining of personal data – in particular, facial images and other biometric data. The Hong Kong government declared that data subjects should be granted the right to opt out of any decision made against them based solely on information processed by AI, including ‘profiling’, which is targeted at the detection of certain traits or characteristics.
Use of AI by law enforcement should also comply with the existing laws and regulations on law enforcement. For example, the Interception of Communications and Surveillance Ordinance requires law enforcement agencies to strike a balance between the right to privacy and law enforcement needs in interceptions or covert surveillance. Any use of AI for either of these must comply with the requirements set out in the Interception of Communications and Surveillance Ordinance.
(c) Autonomous vehicles
Autonomous vehicles are still at an early stage in Hong Kong and are not seen on the roads. Generally, vehicles that do not comply with the technical standards in terms of design, construction and operation for vehicle registration and licensing requirements under the current regulatory framework cannot be driven on the road. Autonomous vehicles are currently legally not roadworthy, partly due to the risks posed by the use of unapproved auto-lane changing and auto-steering technology used by autonomous vehicles.
That said, the Transport Department has issued movement permits under the Road Traffic Ordinance and also issued the Guidance Note on the Trials of Autonomous Vehicles in 2020 to enable trials of autonomous vehicles in Hong Kong. In the Hong Kong Smart City Blueprint 2.0, issued in December 2020, one of the ‘smart mobility initiatives’ is to promote and facilitate the industry development and technological advancement of autonomous vehicles, with the objective of expediting the trial and use of autonomous vehicles in the city. However, it remains to be seen how the regulatory regime will keep up with autonomous vehicles in the future – particularly regarding:
- design and specification;
- registration and licensing requirements; and
- insurance policies.
On 2 December 2022, the Road Traffic (Amendment) (Autonomous Vehicles) Bill 2022 was gazetted to develop a new regulatory framework to facilitate the wider trial and use of autonomous vehicles in Hong Kong, primarily focusing on licensing regulations.
(d) Manufacturing
There is no specific legislation in Hong Kong that addresses manufacturing using AI. While goods sold in Hong Kong are generally governed by the Sale of Goods Ordinance and the Consumer Goods Safety Ordinance, depending on the type and nature of the goods in question, other legislation may also be applicable. For example, the Toys and Children’s Products Safety Ordinance specifically regulates the safety of toys and goods for children.
Manufacturers in Hong Kong are also bound by the Factories and Industrial Undertaking Ordinance, which governs the health and safety of personnel in an industrial setting. The obligations imposed on manufacturers include, among others:
- proper provision and maintenance of plant and work systems; and
- provision of all necessary instructions, training and supervision to ensure health and safety.
These obligations also apply to those using AI in the manufacturing processes, which means that they need to provide proper training and instruction to staff on issues such as:
- mechanical errors arising from the use of AI; and
- the dangers that malfunctioning AI may pose.
Manufacturers must also monitor AI-powered manufacturing processes and inspect the end product to ensure they meet statutory standards.
(e) Agriculture
Agriculture on a commercial scale is basically non-existent in Hong Kong. There is no regulatory intervention from the Hong Kong government into the use of AI in agriculture in Hong Kong.
That said, the Hong Kong government is currently building an agricultural park covering over 7.5 hectares of land. It remains to be seen whether and how the potentials of agritech (a term coined for ‘agricultural technology’) will be explored after the completion of the agricultural park.
(f) Professional services
The banking and financial industries are the biggest users of AI in Hong Kong. AI is widely used in their daily operations and delivery of services to clients. AI is also applied in their risk management procedures, such as detecting anti-money laundering activities and due diligence on fund transfers.
The city’s de facto central bank, the Hong Kong Monetary Authority (HKMA), has issued circulars to provide guidance on the use of AI in the banking and financial industries. The HKMA has warned that over-reliance on AI may compromise proper validation expected from financial institutions. Financial institutions are reminded to ensure that their obligation to properly assess the financial capabilities of clients is not compromised by the use of AI; nor does the use of AI mitigate the financial institutions’ liabilities from the consequences of any conduct.
(g) Public sector
As set out in questions 10.2 and 12.1, the Hong Kong government is pushing to incorporate technology (AI being a prominent part) into public services according to the Smart City Blueprint for Hong Kong 2.0 initiative. One of the key highlights is to streamline government services by developing a hub that allows citizens to submit and process their building plans and apply for licences online under the Be the Smart Regulator Programme and the Streamlining of Government Services Programme respectively.
During the COVID-19 pandemic, the Hong Kong government launched the StayHomeSafe and LeaveHomeSafe mobile apps, to ensure that members of the public complied with pandemic measures and laws by using big data analytics and AI technology. Members of the public raised concerns about the mass mining of personal data; but the Office of the Privacy Commissioner for Personal Data gave assurances that a balance had been struck between privacy rights of patients and public health, and that these applications were in compliance with the PDPO.