Hong Kong is entering an exciting new era of technological advancement, positioning itself as a pivotal hub for artificial intelligence (AI) and big data. Sectors such as finance, healthcare and logistics are experiencing remarkable growth and are driven by innovation, investment and a supportive regulatory environment.

A key driver of this transformation is the Government’s proactive approach to fostering innovation and technology. In his Policy Address last month, Chief Executive John Lee announced a $10 billion I&T Industry-Oriented Fund to channel market capital into strategic industries and fields, including AI and robotics. This fund is set to attract tech firms and support local start-ups, creating a thriving ecosystem for collaboration and growth.

Financial Secretary Paul Chan recently announced that more than 10 companies, over half leaders in AI and big data, will establish a presence in Hong Kong. Since the Government launched the Office for Attracting Strategic Enterprises (OASES) in 2022, around 100 innovation and technology firms have set up or expanded operations in the city – this represents over HK$50 billion in investment and the creation of 15,000 jobs.

Given its strategic location and robust infrastructure, Hong Kong serves as a critical gateway for businesses seeking to leverage local expertise while navigating Mainland markets. Under the “One Country, Two Systems” framework, the city provides a stable and inviting environment for foreign investors – an essential advantage for AI and big data companies looking to penetrate China’s vast market.

With solid economic and trade ties to Southeast Asia, Hong Kong is a crucial link to these nations, which are also embracing digital transformation by adopting AI and big data technologies. Mainland companies can refine their AI expertise in Hong Kong and tap into ASEAN markets, leveraging the city as a “living lab.”

A diverse talent pool and robust research and development practices are critical to establishing Hong Kong as an AI hub, with its world-class universities at the forefront of AI and data science research.

The Chief Executive also announced the allocation of a further $1.5 billion in funding to the Research Matching Grant Scheme, which will attract more organizations to support R&D, fostering a vibrant culture of innovation and ensuring our competitiveness in the global tech landscape.

With its dynamic business environment and a steady influx of companies and talent, bolstered by new policies, Hong Kong is well-positioned to become a leader in AI and big data. By harnessing these developments, Hong Kong can drive progress in innovation and technology across the region and the world.

Patrick Yeung
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