(Policy Address 2025) HK earmarks $3B for AI research and talent recruitment

Chief Executive John Lee declared artificial intelligence a core industry for Hong Kong’s future, outlining an ambitious strategy to transform the city into a global AI development hub. 

The plan is guided by a dual approach of "strengthening infrastructure and promoting an application-oriented approach" to deeply integrate AI across all sectors.

"We will promote the development of AI+ and facilitate an extensive and deep integration of AI across sectors," Lee said, emphasizing a focus on achieving "industries for AI" and "AI for industries" alongside strong safety risk prevention.

Bolstering Talent and Core Research

The government is intensifying efforts to nurture local AI talent and attract experts from mainland China and overseas.

This initiative is supported by the AIR@InnoHK research cluster, which has already pooled over a thousand experts. Nearly a thousand AI companies have also gathered in the city’s innovation and technology parks, enhancing its research and development capabilities.

Substantial funding is being deployed to fuel this growth. A HK$3 billion Frontier Technology Research Support Scheme will help universities attract top-tier international researchers to spearhead basic research.

Furthermore, the government has earmarked HK$1 billion to establish the Hong Kong AI Research and Development Institute in 2026, aimed at facilitating upstream innovation and midstream-to-downstream development of AI outcomes.

Mobilizing Capital and Data for Growth

The government-owned Hong Kong Investment Corporation Limited has already invested in several AI businesses, including those working on large language models and AI drug development, and will continue to provide "patient capital" for the industry.

To strengthen its data advantages, Hong Kong will capitalize on its unique status under "One Country, Two Systems" to promote a secure mechanism for cross-boundary data flow from the mainland for scientific research. 

This effort is complemented by significant infrastructure investments, including Cyberport's AI Supercomputing Centre, a government AI Subsidy Scheme, and a planned 10-hectare data facility cluster at Sandy Ridge.

Expanding Government and Business Applications

The government stresses that AI development must be "steered by safety and driven by application." An AI Efficacy Enhancement Team will lead the promotion of AI applications within government services. 

The new Digital Policy Office will roll out AI tools for data analysis, customer service and document processing.

Various departments are developing specific AI solutions. These include using AI for non-emergency police reports, expediting transport license approvals, enhancing real-time traffic management and providing an AI assistant for the "iAM Smart" platform to offer personalized services and funding recommendations for businesses. 

AI will also be applied in healthcare to improve the accuracy of pathological analysis and patient care efficiency.

For business, the Hong Kong Monetary Authority and Cyberport are expanding an AI Sandbox initiative to promote adoption in financial institutions. 

Subsidies will also be offered to encourage AI use in private construction projects. An inter-departmental working group led by the Department of Justice will review the legislation needed to support wider AI applications.

(Ayra Wang)