Fewer HK companies are prepared for AI use

Mike Chu

Only 9 percent of Hong Kong enterprises are fully prepared to deploy and utilize artificial intelligence technologies, significantly lower than the 25 percent last year, a survey found.

Cisco, a global leader in networking and security, conducted a double-blind survey that involved interviewing 3,660 senior business leaders responsible for the integration and preparation for the use of AI from companies with more than 500 employees in 14 different Asia-Pacific economies.

Among the 200 interviewees from Hong Kong, 97 percent believe deploying AI is an urgent need for corporations in the past year, while 48 percent of corporations have already allocated 10 to 30 percent of their IT budget to deploying AI.

Despite the high awareness of implementing AI, 60 percent of corporations reflect that they see little to no gains in augmenting, assisting or automating their current processes and operations.

In addition, 63 percent of companies believe they will face negative impacts if they do not get their AI strategies right.

Some 14 percent plan to put more than 40 percent of their IT budget into AI in the next four to five years, jumping from 3 percent of respondents last year, indicating that the unexpectedly low returns and the fear of lagging behind had prompted them to accelerate their AI investment projects.

The survey also highlighted the importance of talent in developing AI from companies across the Asia Pacific. Attracting global talent has been a top priority of the SAR with policies like Top Talent Pass Scheme and Quality Migrant Admission Scheme expanding their scope.

However, low AI penetration also came as a red flag to the city's attempt at new industrialization and development into an international IT center with increased government investment.