AI institute may be up and running next year

Cheng Wong and Jamie Liu

The new Hong Kong AI Research and Development Institute, backed by a substantial allocation of HK$1 billion from the government, will begin operations as early as next year, according to Secretary for Innovation, Technology and Industry Sun Dong.

At a news conference discussing the latest budget measures yesterday, Sun highlighted the emergence of a new landscape for AI development and predicted rapid advancements in the coming decades.

He emphasized the necessity for Hong Kong to bolster its foundational research capabilities through integrated resource management.

The budget earmarked HK$1 billion to establish the institute, which aims to propel innovative research and industrial applications of AI within the region.

Sun said it will not only prioritize fundamental research but also promote the application of AI across various sectors, including innovation and technology, finance, health care and government services. He said the institute is meant to lead in creating new business opportunities for industries in Hong Kong.

Regarding the timeline for the institute's operations, Sun hopes to secure funding from the Legislative Council by mid-year, enabling the institute to commence its functions as early as next year.

"This institute is not being created from scratch. Our Hong Kong Generative AI Research and Development Centre, part of InnoHK, has made significant strides in generative research and development intelligence over the past year and a half," he said.

Sun added that there are plans to further integrate the current InnoHK research center with the development of the new institute.

He also underscored the importance of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone as a key driver for high-quality development in the Greater Bay Area.

Sun affirmed the commitment of both the central and Hong Kong governments to this initiative, emphasizing the need for effective coordination between Hong Kong and the cooperation zone while accelerating infrastructure development.

Financial Secretary Paul Chan Mo-po also said that Hong Kong aims to attract more AI technology firms as part of a vision to develop AI into a core industry.

Chan said given the current geopolitical landscape, many AI companies view Hong Kong as a gateway to the mainland market, while numerous mainland firms seeking international expansion are also drawn to Hong Kong.

He highlighted that these companies can tap into Hong Kong's robust capital chain, which includes privately offered funds for investment, and benefit from expedited channels to go public on the Hong Kong stock exchange.

In addition to the financial advantages of an AI push, Chan said it will also lure talent, noting that many overseas Chinese who excel in AI are eager to advance their careers in Hong Kong.