TLDR: The Hong Kong Investment Corporation (HKIC) has partnered with the Beijing Academy of Artificial Intelligence (BAAI) to accelerate AI development in Hong Kong. This collaboration is seen as a strong alliance, leveraging BAAI’s expertise to bolster Hong Kong’s burgeoning AI ecosystem.
Hong Kong is making significant strides in its ambition to become a global artificial intelligence (AI) hub, underscored by a pivotal partnership between the Hong Kong Investment Corporation (HKIC) and the Beijing Academy of Artificial Intelligence (BAAI). This alliance is poised to inject substantial momentum into the city’s AI development landscape.
Clara Chan Ka-chai, Chief Executive of HKIC, lauded the collaboration, stating that the partnership is ‘proving to be a strong alliance, with BAAI showcasing immense talent, technology, and advantages in the AI ecosystem.’ This strategic move aligns with Hong Kong’s broader vision to transition towards a technology-driven economy, a goal articulated by Financial Secretary Paul Chan Mo-po.
The government has committed substantial resources to this technological transformation. The 2025 budget earmarked HK$10 billion for an innovation and technology industry-oriented fund, specifically designed to channel investments into future-oriented industries. Furthermore, HK$1 billion has been allocated to establish the Hong Kong AI Research and Development Institute. This institute, slated to open by the 2026-27 financial year, will focus on upstream AI research, midstream technology transformation, and downstream application expansion, with its initial funding covering five years of operational expenses, including staff recruitment.
Financial Secretary Paul Chan emphasized the strategic importance of AI, stating, ‘AI is at the core of developing new quality productive forces. We will leverage the ‘one country, two systems’ edge and our internationalised characteristics to develop Hong Kong into an international exchange and cooperation hub for the AI industry.’ He also highlighted the necessity for continuous innovation and institutional reform to unleash the city’s economic and innovative potential.
Complementing these initiatives, the AI Supercomputing Centre at Cyberport has already commenced operations and is projected to ramp up its computing power to an impressive 3,000 petaFLOPS by the end of 2025, capable of processing nearly 10 billion images per hour. The Hong Kong Microelectronics Research and Development Institute (HKMRDI) is also advancing third-generation semiconductor technology research, with two pilot production lines expected to begin operations in Yuen Long by 2026.
To ensure responsible AI adoption, the Digital Policy Office (DPO) launched the Ethical Artificial Intelligence Framework in July 2024, providing a voluntary guide for risk assessment, transparency, and accountability in AI projects. The Hong Kong Monetary Authority (HKMA) has also introduced a GenAI sandbox, offering banks a controlled environment to test AI innovations.
HKIC is actively fostering international collaboration by hosting events such as the first International Young Scientist Forum on AI, which will promote discussions on AI technology, open-source innovations, and RISC-V chip architecture. The corporation will also organize the International Conference on Embodied AI Robot, bringing together leading technology enterprises, academic institutions, and investors.
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Professor Wan Renjie of Hong Kong Baptist University noted the importance of these investments, stating, ‘It is necessary to allocate part of the budget to invest in AI, though the Hong Kong government cannot predict when it will yield returns. Once Hong Kong has nurtured an impressive, influential and independent AI enterprise, the return will be immeasurable.’ Data indicates that 41% of Hong Kong enterprises are currently adopting or planning to adopt AI, with 32% already applying AI across various functions like marketing and operations, signaling a robust local appetite for AI integration.
