TLDR: Hong Kong Chief Executive John Lee’s 2025 Policy Address declares artificial intelligence a core industry, outlining a comprehensive strategy to become a global AI development hub. The plan includes a HK$3 billion Frontier Technology Research Support Scheme, a HK$1 billion Hong Kong AI Research and Development Institute, and the establishment of an AI Efficacy Enhancement Team to integrate AI across government services and industries. The strategy emphasizes strengthening infrastructure, promoting application-oriented approaches, and ensuring safety and risk management.
Hong Kong is embarking on an ambitious journey to cement its position as a global hub for artificial intelligence (AI) development, as outlined by Chief Executive John Lee in his 2025 Policy Address. The comprehensive strategy, guided by a dual approach of ‘strengthening infrastructure and promoting an application-oriented approach,’ aims for deep integration of AI across all sectors, focusing on both ‘industries for AI’ and ‘AI for industries’ while prioritizing safety and risk prevention.
Significant Financial Commitments and Institutional Development
To bolster this vision, the government has earmarked substantial funding. A HK$3 billion Frontier Technology Research Support Scheme will be launched to attract top-tier international researchers to lead fundamental AI research at universities. Additionally, HK$1 billion is allocated to establish the Hong Kong AI Research and Development Institute in 2026, which will facilitate upstream innovation and the midstream-to-downstream development of AI outcomes. The government-owned Hong Kong Investment Corporation Limited has already demonstrated its commitment by investing in various AI businesses, including those focused on large language models and AI drug development, providing crucial ‘patient capital’ to the burgeoning industry.
Nurturing Talent and Expanding Research Capabilities
Central to Hong Kong’s AI strategy is the intensive effort to cultivate local AI talent and attract leading experts from mainland China and overseas. The existing AIR@InnoHK research cluster has already drawn over a thousand specialists, and nearly a thousand AI companies have established a presence in the city’s innovation and technology parks, significantly enhancing its research and development capabilities.
Leveraging Data and Infrastructure
Hong Kong plans to capitalize on its unique ‘One Country, Two Systems’ framework to establish a secure mechanism for cross-boundary data flow from the mainland, specifically for scientific research purposes. This initiative 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.
Integrating AI Across Government and Business
The Policy Address stresses that AI development must be ‘steered by safety and driven by application.’ An AI Efficacy Enhancement Team, led by the Deputy Chief Secretary for Administration and including a private-sector representative, will spearhead the promotion of AI applications within government services. The new Digital Policy Office will deploy AI tools for data analysis, customer service, and document processing.
Several government departments are already developing specific AI solutions. For instance, AI is being used 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. In healthcare, AI will be applied to improve the accuracy of pathological analysis and patient care efficiency.
For the business sector, the Hong Kong Monetary Authority and Cyberport are expanding an AI Sandbox initiative to encourage adoption in financial institutions. Subsidies will also be provided to promote AI use in private construction projects. An inter-departmental working group, led by the Department of Justice, will review existing legislation to support the broader application of AI.
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This comprehensive strategy underscores Hong Kong’s commitment to leveraging AI as a key driver for economic growth, public sector efficiency, and overall innovation.
