Hong Kong’s Bold $128M AI Push: New Institute Set for 2025

Hong Kong’s Bold $128M AI Push: New Institute Set for 2025

Hong Kong is making a bold move to position itself as a global hub for artificial intelligence (AI). The government is set to launch the Hong Kong AI Research and Development Institute (AIRDI) in 2025, backed by a $128.6 million (HK$1 billion) investment. Officials say the institute will drive technological advancements, expand AI applications, and strengthen business participation in AI-driven solutions.

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Sun Dong, Secretary for Innovation, Technology, and Industry, confirmed the plans during a press conference on Thursday. He emphasized that AIRDI will act as a catalyst for AI research, enabling businesses to harness cutting-edge technology and integrate AI solutions across multiple industries, including finance, healthcare, law, and governance.

The announcement follows Financial Secretary Paul Chan Mo-po’s budget speech on Wednesday, according to China Daily, where he pledged HK$1 billion for the project. The government aims to secure funding approval from the Legislative Council’s Finance Committee by mid-2024.

AIRDI’s core mission is to bridge the gap between AI research and real-world applications. The institute will focus on fostering innovation, accelerating the development of AI models, and expanding their use in various sectors. Sun stated that the Digital Policy Office will soon provide a detailed breakdown of how the allocated funds will be spent.

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Officials believe that AI development in Hong Kong could unlock substantial economic opportunities. Inspired by China’s AI ecosystem, where private enterprises lead the charge in AI advancements, the Hong Kong government seeks to create a similar environment where businesses drive innovation.

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“Hong Kong’s AI development is not starting from scratch,” Sun reassured. The city has already made strides in AI research. Earlier this week, it introduced its first homegrown AI large language model, HKGAI V1. Developed by the Hong Kong Generative AI Research and Development Center, the model is a product of InnoHK, a government-backed research initiative. Sun confirmed that the functions of this AI center will be integrated into AIRDI.

In addition to launching the institute, the Hong Kong government has introduced a suite of initiatives to strengthen the AI ecosystem. One key move is the creation of a “technology enterprises channel” (TECH) at the Hong Kong Exchanges and Clearing (HKEX). This initiative will help specialized tech and biotech firms—particularly those already listed on the Chinese mainland—secure funding and scale their operations.

Christopher Hui Ching-yu, Secretary for Financial Services and the Treasury, highlighted TECH as a crucial upgrade to the city’s financial infrastructure. He noted that the new channel will streamline the listing process for tech firms by offering one-on-one consultations with HKEX. This will help companies navigate listing regulations and prepare strong applications.

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Bonnie Chan Yi-ting, CEO of HKEX, added that the initiative aims to reduce uncertainties for tech firms looking to list in Hong Kong. She emphasized that technology companies accounted for 80% of the city’s stock market fundraising last year, demonstrating the sector’s attractiveness to investors.

Meanwhile, Hong Kong is also finalizing guidelines for generative AI applications. These rules, drafted by InnoHK, will establish safety and accountability measures for AI development, ensuring that AI adoption remains ethical and responsible. The guidelines are expected to be released soon, offering a structured framework for AI service providers and users.

With the AI sector booming globally, Hong Kong’s $128 million investment in AIRDI signals a strong commitment to becoming a leader in AI research and development. The government hopes that by fostering innovation and providing financial support, local enterprises will thrive in an increasingly AI-driven world.