Hong Kong is ramping up its efforts to harness artificial intelligence (AI) for a technological and industrial transformation, with one of its key initiatives — the Hong Kong AI Research and Development Institute (AIRDI) — expected to start operations as soon as next year.

Sun Dong, secretary for innovation, technology and industry, made the remarks at a news conference on Thursday.

He said the institute could serve as a catalyst to promote business participation in AI development and facilitate the application of its findings.

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Sun’s comments came after the announcement by Financial Secretary Paul Chan Mo-po at Wednesday’s budget speech, in which Chan earmarked HK$1 billion ($128.6 million) to back the establishment of the institute.

The main functions of the institute are to facilitate research and development, transform research outcomes, and expand application scenarios, Sun said. He added that the Digital Policy Office of the Hong Kong Special Administrative Region government will outline the detailed objectives of the institute, and clarify how the HK$1 billion will be spent, with hopes of securing funding approval from the Legislative Council’s Finance Committee by midyear.

With the institute as a platform, Sun said one of the government’s ambitions is to roll out AI applications across various sectors, including finance, healthcare, law, and governance, ensuring that the needs of residents are met.

Drawing inspiration from the Chinese mainland, where businesses often spearhead AI research and proactively explore application scenarios, Sun said he believes this push for AI development in Hong Kong could unlock more opportunities for local enterprises.

“Hong Kong’s AI development is not starting from scratch,” he said.

On Tuesday, the city unveiled its first homegrown AI large language model, HKGAI V1. The model is spearheaded by the Hong Kong Generative AI Research and Development Center, which was established in October 2023 with backing from the government’s major research initiative, InnoHK. Sun confirmed that the functions of this AI center will be integrated into the AIRDI.

He also said that guidelines for generative AI applications, drafted by InnoHK, have been finalized and will soon be made public. These guidelines aim to set the rules for safety and accountability in AI development, offering a road map for service providers and users.

In addition to the AIRDI, Chan has rolled out a suite of initiatives designed to turbocharge the city’s AI landscape. Among them is the establishment of a dedicated “technology enterprises channel” (TECH) at the Hong Kong Exchanges and Clearing (HKEX), aimed at assisting specialist technology and biotechnology firms — especially those already listed on the mainland — in raising funds and scaling up their businesses.

At Thursday’s news conference, Christopher Hui Ching-yu, secretary for financial services and the Treasury, said the new channel is an upgrade to the existing mechanism for preliminary discussions between the HKEX and companies prior to their listing applications.

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Hui said that TECH will provide tech companies with “one-on-one consultations” that could help them understand Hong Kong’s listing rules and regulations. With this support, enterprises can be better prepared for their applications, he added.

HKEX CEO Bonnie Chan Yi-ting said TECH can help ease these firms’ worries, and provide a reassuring pathway for them to list in Hong Kong.

Bonnie Chan said technology companies accounted for about 80 percent of total fundraising in the city’s stock market last year, reflecting their strong appeal to investors.

Contact the writer at irisli@chinadailyhk.com