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Hong Kong Ai Scene
2025-04-24
Summary
Hong Kong's artificial intelligence (AI) scene is rapidly transforming into a significant hub for innovation and development, driven by substantial government investments and strategic partnerships between local and international research institutions. The Hong Kong Special Administrative Region (HKSAR) Government has committed to fostering a robust AI ecosystem through initiatives such as the InnoHK research clusters and the HK$3 billion AI Subsidy Scheme. These efforts aim to position Hong Kong as a global leader in AI research and development by attracting world-class universities and research institutes to collaborate with local institutions, establishing the city as a pivotal center for technological advancement
[1][2].
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The city's strategic location as a financial and commercial hub in Asia further bolsters its potential to lead in AI development. Hong Kong's AI industry is supported by organizations like the Artificial Intelligence Association of Hong Kong (AIHK) and the Hong Kong Generative AI R&D Center (HKGAI), which promote AI adoption and research across various sectors. Despite facing challenges such as a shortage of technical talent, the city's strong legal framework and government support provide a conducive environment for AI innovation and collaboration, particularly with Mainland China
[3][4].
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Hong Kong's AI applications span diverse sectors, including healthcare, logistics, and financial services, where AI technologies enhance operational efficiencies and drive innovation. The city's smart city initiatives highlight AI's role in urban development and industry transformation, ensuring responsible deployment and ethical practices. However, the rapid adoption of AI also raises concerns about data privacy and ethical implications, prompting the Hong Kong government to implement frameworks that balance innovation with precaution
[5][6].
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International collaborations play a crucial role in Hong Kong's AI scene, with partnerships extending to institutions like The University of Queensland and the University of Oxford. These alliances emphasize research in areas such as environmental sustainability, healthcare, and personalized medicine, reinforcing Hong Kong's position as a strategic bridge for global AI advancements. As the city continues to advance its AI capabilities, it aims to drive significant economic and social impact, securing its status as a key player in the global AI landscape
[7][8].
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Overview
Hong Kong's artificial intelligence (AI) scene is rapidly evolving, fueled by significant government investment and a burgeoning collaboration between local and international research institutions. The Hong Kong Special Administrative Region (HKSAR) Government has initiated substantial investments in research and development, even amidst challenging economic conditions, to foster a robust AI ecosystem. This includes the funding for 1,600 new Postgraduate Research places and the establishment of InnoHK research clusters—Health@InnoHK and AIR@InnoHK. These initiatives aim to attract world-leading universities and research institutes to collaborate with local universities and set up 28 research laboratories, thereby positioning Hong Kong as a global hub for innovation and technology development
[1].
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The ENSURE joint center in Hong Kong is a notable initiative that focuses on tackling emerging issues related to environmental changes and human health. This center forms a tripartite partnership in environmental sustainability with The University of Queensland, alongside existing collaborations with the Chinese University of Hong Kong and Oxford University. These partnerships emphasize areas such as neuroscience, personalized medicine, and public health, including disaster response and air pollution research
[2].
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Additionally, the city is witnessing a transformative approach in industries such as logistics, where traditional AI and generative AI are being integrated with operations research to enhance routing and supply chain processes. This blend of technologies is particularly promising for customer-centric business approaches in logistics, as companies explore new AI-driven use cases across various workflow processes
[3][4].
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Development of AI in Hong Kong
The development of artificial intelligence (AI) in Hong Kong has been marked by rapid growth and strategic support from both the government and private sectors. Hong Kong's highly developed technology infrastructure and strong government backing have played a crucial role in positioning the city as a burgeoning hub for AI innovation
[5][6]. The strategic location of Hong Kong as a financial and commercial center in Asia further supports its potential to become a leader in AI development
. The strategic location of Hong Kong as a financial and commercial center in Asia further supports its potential to become a leader in AI development
[7].
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One of the key drivers of AI development in Hong Kong is the government's commitment to fostering an AI-friendly ecosystem. This is exemplified by the introduction of initiatives such as the HK$3 billion AI Subsidy Scheme, which aims to support universities, R&D institutes, and enterprises in utilizing the computing capabilities of Cyberport's AI Supercomputing Centre
[6][8]. Additionally, the HK$10 billion Research, Academic and Industry Sectors One-plus Scheme (RAISe+ Scheme) encourages collaboration between industry, academia, and research sectors, thus facilitating the transformation of R&D outcomes into viable AI startups
. Additionally, the HK$10 billion Research, Academic and Industry Sectors One-plus Scheme (RAISe+ Scheme) encourages collaboration between industry, academia, and research sectors, thus facilitating the transformation of R&D outcomes into viable AI startups
[6].
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Moreover, various organizations, such as the Artificial Intelligence Association of Hong Kong (AIHK), are actively promoting and advancing AI development across different sectors. AIHK serves as an independent platform aimed at fostering AI adoption, commercialization, and use cases within businesses and institutions across Hong Kong
[9]. The city's AI industry is further supported by initiatives like the HKPC New Industrialisation, which has conducted studies to identify the needs, opportunities, and challenges faced by the AI sector
. The city's AI industry is further supported by initiatives like the HKPC New Industrialisation, which has conducted studies to identify the needs, opportunities, and challenges faced by the AI sector
[10].
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Despite these advancements, the AI industry in Hong Kong faces challenges such as a shortage of technical talent, with nearly half of AI-related enterprises reporting difficulties in recruitment
[10]. Nevertheless, the city's robust legal system, simple tax regime, and strong intellectual property rights protection provide a conducive environment for AI and robotics trade, particularly with Mainland China
. Nevertheless, the city's robust legal system, simple tax regime, and strong intellectual property rights protection provide a conducive environment for AI and robotics trade, particularly with Mainland China
[6].
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Key Organizations and Institutions
Hong Kong has emerged as a significant hub for artificial intelligence (AI) research and development, with various organizations and institutions playing pivotal roles in its advancement. A notable entity is the Hong Kong Generative AI R&D Center (HKGAI), founded in October 2023 under the InnoHK initiative. Led by the Hong Kong University of Science and Technology (HKUST), HKGAI collaborates with prominent regional universities, including The University of Hong Kong, The Chinese University of Hong Kong, City University of Hong Kong, The Hong Kong Polytechnic University, and the National University of Singapore, focusing on cutting-edge generative AI research
[11].
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Another significant contributor is the Hong Kong Productivity Council (HKPC), which has been actively involved in promoting AI industrialization in the city. In collaboration with the Hong Kong Institute of Economics and Business Strategy (HIEBS) and the University of Hong Kong's Business School, HKPC conducted a comprehensive study in mid-2023 to identify the needs, opportunities, and challenges faced by AI enterprises in Hong Kong. The study revealed a strong inclination among local enterprises to further develop their AI capabilities, with particular emphasis on addressing challenges such as insufficient high-performance computing power and difficulties in recruiting technical talent
[10].
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The Hong Kong Special Administrative Region (HKSAR) Government has also made significant investments in AI research. Noteworthy initiatives include the establishment of InnoHK research clusters, such as Health@InnoHK and AIR@InnoHK, which aim to attract world-leading universities and research institutes to collaborate with local institutions
[1]. Moreover, the government is set to establish a "Digital Policy Office" to enhance high-performance computing infrastructure, essential for AI development
. Moreover, the government is set to establish a "Digital Policy Office" to enhance high-performance computing infrastructure, essential for AI development
[10].
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Furthermore, the city's educational institutions play a crucial role in the AI ecosystem. The Hong Kong Polytechnic University and other leading universities contribute to AI advancements through extensive research and collaborations
[12]. These institutions not only enhance Hong Kong's global influence in AI research and applications but also help in training a workforce equipped with the necessary skills to thrive in the evolving digital economy
. These institutions not only enhance Hong Kong's global influence in AI research and applications but also help in training a workforce equipped with the necessary skills to thrive in the evolving digital economy
[11].
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AI Applications in Hong Kong
The artificial intelligence (AI) landscape in Hong Kong is rapidly evolving, with various sectors adopting AI technologies to enhance efficiency and innovation. The city is positioning itself as a hub for AI development, leveraging its financial and commercial strengths to foster an environment conducive to technological advancements
[7].
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Healthcare
The healthcare industry in Hong Kong is also witnessing significant AI integration. The use of AI in healthcare aims to disrupt traditional models, offering more equitable and efficient services
[13]. Events like the Asia Summit on Global Health (ASGH) and the Hong Kong International Medical and Healthcare Fair facilitate global partnerships, driving innovation and investment in health-tech
. Events like the Asia Summit on Global Health (ASGH) and the Hong Kong International Medical and Healthcare Fair facilitate global partnerships, driving innovation and investment in health-tech
[13].
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Logistics
Hong Kong's logistics industry is one of its economic pillars, with AI technologies playing a pivotal role in its evolution
[14]. The adoption of AI and big data analytics allows for enhanced operational efficiencies, addressing the challenges of rising B2B and B2C demands
. The adoption of AI and big data analytics allows for enhanced operational efficiencies, addressing the challenges of rising B2B and B2C demands
[4]. Initiatives are being developed to integrate AI more deeply into supply chain management, improving logistical operations
. Initiatives are being developed to integrate AI more deeply into supply chain management, improving logistical operations
[3].
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Smart City Initiatives
AI applications are central to Hong Kong's smart city vision. The government's smart city initiatives promote AI's role in urban development and industry transformation, emphasizing infrastructure and skills development to foster AI growth
[5][15]. The city's Innovation and Technology Development Blueprint supports these initiatives by ensuring that AI technologies are deployed responsibly and ethically
. The city's Innovation and Technology Development Blueprint supports these initiatives by ensuring that AI technologies are deployed responsibly and ethically
[15].
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Financial Services
Hong Kong's status as an international financial center provides a fertile ground for AI applications in the financial sector. The Hong Kong Special Administrative Region (HKSAR) Government has issued policies to promote the responsible use of AI in the financial market, aiming to balance innovation with precaution
[16][17]. Local universities, such as the Hong Kong University of Science and Technology (HKUST), support this initiative by offering AI models and resources to financial institutions, providing advisory and training services
. Local universities, such as the Hong Kong University of Science and Technology (HKUST), support this initiative by offering AI models and resources to financial institutions, providing advisory and training services
[17].
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Challenges and Opportunities
The artificial intelligence (AI) landscape in Hong Kong presents both significant challenges and promising opportunities. One of the primary challenges faced by AI enterprises in Hong Kong is the difficulty in recruiting technical talent. According to a study conducted by the Hong Kong Productivity Council (HKPC) and the Hong Kong Institute of Economics and Business Strategy, 49% of AI-related enterprises reported encountering recruitment difficulties. This shortage of skilled professionals could impede the growth and development of the AI industry in the region
[10].
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In terms of opportunities, Hong Kong's position as a potential AI hub is bolstered by several factors. The city boasts a robust funding landscape, AI-friendly policies, and world-class infrastructure, which provide a conducive environment for AI companies and foreign investors to thrive
[6]. Additionally, the increased integration across the Greater Bay Area—comprising Hong Kong, Macao, and nine nearby cities in mainland China's Guangdong province—offers expanded opportunities for collaboration and innovation
. Additionally, the increased integration across the Greater Bay Area—comprising Hong Kong, Macao, and nine nearby cities in mainland China's Guangdong province—offers expanded opportunities for collaboration and innovation
[1].
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Furthermore, the Hong Kong government's strategic focus on AI and data science, as outlined in the "2023 Policy Address," demonstrates a commitment to transforming Hong Kong into an "AI and Data Industry Development Hub"
[10]. Collaborative efforts between local universities and global institutions to attract top AI talent also underscore the potential for groundbreaking discoveries and academic excellence
. Collaborative efforts between local universities and global institutions to attract top AI talent also underscore the potential for groundbreaking discoveries and academic excellence
[18].
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However, the expansion of AI technologies necessitates careful consideration of ethical issues and data privacy. The Hong Kong government has developed an Ethical AI Framework to ensure a balanced approach that safeguards public interest while fostering innovation
[19]. This framework, alongside stringent data privacy laws such as the Personal Data (Privacy) Ordinance, positions Hong Kong as a secure and responsible location for AI development
. This framework, alongside stringent data privacy laws such as the Personal Data (Privacy) Ordinance, positions Hong Kong as a secure and responsible location for AI development
[20].
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Future Prospects
The future of artificial intelligence (AI) in Hong Kong is poised for significant growth, driven by a combination of robust government support, a rapidly evolving technological landscape, and increasing adoption across various sectors. Projections indicate that the generative AI market in Hong Kong is expected to grow by 46.34% from 2024 to 2030, potentially reaching a market volume of USD 2.75 billion by 2030
[21]. This growth is complemented by strategic initiatives such as the Innovation and Technology Development Blueprint, which aims to foster AI development through infrastructure and skills enhancement
. This growth is complemented by strategic initiatives such as the Innovation and Technology Development Blueprint, which aims to foster AI development through infrastructure and skills enhancement
[15].
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Moreover, Hong Kong's strategic focus on transforming its real estate industry through digitalization and AI showcases the potential for industry-specific advancements. Startups like those developing products such as Athena and BackHome.hk are leveraging AI to innovate within the real estate sector
[22]. Similarly, the city's biotechnology, medical, and healthcare industries are set to expand significantly, driven by demographic changes, government initiatives, and advancements in technology
. Similarly, the city's biotechnology, medical, and healthcare industries are set to expand significantly, driven by demographic changes, government initiatives, and advancements in technology
[23].
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The local government recognizes AI as a "data-driven, double-edged, and dynamic" tool, understanding the importance of balancing opportunities and challenges, especially concerning cybersecurity and privacy
[17]. By fostering an environment conducive to AI research, development, and industry collaboration, Hong Kong aspires to position itself as a leading hub for artificial intelligence, thus driving both economic and social impact
. By fostering an environment conducive to AI research, development, and industry collaboration, Hong Kong aspires to position itself as a leading hub for artificial intelligence, thus driving both economic and social impact
[9].
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AI adoption is also expected to significantly boost economic benefits for businesses, with estimates suggesting potential gains of HKD 287.4 billion (USD 36.7 billion) by 2030 if AI-powered products and solutions are widely adopted
[15]. This presents both opportunities and challenges as consumer preferences shift towards more personalized and efficient services driven by AI technology
. This presents both opportunities and challenges as consumer preferences shift towards more personalized and efficient services driven by AI technology
[5]. As Hong Kong continues to advance its AI capabilities, it is likely to see substantial productivity and innovation gains across various sectors, further cementing its role as a key player in the global AI landscape.
. As Hong Kong continues to advance its AI capabilities, it is likely to see substantial productivity and innovation gains across various sectors, further cementing its role as a key player in the global AI landscape.
Notable Figures in Hong Kong AI
The Hong Kong AI scene is home to several prominent figures who have contributed significantly to its development and recognition on the global stage. Among these notable personalities is Professor Ma Wei-ying, who has been appointed as the Director-Designate of the Hong Kong Institute of AI for Science at the City University of Hong Kong (CityUHK). His leadership is pivotal in driving AI-driven research in collaboration with academic and industry partners
[24].
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The academic community in Hong Kong has also attracted internationally renowned talent, including Nobel laureates and Turing Award winners. The Hong Kong University of Science and Technology (HKUST), for instance, is known for its distinguished faculty, which includes recipients of prestigious accolades such as the Fields Medal and the Veblen Prize
[12]. This influx of expertise has helped establish vibrant academic communities where AI research and development thrive
. This influx of expertise has helped establish vibrant academic communities where AI research and development thrive
[18].
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Additionally, Professor Freddy Boey, the President of CityUHK, has played a significant role in positioning Hong Kong as a strategic hub for AI innovation. Under his leadership, the university's research initiatives have garnered international acclaim, with over 80% of research rated as “internationally excellent” or “world-leading” in the Research Assessment Exercise 2020
[11].
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These figures, alongside others in the academic and industrial sectors, are instrumental in fostering an environment that promotes AI advancements and positions Hong Kong as a leader in the AI sector
[6][21].
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International Collaborations
Hong Kong's AI scene is characterized by a strong emphasis on international collaborations that enhance its research and development capabilities. A notable collaboration is the establishment of the InnoHK research clusters, such as Health@InnoHK and AIR@InnoHK, which aim to attract world-leading universities and research institutes to collaborate with local universities, thereby creating a hub for cutting-edge research in AI and related technologies
[1][25].
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The collaborative ecosystem extends beyond local initiatives. For instance, the Hong Kong University of Science and Technology (HKUST) is actively involved in international projects, such as the Hong Kong Generative AI R&D Center (HKGAI), which showcases an array of AI projects at global events like InnoEx 2024
[11]. This joint-university venture exemplifies Hong Kong's commitment to leveraging international partnerships to advance AI applications across various sectors.
. This joint-university venture exemplifies Hong Kong's commitment to leveraging international partnerships to advance AI applications across various sectors.
Furthermore, strategic partnerships with institutions like The University of Queensland are being developed to tackle environmental sustainability issues, demonstrating a broader scope of international collaborations beyond AI alone
[2]. These partnerships align with Hong Kong's strategy to integrate more closely with the Greater Bay Area, tapping into the vast opportunities in the region while leveraging the high-quality data and research expertise from the UK and other international entities
. These partnerships align with Hong Kong's strategy to integrate more closely with the Greater Bay Area, tapping into the vast opportunities in the region while leveraging the high-quality data and research expertise from the UK and other international entities
[1].
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In addition to these research-focused initiatives, Hong Kong's universities are investing in state-of-the-art facilities and infrastructure to support AI education and innovation. These investments foster an environment conducive to international collaboration, providing the necessary physical resources and technical support for global partnerships in AI research and development
[18].
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Through these efforts, Hong Kong is positioning itself as a strategic bridge for innovative companies seeking access to the Mainland market while maintaining robust international connections that drive advancements in AI technology
[6].
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Major Outcomes and Challenges
The rapid adoption of artificial intelligence (AI) in Hong Kong has led to significant advancements and opportunities across various sectors, including logistics, finance, and healthcare. One of the notable outcomes is the enhancement of logistics operations, as AI technology allows for more efficient management of supply chains and meets the growing demand for immediate goods delivery in both B2B and B2C contexts
[4]. This shift has been crucial for Hong Kong, given its status as a leading logistics hub, with Hong Kong International Airport recognized as the world’s busiest cargo airport in 2021
. This shift has been crucial for Hong Kong, given its status as a leading logistics hub, with Hong Kong International Airport recognized as the world’s busiest cargo airport in 2021
[14].
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In the financial sector, AI is reshaping the landscape by promoting growth and addressing challenges related to cybersecurity, data protection, and intellectual property rights. The Hong Kong government has been proactive in encouraging financial institutions to develop robust AI governance strategies that incorporate a risk-based approach and human oversight
[17]. This is complemented by local universities like the Hong Kong University of Science and Technology (HKUST), which are providing resources and expertise to aid financial institutions in adopting AI technologies
. This is complemented by local universities like the Hong Kong University of Science and Technology (HKUST), which are providing resources and expertise to aid financial institutions in adopting AI technologies
[17].
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However, the AI scene in Hong Kong is not without its challenges. The government is tasked with finding a balance between safeguarding public interests and promoting innovation, particularly in the implementation of AI and data-driven projects
[19]. This requires careful consideration of AI and data ethics to ensure that technological advancements do not lead to adverse outcomes. Moreover, the digital transformation accelerated by the COVID-19 pandemic has highlighted issues such as insufficient high-performance computing processing power and a shortage of technical talent, which pose ongoing obstacles to further AI development
. This requires careful consideration of AI and data ethics to ensure that technological advancements do not lead to adverse outcomes. Moreover, the digital transformation accelerated by the COVID-19 pandemic has highlighted issues such as insufficient high-performance computing processing power and a shortage of technical talent, which pose ongoing obstacles to further AI development
[10].
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In the healthcare sector, AI is seen as a disruptive force capable of enhancing service delivery and reducing costs. Initiatives such as the InnoLife Healthtech Hub are part of the government's efforts to bolster growth in biotech and healthcare through technology
[23]. Yet, this transformation is also dependent on overcoming challenges related to healthcare finance reforms and staff shortages, which have historically impeded progress in Hong Kong's healthcare system
. Yet, this transformation is also dependent on overcoming challenges related to healthcare finance reforms and staff shortages, which have historically impeded progress in Hong Kong's healthcare system
[26].
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AI Technologies and Innovations
Hong Kong has emerged as a significant player in the global AI landscape, with numerous advancements and initiatives showcasing the region's commitment to AI technology and innovation. The city is actively pursuing the development and application of AI across various sectors to position itself as a leader in AI and innovation.
One of the major contributors to AI research and development in Hong Kong is the Hong Kong Generative AI R&D Center (HKGAI). Led by the Hong Kong University of Science and Technology (HKUST), HKGAI has unveiled a diverse range of AI projects, demonstrating applications in multiple areas at events such as InnoEx 2024
[11]. This collaborative venture is pivotal in pushing the boundaries of AI research and fostering a culture of innovation within the academic community.
. This collaborative venture is pivotal in pushing the boundaries of AI research and fostering a culture of innovation within the academic community.
The Hong Kong Special Administrative Region (HKSAR) Government is also playing a crucial role in promoting AI development. The introduction of AI into primary and secondary education is aimed at enhancing students' and teachers' understanding and application of AI tools, such as ChatGPT, to improve educational outcomes
[27]. Furthermore, the government has advocated for large-scale AI applications to lead by example in the development of smart cities and smart governance
. Furthermore, the government has advocated for large-scale AI applications to lead by example in the development of smart cities and smart governance
[10].
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To support startups in AI technology, initiatives like the twelve-month program at HKAI LAB are empowering new enterprises to commercialize their AI inventions
[28]. Such programs are instrumental in nurturing innovation and helping startups navigate the complexities of bringing AI technologies to market.
. Such programs are instrumental in nurturing innovation and helping startups navigate the complexities of bringing AI technologies to market.
Moreover, the real estate industry in Hong Kong is undergoing a transformation with the integration of AI technologies. Prop-tech-focused teams are developing innovative products like Athena and BackHome.hk to drive digitalization in the real estate sector, signaling a shift towards more technology-driven business practices
[22].
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The rapid advancement of AI technology in Hong Kong necessitates robust data protection laws and regulations to ensure security and privacy, recognizing AI as a "data-driven, double-edged, and dynamic" tool
[17]. This understanding underscores the dual nature of AI, highlighting both its potential benefits and the challenges it poses in areas like cybersecurity.
. This understanding underscores the dual nature of AI, highlighting both its potential benefits and the challenges it poses in areas like cybersecurity.
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