With the rise of artificial intelligence (AI) in the retail industry in recent years, Hong Kong consumers have revealed they have less confidence in AI tools compared to their counterparts in the Guangdong-Hong Kong-Macao Greater Bay Area, highlighting a regional divide that could shape how retailers deploy AI-driven solutions, according to a report.

The joint study, published by KPMG China and GS1 Hong Kong on Monday, found that 59 percent of Greater Bay Area consumers believe AI can facilitate retail and services purchases, whereas only 28 percent of Hong Kong consumers said they shared this view.

“The Greater Bay Area’s retail sector has a more extensive adoption of AI technologies, which makes consumers in the region more familiar with AI-related products, therefore leading to greater confidence in AI,” said Alice Yip, partner and head of consumer and retail for KPMG China in the Hong Kong SAR. She suggested that Hong Kong retailers should expand their use of AI applications and strengthen data security measures to build greater trust in AI among Hong Kong consumers.

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The findings echoed those in a report compiled by global financial technology platform Adyen in September, which found that while AI is becoming more common across the Asia-Pacific region, Hong Kong consumers remain cautious, with their adoption rate below the regional average. It also said that as many as 35 percent of respondents were concerned about potential fraud risks or inaccurate recommendations from AI systems, reflecting the cautious attitude of Hong Kong consumers toward new technologies.

Anna Lin, chief executive of GS1 Hong Kong, noted that the Hong Kong SAR government has already established a dedicated task force on AI and plans to set up a special AI fund to encourage the widespread adoption of AI technologies in Hong Kong's retail industry.

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Amid the ongoing tariff wars, which have sent jitters across Asia-Pacific markets, AI has come to the fore by helping retailers analyze data more efficiently and make faster decisions, according to Anson Bailey, head of consumer and retail for KPMG China in the Asia-Pacific region. “AI innovations are reshaping the retail ecosystem, transforming supply chain management, customer experiences, and marketing strategies,” he said.

Contact the writer at akirawang@chinadailyhk.com