Artificial intelligence-driven finance is expected to become a major asset class for Hong Kong, a city that is promoting the technology’s application in the financial sector in a sustainable and responsible way, and emerging as an international leader for AI-finance governance, according to a report released on Wednesday.  

The Global AI Competitiveness Index Part 4, developed by Deep Knowledge Group, a data-driven consortium headquartered in London, with the Financial Services Development Council of Hong Kong as an official observer, evaluates AI competitiveness in terms of policy, governance and regulation.

It highlights how different regions are leveraging AI in distinct ways. Dubai, for instance, is characterized by “urban AI innovation”, while Hong Kong is defined as “finance-oriented AI”.

Hong Kong has taken a pragmatic, finance-driven approach to AI industrialization, the report says, combining its status as a global financial hub with efforts to reposition itself as a regional leader in AI and data science.

One of the city’s strongest differentiators in AI industrial strategy is its leadership in AI for finance and regulatory technology, according to the report. The Hong Kong Monetary Authority and the Securities and Futures Commission have jointly pioneered frameworks for AI-augmented financial compliance, fraud detection, and risk assessment.

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The HKMA’s newly launched “Fintech 2030” strategy, for instance, outlines a comprehensive road map covering next-generation data infrastructure, tokenized finance, and AI resilience, which encourages responsible AI adoption across financial institutions through shared industry models and governance standards.

“These initiatives together position Hong Kong’s financial ecosystem as a global exemplar of responsible, high-trust AI integration,” the report said.

This will help position the city as a benchmark and leader for other regions and countries in this field, said Dmitry Kaminskiy, general partner of Deep Knowledge Group.

He noted that AI is more than just technology — “it is empowering many other industries”, and in Hong Kong, AI-powered finance will become one of its key assets, potentially even emerging as a new asset class.

Kaminskiy said he has observed that “a number of quite advanced AI companies are moving to Hong Kong”, and some of them are planning to strike deals or go public on the Hong Kong stock exchange rather than on Nasdaq.

“Hong Kong, as an international financial center, is embracing AI with remarkable momentum,” said King Au, executive director of FSDC. For instance, more than three-quarters of banks in the city are deploying or piloting AI solutions in areas such as credit assessment and risk monitoring.

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Au said, by strengthening its role as a superconnector, Hong Kong can also serve as neutral ground, where AI ethics and standards are discussed and defined.

The report also noted that governance has become a primary driver of AI competitiveness, a departure from the traditional view that AI competitiveness is mainly determined by computing power, research output, and venture capital funding.  

The first three editions of the report series focused respectively on the global corporate and industrial landscape, scientific research, and human‑capital readiness. Patrick Glauner, professor of AI at Deggendorf Institute of Technology and an author of the series, said the fifth report — expected to be released in January 2026 — will spotlight AI and finance, and may debut during Hong Kong’s flagship event, the Asian Financial Forum.  

Contact the writer at irisli@chinadailyhk.com