Hong Kong’s first five-year plan places artificial intelligence and computing infrastructure at the heart of the city’s next stage of development. Its success, however, will depend less on the scale of the technology than on the quality of its applications, governance and social inclusion.
The plan has sent an unmistakable message: AI is no longer treated merely as a research topic or a promising area of innovation but positioned as a core industry and a tool for reshaping the economy. It calls for continued advancement of the “AI+” initiative, development of computing infrastructure, expansion of digital government, and wider application of AI across finance, trade, logistics, professional services, healthcare, and other public sectors. It also proposes developing the Sandy Ridge Data Facility Cluster, which is expected to begin operation by 2029 and eventually provide computing capacity equivalent to about 36 times Hong Kong’s current level. These are ambitious and necessary measures. Yet infrastructure alone will not make Hong Kong an AI leader. The decisive question is whether the city can turn computing power into productive, trusted and inclusive applications.
AI discussions often begin with processors, data centers and computing capacity. These are important foundations, but they are not the final measure of success. The real test is whether businesses can use AI to solve practical problems, whether public bodies can deliver services more effectively, and whether citizens can benefit without being excluded by cost, age or lack of digital skills.
This is why the plan’s emphasis on supporting small and medium-sized enterprises (SMEs) is significant. Large corporations generally have greater access to capital, tech expertise and data. SMEs, by contrast, may understand the value of AI but lack the resources to redesign their operations or train their staff.
The proposed enhancement of the Digital Transformation Support Pilot Program, backed by HK$300 million ($38.2 million) in SAR government funding, should therefore be viewed not merely as a tech subsidy. It should help enterprises rethink how they work. Buying an AI tool is not the same as transforming a business. A company may install a chatbot, automate a document process or adopt a generative AI platform, yet see little improvement if its underlying workflows remain inefficient. The most effective support would combine tech funding with business-process advice, staff training, cybersecurity guidance and assistance with data governance.
The public sector should be one of the most important testing grounds for responsible AI adoption. The government has proposed using AI, big data and the internet of things to improve interdepartmental data sharing, real-time analysis, risk alerts and public-sector management. It also plans to establish mechanisms to coordinate AI pilot projects and improve administrative efficiency.
But government use of AI must be accompanied by accountability.
Public trust will depend on strong safeguards for privacy, cybersecurity, accuracy and human oversight. When an automated system makes an error, there must be a clear route for correction and redress.
AI should help civil servants work more quickly, but not relieve them of the responsibility to make decisions.
The proposed mobile Elderly Health Care Voucher illustrates both the opportunities and the risks of digital government. A smartphone-based service could make it more convenient for elderly residents to access healthcare subsidies, reducing reliance on physical cards and offering a more flexible way to manage public services. However, digital convenience must not become a new form of exclusion. Some older people do not have smartphones, while others may struggle with authentication, applications, or online procedures. The mobile option therefore should complement, not immediately replace, existing arrangements. Physical and digital channels should operate in parallel during the transition. The principle should be simple: Digitalization must make public services easier to access.
The AI agenda also creates important possibilities for Hong Kong’s cultural and creative sectors. Arts organizations, museums, archives, festivals and creative enterprises could use AI to analyze audiences, forecast ticket demand, organize collections, translate materials, improve marketing and make cultural content accessible across languages and platforms. For cultural institutions, AI may prove particularly valuable in managing large bodies of information. With appropriate digital tools, archives, catalogs, performance records and oral histories can become more searchable and usable. But cultural data is not simply raw material. It often carries questions of ownership, identity, authorship and community consent. The use of AI in the creative industries must therefore address copyright, artists’ rights, cultural sensitivity and the risks of bias.
The five-year plan recognizes that appropriate legal and regulatory arrangements must support AI development. The government intends to review the legal framework for the wider use of AI and data, aiming to create conditions conducive to intelligent development. This work will be essential. Businesses need clarity on data use, intellectual property, liability and cybersecurity. Researchers need access to data within clear ethical boundaries. Residents need to be confident that their personal information will not be used irresponsibly.
Hong Kong’s international position gives it a particular advantage in this respect. The city has strong legal, financial, professional and research institutions, as well as close links with the Chinese mainland and the wider world. If it can bring these strengths together, Hong Kong could contribute not only to AI adoption but also to developing trusted standards for the region.
The first five-year plan has correctly identified AI and computing infrastructure as major drivers of future development. It has also recognized the need to support industry transformation, strengthen digital government and improve the city’s innovation ecosystem. But the plan’s success should not be judged by the number of AI systems launched, the amount of computing power installed, or the volume of investment announced, but by the answers to these questions: Are SMEs becoming more productive; public services becoming more accessible; workers receiving the training needed for a changing economy; residents protected from technological risks? Can artists and cultural organizations benefit while retaining control over their work; most importantly, is AI helping Hong Kong strengthen its role as an international city?
The author is vice-chairman of the Hong Kong Association of Interactive Marketing and an adviser to the Film and Television School of the Hong Kong Academy for Performing Arts.
The views do not necessarily reflect those of China Daily.
