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Hong Kong is seeking to turn its longstanding strengths in finance, research and international trade into a platform for artificial intelligence and robotics, as officials compete with other Asian cities for investment, companies and highly skilled workers.
The push represents an important shift for the Chinese territory, whose economy has traditionally depended on financial services, property, logistics and tourism. Rather than attempting to replace those industries, the government wants AI to modernise them while creating new businesses in fields such as advanced manufacturing, health technology and autonomous systems.
Hong Kong’s strategy also draws on its position beside Shenzhen, a major technology and manufacturing centre. Officials say the combination could allow research conducted at Hong Kong universities to be developed, tested and manufactured through the wider Greater Bay Area, which links Hong Kong and Macao with nine cities in southern China.
Public investment builds an AI foundation
The government has described AI as a core industry and adopted an “AI+” strategy intended to promote both “industries for AI” and “AI for industries.” The approach combines computing infrastructure, research funding, training programmes and incentives intended to move discoveries from laboratories into commercial use.
Central to that effort is Cyberport’s Artificial Intelligence Supercomputing Centre, which began operating in December 2024. The facility provides computing capacity needed to train and operate sophisticated AI models, resources that can otherwise be prohibitively expensive for universities and start-ups.
The government allocated 3 billion Hong Kong dollars, or about $385 million, to a three-year subsidy programme supporting eligible users of the centre. According to Cyberport, approved universities, research organisations and companies can generally receive subsidies covering as much as 70% of the cost of computing services.
Hong Kong also set aside HK$1 billion to establish an Artificial Intelligence Research and Development Institute. Scheduled to begin operating in the second half of 2026, the institute is intended to connect basic research with product development and wider industrial adoption.
Research is already spread across 16 AI and robotics laboratories within the government-backed InnoHK network. Officials said in July that those laboratories had assembled nearly 1,200 researchers from Hong Kong and overseas. Their work includes generative AI, medical applications, computer vision, automation and intelligent machines.
A proposed HK$10 billion Innovation and Technology Industry-Oriented Fund would add another source of capital. The fund is expected to direct public and private investment towards AI and robotics, semiconductors, smart devices, health technology and other industries considered strategically important.
Finance becomes a proving ground
Hong Kong’s greatest potential advantage may be its financial system. Banks, insurers and asset managers offer opportunities to test AI in customer service, fraud detection, regulatory compliance, document processing and risk assessment. Financial institutions, however, must demonstrate that automated decisions remain secure, explainable and fair.
The Hong Kong Monetary Authority and Cyberport launched a generative AI sandbox in 2024 to let banks test applications under controlled conditions. The inaugural group included 15 uses proposed by 10 banks and four technology companies. A second round drew more than 60 proposals, from which regulators selected 27 uses involving 20 banks and 14 technology partners.
Authorities expanded the programme in March 2026 through Sandbox++, bringing banking, securities, pensions and insurance regulators into a broader framework. The programme encourages financial institutions to develop cross-sector applications while examining data security, consumer protection and model risk before systems are deployed commercially.
That cautious approach reflects the tension at the heart of Hong Kong’s ambitions. Financial firms can reduce costs and process information more rapidly with AI, but inaccurate or biased outputs could harm customers and undermine confidence. Regulators have consequently emphasised human oversight, responsible governance and protection of confidential information.
Robotics provides a physical counterpart to that digital transformation. The Hong Kong Industrial Artificial Intelligence and Robotics Centre is developing technology for logistics, automated assembly and quality inspection. Universities and start-ups are also exploring warehouse machines, medical robots and service systems for buildings and public facilities.
Hong Kong does not have a single law governing intelligent robots. The government told lawmakers in May that deployments are instead covered by existing sector-specific and technology-neutral laws. Officials said regulation would continue to evolve as machines become more autonomous and operate more frequently in public spaces.
Talent and commercialisation remain tests
Public spending alone will not guarantee that Hong Kong becomes a global technology centre. The territory must compete for engineers, data scientists and entrepreneurs with mainland Chinese cities as well as Singapore, Tokyo and other established hubs. It must also persuade investors to support expensive, long-term research rather than concentrating on businesses offering quicker returns.
The government’s 2026-27 budget allocated HK$50 million to help public organisations, technology companies and universities offer AI courses, seminars and competitions. Authorities have also encouraged universities to expand relevant programmes and proposed additional retraining for workers whose jobs are being changed by automation.
Hong Kong’s universities offer a strong research base, but commercialising their discoveries has often proved more difficult. Laboratories need access to computing power, specialist equipment, patient capital and manufacturers capable of transforming prototypes into dependable products. Cooperation with Shenzhen could address some of those weaknesses, while Hong Kong contributes international financing, intellectual-property services and professional expertise.
Geopolitical tensions present another complication. Hong Kong can serve as a bridge between mainland research and global capital, but restrictions on advanced chips and technology transfers could limit access to critical equipment. Companies must also navigate different expectations surrounding data, cybersecurity and cross-border business.
The government’s strategy is therefore both ambitious and pragmatic: use AI and robotics to reinforce the sectors Hong Kong already understands while building industries capable of sustaining future growth. Its success will depend less on headline funding commitments than on whether researchers, regulators and investors can turn that support into trustworthy products with customers beyond Hong Kong.
