Support local businesses’ AI transitions to maximize city’s technology gains
Support local businesses’ AI transitions to maximize city’s technology gains
Developing artificial intelligence (AI) capabilities has been at the forefront of the Hong Kong Special Administrative Region’s innovation and technology (I&T) policy in recent years. The city’s first AI supercomputing facility, located in Cyberport, will begin operations later this year, according to the government Budget. Accompanying this is a HK$3 billion ($384 million) grant to support universities and tech companies in making use of the newly available computing power and developing their own AI programs. AI is in many ways an exciting new technology with immense economic potential; however, when planning for the future of AI in Hong Kong, we must ensure that these benefits are enjoyed by all.
With the advent of AI tools such as ChatGPT, there is potential for large economic gains for the city coming from the heightened efficiency of a wide range of AI-assisted tasks — from writing a simple email and editing YouTube videos, to solving difficult forecasting problems and even designing the latest fashion pieces.
AI’s largest impact is expected to be on knowledge-intensive sectors, such as banking, in which Hong Kong excels. According to a Hong Kong Monetary Authority study, almost 90 percent of Hong Kong banks reported using AI tools or have plans to use them, in areas such as AI customer service chatbots, voice and ID authentication, and fraud detection. Examples of other sectors that can greatly benefit from AI adoption include finance, information technology, and marketing. Yet even in less-knowledge-intensive sectors, AI can bring positive changes. Recently, local researchers invented an AI-powered trolley that can significantly lighten the workload of logistics and cleaning workers.
Among local businesses, the excitement aroused by AI contrasted with possible lack of readiness, both in terms of organizational capability and staff mentality. In a recent HSBC survey of small and medium-sized enterprises (SMEs), 88 percent of the respondents felt that the latest Gen-AI developments (such as ChatGPT and Sora) will bring business opportunities, but only one-third were familiar with the technology. Many also cited concerns about acquiring investment for new AI systems and retraining employees to work with them.
To make sure everyone can ride this coming wave of technology, helping businesses, especially SMEs, transition into the AI epoch is vital. To start with, it is important to create an AI-friendly business environment. Some progress has been made in this regard. As announced in the Digital Economy Summit in April, the HKSAR government is currently developing a homegrown Gen-AI platform. The government leading the way in developing AI systems sends a positive signal to businesses about the importance of embracing new technology. In addition, the first-adopter experience accumulated in the process will provide businesses with valuable counsel in how to work with AI. In conjunction, the up-and-coming Cyberport supercomputing facility will provide crucial computing infrastructure to businesses venturing into the AI territory.
As the HSBC survey revealed, upskilling the workforce is also central to more widespread AI adoption. While business owners need to keep pace with and invest in the latest AI developments, front-line workers operating these AI systems need to be comfortable with using new technology. To this end, education is crucial in creating an AI-ready workforce. Some have suggested providing subsidies to AI-related educational programs. The government started to include AI content in the junior secondary science curriculum last year.
However, there is still a missing link to the equation, and that is financing. Large datasets are needed to train AI programs, but many firms do not have the data collection systems needed to effectively power an AI program. Especially for small businesses that lack the relevant infrastructure, implementing a brand-new AI system may be costly. The HK$3 billion grant currently proposed is a good first step toward facilitating wider AI adoption in the city. As a next step, we can consider diverting resources specifically toward helping smaller, local businesses, including providing support in setting up data collection and analysis processes, and subsidies on purchasing and developing AI systems.
Notwithstanding AI’s immense potential for economic gains, like other technologies, it requires a period of gradual adaptation before their benefits can be reaped in full. This process of adaptation varies for different firms and sectors. It is up to us now to support businesses in their AI transitions and make sure that everyone has equal exposure to the gains of technology. For if they succeed, the rewards for Hong Kong will be substantial.
Developing artificial intelligence (AI) capabilities has been at the forefront of the Hong Kong Special Administrative Region’s innovation and technology (I&T) policy in recent years. The city’s first AI supercomputing facility, located in Cyberport, will begin operations later this year, according to the government Budget. Accompanying this is a HK$3 billion ($384 million) grant to support universities and tech companies in making use of the newly available computing power and developing their own AI programs. AI is in many ways an exciting new technology with immense economic potential; however, when planning for the future of AI in Hong Kong, we must ensure that these benefits are enjoyed by all.
With the advent of AI tools such as ChatGPT, there is potential for large economic gains for the city coming from the heightened efficiency of a wide range of AI-assisted tasks — from writing a simple email and editing YouTube videos, to solving difficult forecasting problems and even designing the latest fashion pieces.
AI’s largest impact is expected to be on knowledge-intensive sectors, such as banking, in which Hong Kong excels. According to a Hong Kong Monetary Authority study, almost 90 percent of Hong Kong banks reported using AI tools or have plans to use them, in areas such as AI customer service chatbots, voice and ID authentication, and fraud detection. Examples of other sectors that can greatly benefit from AI adoption include finance, information technology, and marketing. Yet even in less-knowledge-intensive sectors, AI can bring positive changes. Recently, local researchers invented an AI-powered trolley that can significantly lighten the workload of logistics and cleaning workers.
Among local businesses, the excitement aroused by AI contrasted with possible lack of readiness, both in terms of organizational capability and staff mentality. In a recent HSBC survey of small and medium-sized enterprises (SMEs), 88 percent of the respondents felt that the latest Gen-AI developments (such as ChatGPT and Sora) will bring business opportunities, but only one-third were familiar with the technology. Many also cited concerns about acquiring investment for new AI systems and retraining employees to work with them.
To make sure everyone can ride this coming wave of technology, helping businesses, especially SMEs, transition into the AI epoch is vital. To start with, it is important to create an AI-friendly business environment. Some progress has been made in this regard. As announced in the Digital Economy Summit in April, the HKSAR government is currently developing a homegrown Gen-AI platform. The government leading the way in developing AI systems sends a positive signal to businesses about the importance of embracing new technology. In addition, the first-adopter experience accumulated in the process will provide businesses with valuable counsel in how to work with AI. In conjunction, the up-and-coming Cyberport supercomputing facility will provide crucial computing infrastructure to businesses venturing into the AI territory.
As the HSBC survey revealed, upskilling the workforce is also central to more widespread AI adoption. While business owners need to keep pace with and invest in the latest AI developments, front-line workers operating these AI systems need to be comfortable with using new technology. To this end, education is crucial in creating an AI-ready workforce. Some have suggested providing subsidies to AI-related educational programs. The government started to include AI content in the junior secondary science curriculum last year.
However, there is still a missing link to the equation, and that is financing. Large datasets are needed to train AI programs, but many firms do not have the data collection systems needed to effectively power an AI program. Especially for small businesses that lack the relevant infrastructure, implementing a brand-new AI system may be costly. The HK$3 billion grant currently proposed is a good first step toward facilitating wider AI adoption in the city. As a next step, we can consider diverting resources specifically toward helping smaller, local businesses, including providing support in setting up data collection and analysis processes, and subsidies on purchasing and developing AI systems.
Notwithstanding AI’s immense potential for economic gains, like other technologies, it requires a period of gradual adaptation before their benefits can be reaped in full. This process of adaptation varies for different firms and sectors. It is up to us now to support businesses in their AI transitions and make sure that everyone has equal exposure to the gains of technology. For if they succeed, the rewards for Hong Kong will be substantial.
