What Changed
- Establishment of the Hong Kong Artificial Intelligence Research and Development Institute (AIRDI) and HK$1 billion injection into the AI Subsidy Scheme.
- Development of the Sandy Ridge Data Facility Cluster to achieve 180,000 PFLOPS of computing power by 2032.
- Implementation of an AI risk-governance strategy, legislative review led by the Department of Justice, and creation of a Commissioner for AI position.
Background
In a keynote address at the Schneider Electric Innovation Summit Hong Kong 2026 on October 8, 2026, the Permanent Secretary for Innovation, Technology and Industry of Hong Kong SAR, Mr. Kevin Choi, presented the territory’s policy framework for developing a comprehensive artificial intelligence (AI) ecosystem. The roadmap directly aligns with mainland China’s National 15th Five-Year Plan (2026–2030), which places AI at the core of national economic and social development through the 'Digital China' framework and the 'AI+' Initiative. Following the Hong Kong SAR Government's announcement of its First Five-Year Plan for Economic and Social Development in September 2026, this strategy aims to solidify Hong Kong's role as an international innovation and technology (I&T) center.
The policy leverages a dual focus on 'industries for AI' and 'AI for industries.' It aims to establish foundational research capabilities, computing infrastructure, data flow, talent development, capital investment, and technology commercialisation. Spatial platforms such as the Northern Metropolis and the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone—operating under the 'one river, two banks' and 'one zone, two parks' model—serve as central nodes connecting basic research, pilot testing, and industrial production across the boundary between Shenzhen and Hong Kong SAR.
Key Strategic and Regulatory Requirements
Hong Kong SAR's AI roadmap structures requirements across governance, R&D infrastructure, digital facilities, and public service integration:
1. Institutional Framework and Policy Coordination: Policy direction is led by the Committee on AI+ and Industry Development Strategy, chaired by the Financial Secretary. The committee unites government officials, industry representatives, and professional sectors to formulate priorities for AI-driven transformation.
2. Research and Commercialisation: The Hong Kong Artificial Intelligence Research and Development Institute (AIRDI) begins operations in 2026 to bridge scientific research with industry demand. In addition, the AIR@InnoHK cluster under InnoHK maintains 16 R&D laboratories employing approximately 1,200 researchers.
3. Digital Infrastructure and Computing Power: Hong Kong currently operates 5,000 PFLOPS of computing power, including 3,000 PFLOPS provided by Cyberport's AI Supercomputing Centre. To support expanding needs, the Sandy Ridge Data Facility Cluster in the Northern Metropolis is under construction, with phase one starting operations in 2027 and target capacity reaching 180,000 PFLOPS by 2032. Furthermore, the Government is undertaking a study on power usage effectiveness (PUE) for data centers based on high efficiency, supply stability, and low-carbon transition.
4. Risk-Based Governance and Legislative Oversight: Regulatory compliance is grounded in the Ethical Artificial Intelligence Framework and the Hong Kong Generative Artificial Intelligence Technical and Application Guideline. Concurrently, an Inter-Departmental Working Group led by the Department of Justice is actively reviewing existing legislation to accommodate AI applications while maintaining appropriate legal safeguards. The latest Policy Address sets out an AI risk-governance strategy spanning seven action areas, coordinated by the Chief Secretary for Administration, supported by a newly created post of Commissioner for AI within the Digital Policy Office (DPO).
Practical Implications for Stakeholders
For enterprise operators, technology vendors, research entities, and public institutions, the policy rollout carries explicit funding, operational, and compliance implications:
- Capital Support and Grants: Building on the HK$3 billion AI Subsidy Scheme introduced in 2024—which supported nearly 40 R&D projects in local large language models, synthetic biology, and medical models—the Government is injecting an additional HK$1 billion to fund AIRDI’s frontier research.
- Government Public Service Integration: Public bodies are implementing AI through the AI Efficacy Enhancement Team (AIEET), which has executed 30 enhancement projects across 13 departments. The Digital Policy Office provides an 'AI Solution Catalogue' and 'AI Toolbox' containing over 260 solutions, while deploying AI Assistants on 'iAM Smart' and the upcoming Digital Corporate Identity Platform.
- Community Training and Skills Tiering: The 'AI for All' Inclusive Programme will deliver over 200 courses by Q1 2028 via Cyberport, HKSTP, and HKPC across three tiers: Tier 1 (awareness for students, parents, elderly, underprivileged); Tier 2 (practical skills for university students and researchers); and Tier 3 (operational training for SMEs and working professionals).
Frequently Asked Questions
Q1: What is the current computing capacity in Hong Kong SAR and how will it scale?
A1: Hong Kong currently possesses 5,000 PFLOPS of computing power, with 3,000 PFLOPS derived from Cyberport’s AI Supercomputing Centre. The first phase of the Sandy Ridge Data Facility Cluster opens in 2027, with total capacity projected to reach 180,000 PFLOPS by 2032.
Q2: How is the Hong Kong SAR Government managing legal reviews and AI risk governance?
A2: AI governance follows a risk-based approach guided by the Ethical Artificial Intelligence Framework and Generative AI Technical and Application Guideline. An Inter-Departmental Working Group led by the Department of Justice is reviewing statutory legislation, while a newly appointed Commissioner for AI under the Digital Policy Office will assist government bureaux under a seven-point strategy coordinated by the Chief Secretary for Administration.
Q3: What public funding is allocated to support AI R&D projects?
A3: The Government's HK$3 billion AI Subsidy Scheme, launched in 2024, has supported nearly 40 R&D projects. An additional HK$1 billion injection was announced in the Policy Address specifically to fund frontier research at AIRDI.
Q4: How does the 'AI for All' Inclusive Programme operate for businesses and the public?
A4: Scheduled to launch over 200 training courses and activities by Q1 2028 through Cyberport, HKSTP, and HKPC, the program uses a three-tiered model: Tier 1 covers general digital literacy; Tier 2 provides technical skill-building for researchers and university students; and Tier 3 offers workplace-tailored application training for SMEs and professionals.
Who May Be Affected
Technology firms, AI developers, research institutions, SMEs, government departments, and educational bodies in Hong Kong SAR.
Cross-Border Context
Alignment with mainland China's National 15th Five-Year Plan (2026-2030) 'Digital China' and 'AI+' initiatives, and cross-boundary research data flow within the Hetao Shenzhen-Hong Kong Science and Technology Innovation Co-operation Zone.
What to check next
- Specific statutory changes proposed by the Department of Justice Inter-Departmental Working Group AI legislative review.
- Official launch date and structure of the Digital Corporate Identity Platform and the appointment of the Commissioner for AI.
This article provides general information and does not constitute legal advice. Consult the official text and obtain advice appropriate to your circumstances where needed.