Hong Kong's AI Ambition: Balancing Research and Fiscal Responsibility

The Hong Kong government has earmarked HK$1 billion (approximately US$128 million) for the establishment of a new Artificial Intelligence Research and Development Institute, aiming to foster innovation and economic growth while also committed to reducing public spending. This strategic move aligns with the government's goal of cultivating new quality productive forces and leveraging the economic potential of innovation and technology (I&T), including AI.

The new AI institute will focus on both research and development (R&D) and industrial applications of AI, with the Digital Policy Office responsible for its formulation. The institute is expected to concentrate on several key areas, such as advanced manufacturing and materials, energy and sustainable development, life and health technology, AI supercomputing, and microelectronics. These areas are crucial for Hong Kong's economic and technological development, as they can help empower traditional industries to upgrade and transform through AI adoption.

To ensure the long-term sustainability and funding of the AI research institute, the government has proposed several measures. First, the establishment of a dedicated fund, with HK$1 billion already allocated, will support the institute's initial operations and research projects. Additionally, the government is inviting organizations to submit expressions of interest for the $10 billion I&T Industry-Oriented Fund, which aims to channel more market capital towards investing in emerging and future industries of strategic importance, including AI.

The government is also reviewing tax deduction arrangements for various expenditures incurred by firms in obtaining intellectual property rights, which could potentially encourage more private sector investment in AI research and development. Furthermore, the government is taking forward the establishment of a dedicated "technology enterprises channel" to help specialist technology and biotechnology companies raise funds and expand their business, fostering public-private partnerships in AI development.

To attract international investment and collaboration, the Hong Kong Investment Corporation will host the first International Young Scientist Forum on Artificial Intelligence and the first International Conference on Embodied AI Robots. These events can help Hong Kong become a global hub for AI innovation and attract top talent from around the world.

In conclusion, the Hong Kong government's commitment to establishing a new AI research institute demonstrates its dedication to fostering innovation and economic growth while balancing fiscal responsibility. By leveraging public-private partnerships, international collaboration, and strategic funding, the government aims to create a sustainable and thriving AI ecosystem that benefits both the local economy and the global AI community.