Hong Kong unveils ambitious AI research institute with $1 Billion investment

The new Hong Kong AI Research and Development Institute, supported by a HK$1 billion allocation from the government, is expected to begin operations as early as next year, according to Secretary for Innovation, Technology and Industry Sun Dong.

During a press conference on Thursday discussing the latest Budget measures, Sun noted the emergence of a new landscape for AI development, forecasting rapid progress in the coming decades. He stressed the need for Hong Kong to strengthen its fundamental research capabilities through integrated resource management.

The 2025-26 Budget has earmarked HK$1 billion for the establishment of the AI R&D Institute, which aims to drive innovative research and industrial applications of AI within the region. Sun stated that the institute will not only focus on fundamental research but also promote the application of AI across various sectors, including innovation and technology, finance, healthcare, and government services. The institute aims to lead in creating new business opportunities for industries in Hong Kong.

Regarding the institute's operational timeline, Sun hopes to obtain funding from the Legislative Council by mid-year, allowing the institute to start its functions as early as next year.

"This research institute is not being built from the ground up. Our Hong Kong Generative AI Research and Development Center (HKGAI), a part of InnoHK, has made considerable progress in generative research and development intelligence over the last year and a half," he said.

Looking forward, Sun mentioned plans to further integrate the existing InnoHK research center with the development of the new institute.

Additionally, he highlighted the importance of the Hetao Shenzhen-Hong Kong Science and Technology Innovation Cooperation Zone as a key driver for high-quality development in the Greater Bay Area. Sun confirmed the commitment of both the central and SAR governments to this initiative, emphasizing the need for effective coordination between Hong Kong and the cooperation zone while accelerating infrastructure development.