Hong Kong SAR’s momentum to embrace all things AI-related has accelerated notably since the January 2025 release by mainland China’s AI start-up DeepSeek, a low-cost large language model (LLM) that supports Cantonese, Putonghua and English.
A Hong Kong-developed LLM tool is currently being tested by more than 70 government departments before being rolled out to the Hong Kong business community and general public later this year. Developed by the Hong Kong Generative AI Research and Development Centre (HKGAI), the DeepSeek-powered HKGAI v1 is open source.
That makes HKGAI v1 deployable on consumer-grade hardware, which significantly reduces the costs – proprietary AI models tend to operate on subscription-based services. Technology experts are tipping the low-cost, trilingual-capable HKGAI v1 as a potential game-changer for Hong Kong SMEs that want to make use of AI-driven automation and data analysis.
A six-legged robodog is one recent example of business interest in transformative AI
Best friend
There is certainly widespread local business interest in transformative AI technologies, with a six-legged robodog unveiled at the recent Hong Kong International Film and TV Market, Asia’s largest film industry trade show, being one of the latest examples. Designed for transporting film-making equipment across challenging terrain, the Lenovo Daystar Bot GS robodog is equipped with autonomous learning capabilities and AI-integrated cameras.
Injecting an additional layer of vitality into the SAR’s expanding AI ecosystem, Hong Kong Financial Secretary Paul Chan announced in his 2025/26 Budget presentation in February that the government would spend HK$1bn (US$130m) to establish a Hong Kong AI Research and Development Institute. The body will support frontier research and real-world applications as well as upgrade the transformation of Hong Kong’s traditional industries.
To attract technology and AI-focused companies to Hong Kong, Chan also announced the government will review tax breaks for licensing fees for intellectual property rights. Meanwhile, Hong Kong bourse operator Hong Kong Exchanges and Clearing recently revealed it is setting up a dedicated AI enterprise channel to help tech businesses, especially companies from mainland China, to prepare for listing applications.
22% of employers plan to expand their tech teams this year
Skills
But while Hong Kong is ramping up tools and tax breaks for local businesses, major problems are emerging on the people front. Ironically, given that AI is often associated with the elimination of jobs, AI talent attraction has become the top challenge for many Hong Kong businesses as the burgeoning stream of technology becomes of increasing importance for them.
According to a 2025 job market outlook and salary guide for Hong Kong from HR and recruitment company Randstad, 62% of employers report a shortage of skilled technology talent, and 30% plan to increase budgets for technical hires in 2025. The Randstad report also notes that 22% of employers plan to expand their technology teams during 2025, with 16% specifically seeking talent to support digital transformation and AI integration initiatives. High on the list of in-demand skills are AI integration expertise, process optimisation, data analytics and expertise in digital ecosystems.
The Randstad findings were backed up at a recent careers fair staged at Hong Kong Cyberport. More than 580 employers attended the event – including start-ups, government departments and enterprises in the fields of edtech, health tech, fintech and digital entertainment – and around 60% of the 2,000+ vacancies they were looking to fill related to AI.
