Financial Secretary Paul Chan today unveiled measures to accelerate artificial intelligence (AI) industrialisation in his 2026-27 Budget that include the establishment of a committee on AI+ and industry development strategy to foster an environment where AI can drive industrial transformation.

Chaired by Mr Chan, the committee will comprise experts, academics and industry representatives, focusing initially on life and health technology and embodied AI. 

The Financial Secretary noted that the Government is deepening AI integration across sectors to encourage wider adoption and achieve “utilisation by all”. 

The Hong Kong Artificial Intelligence Research & Development Institute Company will come into operation in the second half of this year, aiming to promote AI+ development and advise on matters such as the governance framework and regulatory regime for AI development.

Computing Infrastructure

In this morning’s Budget, themed “Driving High-quality, Inclusive Growth with Innovation and Finance”, Mr Chan said Hong Kong’s overall computing power has now reached 5,000 petaFLOPS, laying an important foundation for supporting AI development and bringing new employment opportunities. 

The data facility cluster at Sandy Ridge will further enhance Hong Kong’s overall computing power and the tender result of the site will be announced shortly.  

The Government will allocate $50 million to boost AI literacy through collaborations between public organisations, tech enterprises and universities. This initiative includes courses and competitions designed to promote the responsible use of AI among students and the public. 

On the education front, University Grants Committee-funded universities will introduce 27 STEAM-related undergraduate programmes - including AI and data science - during the 2025-26 to 2027-28 triennium.

Mr Chan also noted that AI-related courses at self-financing institutions will be prioritised under the Study Subsidy Scheme for Designated Professions/Sectors starting from the 2027-28 academic year.

Complementing these efforts, the Vocational Training Council has integrated AI modules into all Higher Diploma programmes, while the Employees Retraining Board will be rebranded as Upskill Hong Kong to provide AI-focused training aimed at enhancing workforce competitiveness.

AI-empowered services

Government departments are leveraging AI and big data to enhance public services and digital intelligence. The Government will allocate $100 million for introducing leading technologies from the industry to accelerate the digital intelligence transformation of the Government.

Life and Health tech

The Financial Secretary said the Government is advancing the integrated development of life and health technology through the “One plus Three” model. This includes a headquarters for the Life and Health Technology Research Institutes to be set up at the Hetao Hong Kong Park and three university-led branches. 

To further establish Hong Kong as an international health innovation hub, an international clinical trial academy will be set up next year to attract foreign investment and help Mainland biomedicine technology go global.

Mr Chan added that the Government will inject $500 million into the Chinese Medicine Development Fund for undertaking research, training and international publicity on strategic themes.

New Industrialisation

The Government will launch the New Industrialisation Elite Enterprise Nurturing Scheme this year to support high-growth companies and foster emerging industries. To deepen industrial collaboration with the Mainland, $220 million will be earmarked to establish Hong Kong’s first national manufacturing innovation centre.

Mr Chan said the Government is also conducting a study on the city’s development of new industrialisation to align with national planning and accelerate the growth of new quality productive forces.