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Budget Speech

Artificial Intelligence +

34. We are pressing ahead with the industrialisation of AI and deepening its integration across various industries, while encouraging wider AI application, thereby achieving the target of adoption and utilisation by all.

Committee on AI+ and Industry Development Strategy

35. The application of AI technology is swiftly driving the process of industrial transformation.  New technologies, new industries and new products are quickly emerging.  I will establish and chair the Committee on AI+ and Industry Development Strategy to formulate strategies and create favourable conditions for AI to empower the transformation and development of industries.  The committee will comprise experts, academics, enterprises and industry park companies with an initial focus on life and health technology and embodied AI.

Empower Industries through AI

36. In respect of basic research and development (R&D), the InnoHK Research Cluster has so far funded 16 laboratories specialising in AI and robotics technologies.  Their research focuses on technologies like AI‑driven robotics which could widely apply to industries such as healthcare, logistics, smart manufacturing and construction.

37. The $3 billion AI Subsidy Scheme launched by the Government has approved around 30 R&D applications in the fields of large language models, new materials and biomedicine, etc., to enhance local AI research standards and application.

38. We are making proactive efforts to align with the National AI+ Initiative by promoting "industries for AI" and "AI for industries" through application.  The Hong Kong Artificial Intelligence Research and Development Institute Company Limited will come into operation in the second half of this year.  The company aims to promote AI+ development and transformation of R&D outcomes.  It will also advise on matters such as the governance framework and regulatory regime for AI development.

39. The Hong Kong Monetary Authority (HKMA) and Cyberport have recently commenced trials for the second cohort of sandbox, focusing on "AI vs. AI" strategies for promoting secure and responsible AI application in the banking sector.

Computing Infrastructure

40. Hong Kong's overall computing power has now reached 5 000 petaFLOPS, laying an important foundation for supporting AI development.

41. The data facility cluster at Sandy Ridge, which can provide a gross floor area of 250 000 square metres, will further enhance Hong Kong's overall computing power.  The tender result of the site will be announced shortly.  The cluster will render crucial support for data and computing power required by the use of AI.

AI Training for All

42. AI brings new opportunities to society and employment market.  The key is to popularise the understanding and use of AI by all levels of society.

43. We will invite public organisations to organise, in collaboration with technology enterprises and tertiary institutions, AI application courses, seminars and competitions targeting students, young people and members of the public for enhancing their AI awareness and application skills, and to be responsible AI users.  We will allocate $50 million to take forward this initiative.

44. In the 2025/26 to 2027/28 triennium, the University Grants Committee (UGC)-funded universities will introduce a total of 27 undergraduate programmes related to STEAM, including AI, creative industries, data science, etc.  As regards self-financing post-secondary institutions, AI‑related programmes will be given priority to be included in the Study Subsidy Scheme for Designated Professions/Sectors starting from 2027/28 academic year.  Meanwhile, the Vocational Training Council (VTC) also includes AI application in the compulsory modules on Information Technology for all of its Higher Diploma programmes.

45. The Employees Retraining Board (ERB) will be upgraded as Upskill Hong Kong, providing various types of skill-based training courses, including AI application, thereby enhancing the competitiveness of the local workforce.

46. The Quality Education Fund has earmarked $2 billion to take forward digital education in primary and secondary schools by offering school‑based AI education programmes and subsidising students to participate in related activities. We also provide AI training for teachers.

Data Utilisation

47. To further enhance the utilisation of data within the Government, we will allocate additional resources to the Census and Statistics Department (C&SD) to expand its consulting and analysis services on data science for bureaux and departments, with a view to identifying pain points in operations and proposing corresponding solutions.

48. The C&SD will launch a new online platform for interactive data dissemination service next month.  Through integrating different types of statistical data, this platform enables enterprises and the public to conduct cross-subject analysis.  A natural language data query feature will be introduced into the platform in the third quarter.

Empower Public Services through AI

49. Various departments are proactively leveraging AI and related technologies to promote digital intelligence for enhancing the standard of public services.  For example:

(a) Traffic management: The Transport Department will explore the setting up of a traffic management platform integrating the use of big data analytics and AI, allowing comprehensive monitoring of real‑time traffic conditions and enhancing management efficiency;
(b) Employment services: To provide better services for job seekers and employers, the Labour Department will utilise AI to optimise job matching;
(c) Flood alert: The Drainage Services Department (DSD) will enhance its smart flood forecast and alert system.  Besides, the DSD has developed an AI large vision‑language model to analyse the images captured by street cameras, thereby speeding up emergency response; and
(d) Landslide risk assessment: To enhance the Landslip Warning system, the Civil Engineering and Development Department will consolidate Hong Kong's rainfall data, landslide records and man‑made slope data this year for conducting real‑time and dynamic landslide risk assessment.

50. The Government has set up the AI Efficacy Enhancement Team to co‑ordinate and steer government departments to apply AI, conduct process re‑engineering and enhance efficiency.  We will allocate $100 million for introducing leading technologies from the industry so as to accelerate digital intelligence transformation of the Government.

51. The Civil Service College will collaborate with the Digital Policy Office to provide AI training for civil servants to better grasp the relevant knowledge.

 

 

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