Artificial intelligence (AI) is rapidly changing businesses across the globe, providing opportunities to optimize operations, engage customers, and innovate. While AI adoption is still in early stages in Hong Kong, I believe companies that recognize AI’s potential and develop a strategic approach will gain competitive advantages in their industries.
Of course, harnessing AI’s power requires building capabilities – quality data, digital infrastructure, and partnerships to develop in-house talent. A shortage of qualified AI practitioners poses challenges, but educational investments today will pay dividends. As a business leader, I cannot ignore how profoundly AI may disrupt different sectors entirely in coming years.
The banking sector is poised to undergo major transformations with the adoption of artificial intelligence. A report by the Hong Kong Monetary Authority found nearly 90% of retail banks have already implemented or plan to implement AI applications. The report summarizes insights from experts on AI development trends, use cases, implementation challenges, and the technology’s future outlook. With the right strategy and governance, AI can enable banks to deliver more personalized, efficient services while managing the associated risks. Reports like these from regulators provide valuable guidance for banks on their AI journey.
AI adoption cannot happen in isolation – it requires developing people’s capabilities as well. As one recent study noted, there is strong focus on automation, data and analytics platforms to scale AI. Almost a quarter of bankers surveyed believe AI tools like Microsoft’s Copilot can help them take more intelligent actions. But over half of banks recognize they will need significant training to prepare staff on using these generative AI tools effectively. Traditional data most companies have gathered wasn’t for machine learning or AI. That data may not be useful. Risk and compliance are huge.
Banks must invest in developing their workforce’s AI capabilities and implement responsible data governance to realize the full benefits of artificial intelligence.
However, Hong Kong faces several hurdles to become a globally recognized AI and data hub. The recent Hong Kong AI Industry Development Study highlighted that 49% of local AI enterprises have difficulties recruiting scarce technical talent. 44% expressed challenges in securing enough computational power and data for developing AI models. Compared to other regions actively investing in AI infrastructure and ecosystems, Hong Kong still lags in areas like high-performance computing capabilities, availability of large datasets, and policies enabling responsible data sharing.
For Hong Kong to achieve its full potential as an AI leader, we must build up our talent pipeline, improve access to computational resources and data, and increase adoption of AI in the public sector to catalyze innovation. A coordinated strategy between government, industry and academia is crucial. Investments in AI infrastructure and ecosystems, policies that empower data openness while protecting privacy, incentives that nurture startups and help traditional businesses adopt AI – these actions can help Hong Kong overcome current obstacles.
At HKBNES, we aim to not just adopt AI for our own operations, but also help equip Hong Kong businesses for the AI-powered economy. I believe Hong Kong’s banking sector must take a strategic approach to AI adoption – investing in people, data and responsible innovation – to shape a digitally enabled, human-centered future for financial services. The future starts today.
