Hong Kong Monetary Authority report: Hong Kong AI development must deepen integration with Greater Bay Area and accelerate AI research and commercialization.

On November 19, the Hong Kong Monetary Authority (HKMA) and Deep Knowledge Group jointly released the "Global Artificial Intelligence Competitiveness Index Report" (Fourth Edition). HKMA stated that as artificial intelligence gradually becomes the core driving force behind global economic transformation, how to enhance the competitiveness of countries and regions, strengthen governance, has become an important strategic issue faced by policymakers, businesses, and research institutions. The report analyzes policies and regulations in at least 25 regions, revealing differences in governance effectiveness and institutional capacity. It points out that one of Hong Kong's AI strategy goals is to align with mainland industries and maintain its role as a bridge between East and West. To expand its influence, the report recommends that Hong Kong must deepen its integration with the Guangdong-Hong Kong-Macao Greater Bay Area and accelerate the commercialization of AI research and development. The report notes that indicators such as computing power, research and development output, and venture capital can only reflect part of AI competitiveness. Risk assessment frameworks and regulatory support are equally important. It believes that places with mature governance systems can better apply AI securely, maintain public trust, and attract investments. The gap in AI governance is widening, and it is expected that in the next 10 years, regions with advanced governance systems will gain disproportionate economic and geopolitical advantages. Governance leadership ability is increasingly related to financial industry maturity, with places like Hong Kong, Singapore, the EU, the UK, the US, and the UAE showing that stronger financial regulation leads to more advanced AI governance. The report mentions that Hong Kong's AI industrial development adopts a pragmatic approach with financial leadership. Hong Kong is both an international financial hub and strives to become a regional leader in AI and data technology. One of Hong Kong's greatest strengths is its leading position in AI finance or regulatory technology. The measures taken make Hong Kong's financial ecosystem a responsible and trustworthy global model for AI integration. The report states that Hong Kong aims to use AI to consolidate its leadership position in financial services, biomedicine, and logistics, including the development of AI-driven smart city solutions, expanding public-private partnerships for AI research and development, nurturing talents, and building AI governance and regulatory capabilities. Looking ahead, the CEO of HKMA, Eddie Yue, stated that the "Fourteenth Five-Year Plan" of the country indicates the need to strengthen the combination of artificial intelligence with industrial development, cultural construction, livelihood security, and social governance, to seize the high ground in the application of artificial intelligence in industries, and to empower various sectors comprehensively. Therefore, the mainland's artificial intelligence industry will have more development space. As for Hong Kong, it issued a policy declaration on the responsible use of artificial intelligence in financial markets in October 2024. Therefore, he stated that as an international financial center and international hub for innovation and technology, Hong Kong can play its role as a "super connector" and contribute to the development of the mainland and overseas artificial intelligence industries.