Speech by the Acting Commissioner for Digital Policy, Mr Daniel Cheung, JP, at the “IAB HK C26 Conference & Exhibition” (with photos)

Brian (Chairman of IAB HK, Mr Brian Hui), distinguished guests, ladies and gentlemen,

Good morning. It is my great pleasure to join over a thousand innovators and business leaders here at IAB HK C26 today. This year’s theme “Business Re-imagined” is a call to action. It asks all of us to strategically rethink our business models in the era of artificial intelligence (AI) and rapid digital transformation.

Driven by soaring internet penetration, Hong Kong enterprises are expanding rapidly across digital platforms. The data tells a compelling story, while overall advertising expenditure held steady at HK$33.9 billion last year, spending on social media surged by 15%. This shift is powered by AI. From AI chatbots delivering real-time personalised recommendations, to predictive consumer analytics and Generative AI for content creation, marketing landscape is evolving faster than ever. To support such evolution, the Government is partnering with you to make this re-imagined future a reality.

First, we have set a clear vision. AI is a strategic priority for Hong Kong, and we are driving “industries for AI” and “AI for industries”. Chaired by the Financial Secretary, the Committee on AI+ and Industry Development Strategy will establish a clearer roadmap and cultivate a more supportive environment for AI adoption and innovation.

Furthermore, the Hong Kong Artificial Intelligence Research and Development Institute will commence operation soon this year. As a leading force in our AI ecosystem, it will advance frontier research, drive commercialisation, provide governance advice, and attract top international talent to our city.

Second, we are providing direct financial support to help Hong Kong enterprises accelerate transformation. Through the enhanced Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund), we are offering targeted funding for projects that integrate AI into branding and marketing. By lowering the financial barriers to technology adoption, we empower brands and small and medium enterprises (SMEs) to upgrade their digital capabilities and remain competitive in a fast-moving market.

Third, we are making transactions easier in the digital economy. By the end of this year, my office, the Digital Policy Office (DPO) will launch the Digital Corporate Identity (CorpID) Platform, which will provide one-stop secure digital identity authentication and related services to facilitate companies to transact across the public and private sectors. An AI assistant built into the CorpID will answer enquiries, offer personalised services, and recommend suitable funding schemes and public support to enterprises, especially SMEs.

Finally, as we scale up AI adoption, we remain equally committed to governing it responsibly. The Government has issued the Ethical AI Framework and the Hong Kong Generative AI Technical and Application Guideline. These provide practical guidance on areas such as ethics, data security and system robustness. Building on this, the latest Policy Address sets out an AI risk-governance strategy that addresses your core operational concerns. A Commissioner for AI will support the Chief Secretary for Administration in actively clarifying legal liabilities, ensuring safe industry applications, and helping prepare your workforce for AI-driven changes.

To foster widespread AI adoption, promoting widespread AI literacy is just as important. Under the “AI for All” Inclusive Programme, the Government will roll out more than 200 training courses and activities by the first quarter of 2028, including programmes targeted at SMEs and working professionals, providing practical, workplace-tailored training that encourages knowledge sharing, enhances efficiency and boosts competitiveness.

Re-imagining business is not a task any government or any single company can accomplish alone. It requires a collective effort. Together, let us not simply adapt to the future of business, but actively shape it. In closing, I wish you all a productive and inspiring conference. Thank you.

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