First, the internet and e-commerce revolution gave birth to e-government. Now, it’s artificial intelligence, which promises to be even more transformative.

With the central government’s full support, the Hong Kong Special Administrative Region is rapidly transforming its economy with a series of accelerated digital programs. At the forefront are AI and blockchain-driven financial technology. As the SAR government moves full steam ahead, private firms and research universities are being supported and funded to innovate with new products, services, and business models.

The ultimate goal is to create new opportunities and careers while boosting productivity for local businesses and workers alike. These include utilizing robots for public services. Road cleaning and garbage disposal are especially suited for such robotic automation.

Such government-led initiatives include establishing AI governance frameworks, building infrastructure, and accelerating digital adoption in public services and finance. The AI Efficacy Enhancement Team is tasked, as might be supposed, to boost government efficiency; and the Hong Kong AI Research and Development Institute was set up in March.

Under the AI+ Initiative, Hong Kong is rapidly being integrated with tech development across the Guangdong-Hong Kong-Macao Greater Bay Area. This is to foster a digital industry cluster and support the nation’s 15th Five-Year Plan (2026-30). Meanwhile, the government has also utilized digital tokens for green bonds, utilizing the digital renminbi, or e-CNY, and e-HKD.

The SAR signed a memorandum of understanding in April with the Cyberspace Administration of China, the nation’s top internet regulator, to promote the digital economy.

Hong Kong will become not only a “smart” city but also a streamlined one, marked by the absence of service disruptions. It’s less about making the city futuristic-looking and more about a superadaptive, connected city equipped to identify and address problems and spot opportunities quickly. In the past, governments built roads and waterways to serve people and commerce. Today, AI is assuming a prime role. Hong Kong must stride ahead to stay competitive in the AI era

Hong Kong enjoys distinctive advantages with its legal and financial systems, which are familiar to international firms and investors, while the city will be propelled by the Chinese mainland’s unstoppable technological momentum. They are well-matched to reinforce each other’s strengths.

This came after Hong Kong and Shanghai established programs to integrate their economies through the mutual authentication of digital identities, the development of cross-boundary public services, and deeper cooperation in data infrastructure and talent cultivation.

At the same time, officials must remain alert to growing AI risks and other challenges brought about by information technology. Last year saw a record number of cyberattacks, made even more dangerous by new AI methods. The public and private sectors must work together to develop robust AI security measures. This should be part of the government’s support, including financial incentives, for small and medium-sized enterprises (SMEs) to adopt AI while enhancing security. The New Industrialisation Funding Scheme will help SMEs adopt AI for digital transformation, having already supported over 120 AI-enabled production lines.

Hong Kong is a global city and is well-positioned to explore joint development with international bodies to build a center of excellence in advanced manufacturing and AI. It has a strong digital infrastructure, but it will need rapid, coordinated action to remain competitive with regional peers.

Since last year, the government has boosted its supercomputing capacity with the Cyberport AI Supercomputing Centre reaching 3,000 petaflops. A major data facility cluster is planned for Sandy Ridge in Lo Wu, providing 250,000 square meters of gross floor area to support AI demand. A HK$10 billion ($1.28 billion) RAISe+ Scheme has been established to accelerate the commercialization of AI research and development projects.

The government’s “AI Training for All” program will help boost AI skills across the community, with HK$50 million in support for public organizations partnering with tech firms to deliver training courses and seminars. Meanwhile, the Vocational Training Council is embedding AI into programs under its “AI+Professional” initiative, as universities are launching new undergraduate AI courses.

Just as the spread of the internet and e-commerce more than a quarter of a century ago transformed public service delivery, AI will do the same, requiring thoughtful implementation and oversight. The last e-government transformation in Hong Kong streamlined public services and the interface and communication between residents and officials. That has fundamentally improved efficiency and public accessibility.

But the emerging AI will be even more transformative. Complex systems and infrastructure can be integrated through AI to cover transport, power grids, water supply, healthcare, and identification. Many decisions in front-office operations serving the people may be automated. Bottlenecks and long queues can be quickly identified and addressed. AI agent systems are rapidly advancing and can take independent action to quickly analyze and deliver answers or solutions to requests and issues.

The government is now taking the lead, but it will need to be even more proactive in coordinating and supporting industries and educators to integrate the emerging AI revolution. Imagine these: AI-powered traffic management, energy consumption, waste management, public safety, environmental monitoring, and disaster resilience.

Hong Kong will become not only a “smart” city but also a streamlined one, marked by the absence of service disruptions. It’s less about making the city futuristic-looking and more about a superadaptive, connected city equipped to identify and address problems and spot opportunities quickly.

In the past, governments built roads and waterways to serve people and commerce. Today, AI is assuming a prime role. Hong Kong must stride ahead to stay competitive in the AI era.

The author has extensive experience working as a senior writer for various leading publications in Hong Kong.

The views do not necessarily reflect those of China Daily.