As China elevates “scenario innovation” to the level of national strategy, the cultivation and opening of application scenarios have become a critical pathway for transforming technology into real productivity. Recent State Council directives make it clear that scenarios are key innovation resources, a bridge connecting technology and industry, and linking research and development (R&D) with the market. Scenario development now serves as a national mechanism for validating new technologies, products, and industries. By building “test beds” for emerging technologies, “accelerators” for new industries, and “proving grounds” for institutional innovation, China aims to speed up commercialization and foster new quality productive forces.

Artificial intelligence is a prime example. Strategic deployment of AI application scenarios not only deepens the integration of technology with sectors such as smart manufacturing, smart cities, and cybersecurity, but also provides a launchpad for frontier technologies, including generative AI and multimodal large models to achieve real-world implementation and commercial impact.

HK building scenario-driven “AI+” pathways

Hong Kong is actively developing localized AI application scenarios. The 2025 Policy Address identified AI as a core driver of the next wave of technological revolution and industrial transformation. With strengths in strong research capacity, capital connectivity, data, professional talent, and an internationalized application environment, Hong Kong is well positioned to develop into one of the world’s most dynamic AI hubs, serving local needs while contributing to the national scenario-driven agenda.

To support “AI+” development, the Hong Kong Special Administrative Region government has adopted a dual strategy of strengthening infrastructure and promoting application-oriented development, with the dual goals of “industries for AI” and “AI for industries”. Key measures include HK$1 billion ($128.1 million) to establish the Hong Kong AI Research and Development Institute, supporting upstream R&D, accelerating mid to downstream commercialization, and expanding applied AI scenarios, and HK$3 billion under the Frontier Technology Research Support Scheme to attract world-class researchers to co-develop AI applications in Hong Kong.

From technology-first to scenario-first

Rapid technological progress alone does not guarantee real-world impact. Without credible application scenarios, innovation often remains conceptual, lacking data validation, operational feedback and market support, making it difficult to translate into productivity gains or improved quality of life. Hong Kong must therefore adopt a scenario-driven approach to ensure that R&D aligns closely with market demand, reduces the “technology-first, application-lagging” gap, and creates clearer pathways for scale-up.

Across the Asia-Pacific, leading economies including China, Japan, and Singapore have elevated AI to national strategic priority, launching targeted plans and real-world pilots to build resilient AI ecosystems. Hong Kong SAR must tailor its approach to its unique context.

Well-designed application scenarios should achieve dual objectives simultaneously: 1) Industrial advancement: Enterprises can embed intelligence and automation into core operations to shorten development cycles, improve responsiveness, and accelerate digital transformation. At the same time, government and industry can open more application scenarios, especially in regulated and high-impact domains, to help build a complete digital economy ecosystem and speed up commercialization. 2) Community benefit: Technology should enhance public services and daily life, delivering tangible convenience, safety, and well-being. Community-based pilots provide direct feedback and ensure innovation remains people-centered and improves quality of life.

Application scenarios are not only a core driver of technological development, but also a strategic pillar in Hong Kong’s effort to become an international innovation and technology hub. Looking ahead, by combining policy direction with market mechanisms, the city can foster a virtuous cycle of technology-scenario-industry

Tailoring scenarios to local conditions and go global

Developing new quality productive forces must be grounded in local realities. As a highly internationalized city, the world’s freest economy, and a core hub of the Guangdong-Hong Kong-Macao Greater Bay Area, Hong Kong possesses distinctive institutional strengths, a mature industrial and service base, and an open market environment, providing a solid foundation for scenario innovation. Successful internationalized scenarios developed in Hong Kong can serve as strategic springboards for enterprises expanding into global markets.

The government emphasizes the need for development strategies tailored to Hong Kong’s own conditions. Deeper collaboration with Greater Bay Area partner cities can create cross-border application scenarios and accelerate the implementation and regional transformation of technological achievements. Only by converting institutional strengths, industrial capabilities, and regional collaboration into scenario-driven innovation momentum can Hong Kong seize opportunities in the global technology race and accelerate its development into an international innovation and technology center.

From concept to commercialization

Hong Kong’s innovation ecosystem is increasingly focused on localization, application, and practical deployment. By aligning technology with the city’s spatial constraints and industrial structure, multiple scenario-based application ecosystems are taking shape.

In smart manufacturing, the “microfactory” model, integrating AI and IoT, enables small-batch, low-inventory, and highly customized production. This offers a practical route for local manufacturers operating under land and cost constraints, enabling more flexible and efficient production without relying on large-scale footprints.

In smart city development, the Autonomous Air-ground Cooperative Tunnel Inspector system, jointly developed by the Hong Kong Productivity Council (HKPC), the Civil Engineering and Development Department, and the Hyder-Meinhardt Joint Venture, overcame the challenge of positioning in GPS-denied environments. By combining AI with coordinated robotics, inspection efficiency increased more than twentyfold. The system will be deployed in the Trunk Road T2 and Cha Kwo Ling Tunnel projects and has potential applications in emerging sectors such as the low-altitude economy.

Another example is the InspecSpider robot, co-developed by HKPC and Green Light Multiplex Co Ltd, which specializes in rust detection for high-mast lighting, reducing the need for road closures and manual labor. It is currently undergoing trials at Hong Kong International Airport and may be extended to other smart maintenance scenarios. Both innovations have earned international recognition, winning gold and silver Edison Awards, demonstrating how scenario-led deployment can translate advanced technologies into practical tools that support high-quality urban development.

Powering the future with scenario-driven innovation

Application scenarios are not only a core driver of technological development, but also a strategic pillar in Hong Kong’s effort to become an international innovation and technology hub. Looking ahead, by combining policy direction with market mechanisms, the city can foster a virtuous cycle of technology-scenario-industry.

The author is chief technology officer of the Hong Kong Productivity Council.

The views do not necessarily reflect those of China Daily.