Boosting Governance Seen Key for Hong Kong to Harness AI Safely
As concerns over the risks of artificial intelligence (AI) grow, strengthening governance emerges as a way for Hong Kong to harness the technology safely. Experts call for a unified regulatory standard with clear risk classification, robust privacy protection, and transparency, backed by a dedicated AI oversight body, to position the city as a leader in responsible AI development.
The Necessity of Sound AI Governance
As more people adopt AI at work and for personal use, the technology is fast becoming as essential and ubiquitous as electricity and running water. Many believe that using AI regularly would mean the pros outweighing the cons.
A survey conducted by the University of Melbourne and global professional services firm KPMG, which included 48,000 participants across 47 countries between November 2024 and January 2025, found a complacent attitude towards AI usage. According to the poll, 66 percent of the respondents relied on AI output without evaluating its accuracy, while 56 percent made mistakes at work using AI. Alarmingly, almost half of them uploaded sensitive company information onto public AI tools like ChatGPT, creating complex risks for organizations.
The study also revealed that while 66 percent were already using AI regularly, just 46 percent were willing to trust AI systems, indicating significant apprehension over its benefits and perceived risks. This skepticism should be addressed with a sound AI corporate governance framework, or else people could lose faith in this burgeoning technology. The absence of a governance method could lead to loss of trust and reputation, stifled innovation, impeded investment, and a talent drain.
Competitive Edge Through Good AI Governance
Good AI governance at the corporate level not only enhances the competitiveness of Hong Kong companies but also offers certainty at the government level. This, in turn, attracts market investment, boosts the city’s global reputation as a reliable AI hub, and ensures societal readiness for collective AI competitiveness.
Hong Kong’s common law system, expertise in financial regulation, and abundant cross-border knowledge exchange channels are strengths that can be leveraged to buttress AI governance. The city can make significant progress by introducing a comprehensive development blueprint, incorporating adequate technical expertise into regulatory bodies, enhancing public engagement in discussions about AI’s social and ethical aspects, and establishing a cross-border AI governance framework within the Guangdong-Hong Kong-Macao Greater Bay Area.
Key Areas for Improvement
Legal experts and business advisory leaders assert that Hong Kong must improve in four essential aspects: regulation, risk classification, privacy protection, and transparency.
Currently, the Special Administrative Region has no dedicated legislation on AI. Existing laws and regulations, particularly those relating to data protection, intellectual property, anti-discrimination, and cybersecurity, apply to AI applications by default. Concerns also arise regarding whether Hong Kong’s intellectual property laws adequately regulate AI usage, especially concerning copyright protection for AI-generated works.
To address these gaps, experts suggest that Hong Kong consider a stand-alone AI ordinance based on principles of accountability, traceability, fairness, ethical practice, privacy, safety, and human oversight. Such legislation should not only be people-centric to encourage AI development by reducing biases but also avoid stifling the growth of the AI industry and technology.
Establishing a Dedicated AI Regulatory Body
Currently, there is no dedicated government department in Hong Kong overseeing AI governance. The regulatory framework is instead embedded in sector-specific regulations enforced by multiple bodies, including the Digital Policy Office, the Office of the Privacy Commissioner for Personal Data, the Hong Kong Monetary Authority, and the Securities and Futures Commission. Effective governance will require coordination among these agencies to prevent regulatory gaps.
Experts emphasize the importance of forming a dedicated AI regulatory body comprising government regulators, industry leaders, academic researchers, cybersecurity professionals, public representatives, and legal experts. This body would be crucial for strengthening international alignment and enhancing the city’s status as a global AI hub.
Risk Classification and Privacy Protection
In improving AI governance, Hong Kong adopts a risk-based approach by requiring that the types and extent of risk mitigation measures be proportionate to the risk levels. With AI’s unlimited potential upside and downside, adequate risk controls are essential.
Privacy protection is another critical element. AI models often use publicly available texts, including personal data, which can conflict with data minimization principles. The overarching law governing data protection in Hong Kong is the Personal Data (Privacy) Ordinance, which mandates that enterprises and organizations erase personal data in an AI system when it is no longer needed for AI development or use.
In April 2025, the Digital Policy Office issued the Hong Kong Generative Artificial Intelligence Technical and Application Guideline to address risks such as data leakage, model bias, and misinformation. The Ethical Artificial Intelligence Framework introduced in 2023 requires government departments to incorporate ethical considerations when adopting AI and big data analysis.
International Engagement and Standardization
Internationally, there is still no unified standard for governing AI. Experts advocate for Hong Kong to proactively formulate global AI governance standards by increasing its engagement with international organizations and hosting AI conferences.
By leveraging its unique position, Hong Kong can contribute to international AI governance efforts, combining the advantages of Western technological frameworks with Chinese regulatory standards. This collaborative approach could help shape global AI standards and promote best practices.
In conclusion, strengthening AI governance in Hong Kong is essential for harnessing its potential safely and responsibly. With the right regulatory framework, the city can not only become a leader in AI development but also ensure that its adoption is beneficial for society as a whole.
