July 1, 2026, (Inside AI) — Hong Kong’s top technology official issued a stark warning today about artificial intelligence, calling it a force that will surpass all past industrial upheavals and fundamentally reshape the city’s workforce.
Secretary for Innovation, Technology and Industry Sun Dong said the government is racing to prepare for this transformation through a series of ambitious AI initiatives. His remarks came on the 29th anniversary of Hong Kong’s return to Chinese rule.
“The impact of this AI wave on Hong Kong and its entire society will, I believe, exceed all previous industrial revolutions,” Sun told the South China Morning Post in an interview.
The secretary stressed that while AI will create many new opportunities, it will also cause traditional sectors to decline—an outcome he described as inevitable. He pointed to employment struggles among local graduates as part of a global trend, noting that even students from elite U.S. universities are feeling the pressure.
Sun’s comments underscore the urgency felt by governments worldwide as generative AI and automation threaten to displace workers across industries. Hong Kong, a global financial hub with a services-heavy economy, faces particular exposure to AI-driven disruption.
A Three-Pronged Strategy to Ride the AI Wave
The Innovation and Technology Bureau is betting on a three-part plan to turn the threat into an advantage. First, the city is developing its own large language models (LLMs) tailored to local needs and languages. These proprietary models aim to reduce reliance on foreign tech and ensure cultural and regulatory alignment.
Second, the government is rolling out AI projects for public use, though details on specific applications remain limited. Such projects could range from smart city services to AI-powered administrative tools.
Third, a HK$50 million (US$6.37 million) universal education programme will train citizens across all ages and professions. The initiative seeks to build AI literacy and practical skills, from basic awareness to advanced technical capabilities.
Sun framed these moves as proactive steps to harness the “paradigm shift” rather than resist it. “As a new wave of development unfolds, many new opportunities will emerge. At the same time, some traditional sectors will gradually decline—this is an inevitable outcome,” he said.
Global Echoes and Local Realities
Sun’s warning echoes concerns raised by international bodies. The International Monetary Fund recently estimated that AI could affect nearly 40% of jobs globally, with advanced economies facing higher risks. In Hong Kong, sectors like finance, logistics, and professional services—pillars of the local economy—are already experimenting with AI automation.
However, some analysts argue that Hong Kong’s strategy lacks concrete timelines and scale. The HK$50 million education fund, while significant, may be modest compared to the billions invested by mainland China or the U.S. in AI workforce development.
Others question whether developing local LLMs is the best use of resources, given the dominance of models from OpenAI, Google, and Chinese tech giants. Sun’s bureau has not disclosed partnerships or technical benchmarks for these models.
Still, the focus on homegrown AI aligns with Beijing’s push for technological self-reliance. Hong Kong’s unique position as a special administrative region allows it to serve as a bridge between mainland China and global markets, potentially giving its AI efforts strategic value.
As the anniversary highlights Hong Kong’s integration with China, the tech chief’s message is clear: the city must adapt quickly or risk being left behind in what he calls the “greatest industrial revolution.”
