The Chief Executive delivered the 2026 Policy Address on 16 September 2026, setting out measures covering artificial intelligence, data infrastructure and digital adoption across industries. For businesses considering new software, system integration or AI applications, these measures provide useful context for planning future projects.
This article brings together the technology measures relevant to business planning across four areas: digital public services, SME support, technology infrastructure and industry applications. Businesses should assess each initiative against its implementation timetable, eligibility requirements and published application rules.
1. AI in city management and public services
The Government’s proposed AI applications involve sharing data across departments, identifying risks and connecting existing systems.
Building the AI City Brain
The Government will study and develop an integrated city-management system known as the AI City Brain. It will connect relevant departmental data on public works, the environment, transport and emergency response.
The first phase will incorporate the digital infrastructure of the Security Bureau’s Emergency Monitoring and Support Centre. AI analysis will provide risk warnings and trend forecasts to support co-ordination between departments.
AI projects and departmental systems
The Government has facilitated and implemented 30 AI projects. Examples include the Transport Department’s work against unfair online queuing, the Environmental Protection Department’s use of AI and LiDAR to halve the time required for environmental impact assessment procedures, and the Food and Environmental Hygiene Department’s handling of refuse complaints.
The Development Bureau will extend SmartAERO, its platform for co-ordinating drone operations across departments, to strategic areas throughout Hong Kong. AI data analysis will support emergency response and enforcement against unauthorised building works. The Digital Policy Office will also use AI to identify recurring issues in cases received by 1823, helping departments act earlier.
AI governance and agent safety
The Government is studying legislation to address AI-enabled crime and deepfakes. It also plans to issue safety-management guidelines for AI agents in 2027, in collaboration with the Hong Kong Artificial Intelligence Research and Development Institute (AIRDI), for use across society.
Businesses adopting AI agents should plan data-access permissions, human review and activity records alongside the application itself, and monitor the detailed requirements when the guidelines are released.
2. SME digitalisation support and data-based financing
DTSPP and BUD Fund enhancements
The Government will enhance the Digital Transformation Support Pilot Programme (DTSPP), using matching subsidies to support more SMEs in adopting AI and cybersecurity solutions. The Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) will offer more targeted support for projects with AI elements and extend its geographical coverage to Uzbekistan and Qatar.
Businesses can begin by documenting their workflows, system limitations and project objectives, then assess eligibility and eligible expenditure against the schemes’ formal rules.
Expanding the Digital DIY Portal
The Hong Kong Productivity Council will expand its Digital DIY Portal to incorporate AI-assisted advisory services for SMEs and help businesses assess and address cybersecurity risks.
Connecting trade data with CDI
The Trade Single Window will connect to the Hong Kong Monetary Authority’s Commercial Data Interchange (CDI) in mid-2027, allowing banks to draw on trade data when assessing financing applications. The Government will also explore automated payment processes and connections with ASEAN electronic port systems to make relevant data easier for banks to access.
The Policy Address reports that CDI has reduced companies’ borrowing costs by an average of 36 basis points.
3. Computing infrastructure, the low-altitude economy and fintech
Sandy Ridge Data Facility Cluster
Construction of the Sandy Ridge Data Facility Cluster has begun, with cumulative investment expected to reach at least HK$23.8 billion. The project is expected to provide 180,000 petaFLOPS by 2032. The Policy Address describes this as 36 times Hong Kong’s current computing capacity.
Funding for AI research
The Government will inject HK$1 billion into the Artificial Intelligence Subsidy Scheme to support AIRDI’s use of high-performance computing for frontier research.
Low-altitude applications and traffic management
The Government will advance pilot projects under the low-altitude economy’s Regulatory Sandbox X, including demonstrations of unmanned aircraft traffic-management systems. It will also begin developing the Smart Low-altitude Traffic Management System, with progressive implementation targeted from 2028. These measures support its aim of developing Hong Kong into an Asia-Pacific hub for innovative low-altitude applications.
Web3 and asset tokenisation
The HKMA plans to complete arrangements for central bank digital currency (CBDC) settlement and round-the-clock operations under EnsembleTX around the end of 2026, while exploring applications of tokenised deposits. Hong Kong Exchanges and Clearing is also developing a blockchain-supported platform for multi-asset tokenisation.
4. Technology applications across industries
Property and construction
The Hong Kong Housing Authority will adopt an Artificial Intelligence of Things (AIoT) system for logistics and transport in tenders for new projects, aiming to improve the transport efficiency and quality of Modular Integrated Construction (MiC) modules.
It will also identify more projects for the Building Information Modelling (BIM)-enabled Systematic Approach to Foundation Design. The Policy Address reports average savings of approximately HK$1 million per domestic block.
The Government has injected HK$1 billion into the Construction Innovation and Technology Fund. Together with HK$400 million from the Construction Industry Council, the combined HK$1.4 billion will support wider adoption of technologies including AI and digital construction tools.
Smart mobility and transport data
The Transport Department is developing a ride-hailing vehicle data-management system to monitor compliance and safeguard data security under the regulatory regime for ride-hailing services.
It will also establish a one-stop co-ordination office to expedite applications for automated parking systems from operators of short-term tenancy car parks.
Green technology and infrastructure
The Government will work with universities and businesses to develop an Intelligent Water Network Closed-loop Management Chain, using AI for predictive maintenance. The Underground Utilities Information System and three-dimensional spatial analysis will also support more efficient inspection and maintenance.
The smart recycling network will expand progressively to around 3,000 sets of smart recycling bins from mid-2027. The number of food-waste smart recycling bins across Hong Kong is planned to reach approximately 2,500 in the first quarter of 2028.
Healthcare and elderly care
The Government will encourage more private healthcare providers to contribute electronic health records, advance cross-boundary sharing of medical records, and enhance the nine core functions of eHealth+, including functions relating to medication and medical certificates.
It will earmark HK$100 million for a Gerontechnology Promotion Scheme to encourage local technology businesses to develop elderly-care products and solutions. The Housing Authority will also pilot suitable household gerontechnology equipment for elderly people living alone and all-elderly households in selected public housing estates.
Legal services and security
The Department of Justice will introduce a short-term funding scheme to encourage wider use of LawTech, including AI, in the legal sector.
The 999 emergency call service will add real-time audio, image and video capabilities and use new technology to triage incoming calls. The Customs and Excise Department will consolidate existing systems into an anti-money laundering big-data platform to strengthen analysis and its response to cross-boundary money laundering.
Planning the next step
These measures span AI infrastructure, public services and industry applications. Businesses can begin by identifying the operational process they most need to improve, the data it requires and the systems it must connect to. Ongoing management and support should form part of the project scope before assessing suitable funding schemes.
technine.io provides software development, web and application development, and system integration services. If you are considering AI adoption, connecting existing systems or planning a digitalisation project, contact us with your current workflow, integration requirements and proposed timetable. We can help clarify the scope and technical risks and identify a practical implementation approach.