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The most notable change in Hong Kong’s artificial intelligence scene over the past couple of years is the shift from just observing and discussing the technology to actually implementing it on a large scale, according to the vice president of international business at Alibaba Cloud Intelligence Group.
Decision-making in companies around AI is fundamentally shifting, said Ethan Yuan, who also serves as the regional general manager for Hong Kong and Macao. Before the boom of large language models in 2023, organizations mainly focused on digital transformation goals. Now, the emphasis has moved toward AI investments aimed at creating new revenue streams.
Once companies see positive returns on their AI investments, there’s often no limit to how much they’ll spend, Yuan explained. He expects enterprise AI investments to pick up significantly over the next five to ten years.
This trend mirrors the broader growth of the global cloud computing market, where the Infrastructure-as-a-Service segment grew 24% last year, generating an additional $45 billion in revenue. AI-related workloads were the primary growth driver, according to a recent report by Gartner. Alibaba Cloud’s global market share increased to 7.7%, with more than 22.5% of the Asia-Pacific market, maintaining its position as the top regional provider.
Hong Kong’s role in the AI ecosystem is becoming more defined. It acts as a vital hub linking mainland China’s innovation capabilities with global use cases. The city’s diverse international business environment and close ties to the industrial supply chains in the Guangdong-Hong Kong-Macao Greater Bay Area make it an ideal base for mainland companies expanding abroad, as well as for foreign firms entering the Chinese market.
The client base of Alibaba Cloud in the region reflects this, including local companies, mainland firms going global, and international businesses entering China, Yuan noted. Cross-border operations are now the fastest-growing segment, with mainland companies expanding overseas leading the way.
International clients are becoming more receptive to Chinese technology platforms. Yuan mentioned that many previously didn’t consider Chinese platforms first, but now their growth rates with these providers are impressive. They’re increasingly adopting technologies from Chinese companies.
While global giants like Amazon Web Services and Microsoft Azure dominate the cloud market, competition is heating up in regional markets. Alibaba Cloud stands out because of its ability to offer cross-border services and a comprehensive tech stack, allowing businesses to deploy solutions while complying with local regulations in different markets, Yuan said.
“Companies tend to select the facilities nearest to their customers—especially local data centers—for cloud and AI deployment, ensuring full compliance,” he added.
Regarding employment, Yuan believes AI is more likely to reshape skills rather than eliminate jobs. He cited an example from Alibaba where seven engineers used AI-assisted programming tools over five days to build a platform that enables non-technical users to develop applications. This project transformed engineers from roles focused solely on front-end, middleware, or database tasks into full-stack developers capable of independently delivering complete products.
This development creates new revenue opportunities and innovative scenarios, Yuan said. To speed up AI adoption, Alibaba Cloud recently introduced initiatives in Hong Kong such as the Million Token Program and a localized AI development platform. The first program provides new businesses and developers with up to one million free model API tokens over three months, significantly lowering barriers to AI use.
“The goal of both programs is to make cloud computing and AI more accessible for Hong Kong companies and developers and to promote the growth of the local innovation ecosystem,” he emphasized.
AI’s application has expanded beyond the internet sector into finance, retail, logistics, and public services. Yuan noted that adoption is no longer limited to tech firms; traditional industries are increasingly incorporating AI for customer service, knowledge management, and automating processes.
AI is poised to become a fundamental capability for Hong Kong businesses, further advancing the city’s role in setting international standards, industrial applications, and regional cooperation. “Hong Kong’s future isn’t just about using AI—it has the potential to become a city that truly integrates AI innovation, industrial application, and international connectivity,” Yuan concluded.
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