Hong Kong can’t afford to lose out on generative AI

Some of the world’s leading tech companies such as OpenAI and Google have decided to exclude Hong Kong from the list of markets where their advanced, generative artificial intelligence (AI) services like ChatGPT are available.

Such decisions were made by those companies themselves rather than the Hong Kong government. Unfortunately, the restrictions may be the result of a lack of communication, and misunderstandings between the private sector and the Hong Kong government.

OpenAI launched ChatGPT less than two years ago, just as generative AI was arguably becoming the hottest technology in demand, slated to impact many industries and people’s lives. Apart from Hong Kong, there are a handful of other markets where OpenAI has restricted its service, including mainland China, Iran and North Korea.

It is understandable why foreign AI services such as ChatGPT would not be available in the Chinese mainland, given Beijing’s well-known strict control of the internet. Global social media platforms like Facebook, Instagram and WhatsApp, just to name a few, have all been officially banned in mainland China for years.

But in one part of China, Hong Kong, we do enjoy the “one country, two systems” designed by the late paramount leader Deng Xiaoping in anticipation of the handover of Hong Kong from the United Kingdom to China, which finally happened in 1997. It is because of one country, two systems that Hong Kong people have virtually free access to the internet, a sharp contrast to the rest of China.

The free flow of data and information is critically important for Hong Kong, one of the world’s leading financial hubs on a par with New York, London and Singapore, where generative AI services such as ChatGPT or Google’s Gemini have become increasingly integrated into the operations of many businesses and people’s daily lives over the past two years.

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How a Hong Kong school embraces ChatGPT in the classroom

How a Hong Kong school embraces ChatGPT in the classroom

Big banks like JPMorgan and Citigroup have started to use generative AI to help them trade more efficiently and comb through regulatory proposals. If Hong Kong is isolated in the new era of generative AI due to a lack of access, it will have long-term implications for the city’s status as a leading financial centre.

On the one hand, Hong Kong officials do recognise the importance of generative AI, which is why Secretary for Innovation, Technology and Industry Sun Dong recently revealed that a ChatGPT-style tool has been locally developed to help support the daily work of government officers.

This is a promising development, even though it may be challenging for the Hong Kong government to annually invest the sums of money needed to match the advanced level of generative AI developments achieved by OpenAI and Google. Hong Kong should welcome locally developed AI services as a diversity of tools can also promote more innovation in the industry.

However, on the other hand, our government should also be more proactive and reach out to companies such as OpenAI and Google to exchange more views on how Hong Kong can be included in their services, which are available to most of the rest of the world.

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How does China’s AI stack up against ChatGPT?

How does China’s AI stack up against ChatGPT?

If there were misunderstandings about Hong Kong’s laws and regulations, it should be the government’s job to clarify them, as well as tell a better “Hong Kong story”. Beijing would surely support such an effort.

Hong Kong users have long enjoyed free access to international media outlets and social media platforms. That’s how Hong Kong stands out when we think about what one country, two systems means for our daily lives.

As we enter a new era of generative AI, Hong Kong should not be left out. Furthermore, it is in Beijing’s interests to see that Hong Kong can continue to grow within the framework of one country, two systems when we engage with the rest of the world. Global generative AI developments can benefit economic development in Hong Kong, which is a top priority, as expressed by the central government.

Meanwhile, we should also welcome Chinese AI developers such as Alibaba, Baidu and Tencent including the Hong Kong market in their product trials and launches. These days, many Hongkongers use both Meta’s real-time messaging app, WhatsApp, and Tencent’s WeChat for daily communications. WhatsApp may be more popular for contacts with friends and colleagues living abroad, while WeChat is the must-have choice for connecting with contacts in mainland China.

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A person uses an iPhone next to an Apple logo in Grand Central Terminal in New York City on April 14, 2023. Photo: Reuters

Having both OpenAI’s ChatGPT and Baidu’s Ernie Bot could serve the same purpose. The worst scenario is that Hong Kong ends up outside the service scope of OpenAI’s ChatGPT as well as Baidu’s Ernie Bot. After all, Baidu and its peers might also opt to focus more on mainland China’s much bigger market.

Apple is expected to launch its new iPhone this autumn, as well as the integration of AI in its operating system for the public. Hong Kong may face more such dilemmas if future iPhones sold in the city cannot be supported by OpenAI or Baidu. Then, Hongkongers will be jealous of how residents of other financial centres, such as Singapore, can access a greater diversity of AI services.

In the long run, Hong Kong’s access, or lack thereof, to these services will be a serious issue for our competitiveness and relevance to the world.

George Chen is managing director and co-chair of digital practice at The Asia Group, a business and policy consulting firm. He is a former head of public policy for Greater China at Meta/Facebook

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