John C. Tsang, a former financial secretary in the Hong Kong SAR government, is the founder of the non-profit initiative Esperanza.
Hong Kong is trapped in a structural economic paradox that threatens both its long-term competitiveness and social stability. Organisations are paralysed by the urgent need for artificial intelligence (AI) transformation, complaining day in and day out that they lack technological talent.
An International Data Corporation (IDC) study last year revealed that 55 per cent of Hong Kong companies face significant challenges in implementing AI – higher than the global average of 48 per cent. Shockingly, 43 per cent admit completely lacking AI expertise or skills – despite being willing to pay premium rates to attract talent.
The irony would be amusing if it were not so damaging. While executives bemoan a talent drought, an incredibly bright, AI-native generation is practically starving for employment opportunities. Entry-level job vacancies for graduates have plummeted by 60 per cent over the past three years as AI, compounded by the city’s economic restructuring, reshapes labour demand.
Let’s be clear: this decline is not a temporary, cyclical blip. The 2026 PwC Global AI Jobs Barometer found that standard entry-level roles have shrunk by 10 per cent globally since 2019. Roles traditionally considered the stepping stones to a professional career, such as junior administrative and basic IT positions, are being swiftly automated out of existence.
This trend has triggered an existential threat to our long-term talent pipeline. In the IDC study, 74 per cent of Hong Kong companies say shrinking entry-level positions have made it increasingly difficult to hire and train future leaders. But whose fault is that?
Organisations can only achieve real productivity gains when AI is deeply integrated into their daily workflows. But they are stuck because senior executives frequently lack the basic tech fluency required to safely integrate AI into daily corporate operations. Instead of adapting, management relies on a legacy hiring mindset that blindly filters out fresh graduates for lacking “relevant prior experience”.