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AI and Northern Metropolis drive transformation plans among Hong Kong SMEs

AI and Northern Metropolis drive transformation plans among Hong Kong SMEs

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While more than half of Hong Kong SMEs have adopted or plan to adopt AI, capability gaps, resource constraints, and uncertain returns remain key barriers to wider implementation.

Hong Kong’s small and medium enterprises (SMEs) are accelerating their digital and business transformation efforts and actively exploring opportunities linked to artificial intelligence (AI) and the Northern Metropolis, according to the latest SME Survey commissioned by Dah Sing Bank.

The survey, which polled more than 340 Hong Kong SMEs in May 2026, found that 23% have already adopted AI or generative AI (GenAI) in their operations, while a further 32% plan to do so within the next one to two years.

Among SMEs already using AI, the most common applications include marketing and content creation (56%), customer service (42%), sales support (35%), and data analysis (30%). However, adoption remains limited in more advanced areas such as process automation or workflow improvement (14%), suggesting that overall AI usage among SMEs is still at an early stage and has yet to be fully integrated into core business operations.

The survey also highlighted significant barriers to advance AI adoption. Around 45% of SMEs have yet to implement AI technologies, with more than half (57%) citing a lack of relevant knowledge or skills as a key barrier.

Unclear returns on investment were identified by 38% of respondents, while 29% said they lacked suitable use cases and 24% pointed to insufficient time and resources to explore further. The findings indicated that capability gaps, resource allocation challenges, and application planning remain major constraints on SMEs’ ability to scale transformation initiatives.

At the same time, SMEs are continuing to digitalise their operations, with widespread adoption of social media marketing (51%), electronic payment solutions (50%), and e-commerce platforms (43%).

As AI adoption expands, workforce requirements are also evolving. About one-quarter of respondents expect AI to shift employees towards higher value-added roles, while around one in five anticipate increased demand for new skills and talent.

Regarding the Northern Metropolis and the Hetao-Hong Kong Science Park, nearly 70% of respondents said these developments are relevant to their future business plans. Many SMEs see opportunities within the emerging ecosystem, primarily as service providers and supporting partners.

More than half (51%) plan to provide products and services to future residents, businesses, and workers in the district (51%). Others aim to offer specialised services or solutions to companies in the area (44%), take part in construction and infrastructure-related supply chains (36%), collaborate with research institutions or technology firms (29%), and participate in pilot projects or proof-of-concept programmes (25%).


ALSO READ: Hong Kong unveils first Five-Year Plan and Policy Address, prioritising AI, talent, and population development

Lead imaga / Dah Sing Bank

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