Following is the speech by the Financial Secretary, Mr Paul Chan, at the Inauguration Ceremony of Von Neumann Institute, the Hong Kong University of Science and Technology (HKUST) today (May 9):

Consul General (Consul General of Hungary in Hong Kong, Dr Pál Kertész), Harry (the Council Chairman of the HKUST, Professor Harry Shum), Nancy (the President of the HKUST, Professor Nancy Ip), Professor Jia (the Director of Von Neumann Institute, HKUST, Professor Jiaya Jia), Clara (the Chief Executive Officer of Hong Kong Investment Corporation, Ms Clara Chan), distinguished guests, ladies and gentlemen,

     Good morning.

     It is my great pleasure to join you all today to celebrate the opening of the HKUST Von Neumann Institute.

     This Institute is named after Hungarian scientist John von Neumann, whose remarkable contributions to mathematics, computer science and the architecture of modern computing systems have made him a most fitting inspiration for an institute dedicated to cutting-edge research in artificial intelligence (AI).

     The establishment of the Institute is the result of the strategic partnership agreement signed between the Hong Kong Investment Corporation (HKIC) and SmartMore last year. I am delighted to see that the vision has now become a reality.

     AI stands as a defining productive force of our time. It enhances productivity, transforms industrial production processes, and changes the way we live and do business. It enables governments and businesses to deliver smarter, efficient and more responsive services. 

     AI also holds immense potential in advancing sustainable development goals, such as combating climate change by revolutionising production models and management systems. For example, the International Energy Agency has recently estimated that the widespread application of AI tools could save global energy demand by more than the total energy consumption of Mexico by 2035.

     This Government believes in the immense potential of AI. That's why we have set out a clear vision to develop AI as a core industry in this year's Budget. It is also our goal to integrate AI across industries under an "AI+" strategy. To capture the opportunities ahead, we need to focus on five critical pillars: computing power, advanced algorithms, high-quality data, patient capital and, of course, talent.

     Achieving this vision requires close collaboration among the government, industry, academia, research and investment sectors. Together, we can build a vibrant AI ecosystem that supports technological breakthroughs and expedites real-world applications.

     There is much that the Institute can contribute to such collaboration. It brings together people and resources from multiple domains, including:

     First, HKUST, which ranks among the top 20 globally in data and artificial intelligence, and offers a wealth of academic expertise and strong foundational research.

     Second, SmartMore, which is a pioneer in the industrial application of AI. Professor Jia's unique blend of academic excellence and entrepreneurial experience will help us connect research with real-world applications.

     Third, the HKIC, which possesses an extensive network of companies and investors and provides the patient capital necessary to support a variety of projects in cutting-edge technologies and strategic industries, including hard tech, biotech and green tech.

     We hope that the Institute will become a platform that creates new pathways for application scenarios and commercialisation of AI, thereby contributing to Hong Kong's evolving innovation ecosystem and advancement in AI.

     Ladies and gentlemen, the promise of AI is boundless. However, there are concerns such as algorithmic biases, extensive data collection, privacy infringements and job displacement. These concerns are valid and warrant our attention. To maximise the benefits of AI, we must work together to enhance the transparency of AI processes, ensure the ethical and responsible use of the technology, and strengthen the AI-readiness of the community.

     We believe the Institute can play an instrumental role in these areas, by supporting talent development, promoting AI literacy, and contributing to a governance framework that ensures the society as a whole to benefit from AI. There is much to be gained from this endeavour.

     Ladies and gentlemen, to conclude, the establishment of the Institute is another important step in advancing Hong Kong's position as a global leader in AI innovation.

     Once again, I congratulate HKUST, HKIC, SmartMore, and all those involved in bringing this vision to life. I wish the Institute every success in its mission to shape the future of AI for the prosperity of Hong Kong, our country and beyond. Thank you very much.

Ends/Friday, May 9, 2025
Issued at HKT 14:19

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