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The Hong Kong Productivity Council Digital Transformation (HKPC Digital Transformation) unveiled its findings from the “Hong Kong Enterprise Digitalisation Index Survey,” shedding light on the technological landscape within Hong Kong.
According to the survey, the overall enterprise digitalisation index for the region stands at 35.9, indicating a “Basic” level of digital adoption. This suggests that Hong Kong businesses recognise the importance of digitalisation and have begun incorporating digital technologies into certain operational aspects, albeit at an early stage.
The survey highlights a significant uptick in the use of artificial intelligence (AI) technology, with 30% of surveyed enterprises currently integrating AI into various facets of their operations. This number is projected to increase by approximately 20 percentage points, reaching nearly 50% in the next year, signifying the growing prominence of AI in operational processes.
The survey divides enterprises into categories, with large enterprises scoring 52.4, indicating a “Mature” level of digitalisation, surpassing Small and Medium Enterprises (SMEs) by 18.5 points, who scored 33.9. When exploring industry-specific digitalisation, the “Information and Communications” sector emerged as the leader with an index of 49.3 points, the only industry close to reaching the “Mature” level.
This was followed by the “Financing and Insurance” industry (40.0), “Accommodation and Food Services” (35.0), “Import/Export Trade and Wholesale” (33.9), and “Professional and Business Services” (33.0). The “Retail” industry had the lowest industry digitalisation index, scoring only 31.3. Within sub-indices, all categories remain at the “Basic” level, with “Process Digitalization and Automation” leading the pack at 41.2, surpassing the 40-point threshold. It was followed by “Digital Marketing and Customer Management” (38.9), “Culture and People” (34.3), and “Investment” (33.1). The lowest-scoring sub-index was “Use of Data,” which lagged behind at 32.0.
In terms of sales and marketing channels, the survey indicates that 90% of enterprises have initiated digital marketing and customer management strategies. More than half (54%) have established websites or social media platforms for these purposes, although comprehensive promotional strategies are still lacking.
Fewer than 10% of these businesses are utilising advanced tools like smart customer relationship management (CRM) systems for personalised real-time sales. In terms of store operations, over half (52%) are primarily reliant on manual labour or basic computer software for store management. Only around 10% of enterprises have adopted digital tools such as robots, QR code ordering, and self-checkout cashiers to enhance service quality, revealing substantial room for improvement.
The survey also uncovered that among enterprises investing in digitalisation, over 80% allocate 20% or less of their total investment toward digitalisation efforts, highlighting limited funding as a significant barrier to digital transformation. Apart from financial constraints, the survey identified a preference to maintain the status quo (46%) and difficulties in integrating new technologies into existing business operations or systems (25%) as other challenges faced by enterprises.
The General Manager of the Digital Transformation Division at HKPC emphasised the importance of comprehensive digital strategies and expressed optimism that more enterprises will reach the “Mature” level in the near future. The survey results highlighted the diverse challenges faced by enterprises of different sizes in their digital transformation journey, including financial constraints and integration difficulties.
Significantly, 65% and 41% of enterprises expressed their need for financial assistance and straightforward digital transformation solutions, respectively, to promote digitalisation in various operational processes. Furthermore, 36% of enterprises considered technical consultation and support essential for driving digitalisation.
As a dedicated partner for Hong Kong SMEs, HKPC has been actively supporting local enterprises through the “Digital DIY” (DDIY) Portal, offering a repository of over 250 digital solutions, 200 successful case studies across various industries, and more than 100 technology partners to facilitate seamless digital transformation. HKPC’s “SME One” program also contributes to the continuous development and competitiveness enhancement of Hong Kong SMEs and startups, fostering a more effective digital transformation for enterprises.
In a separate thematic survey focusing on AI tools, it was revealed that 43% of enterprises have adopted AI tools, including chatbots (20%), Optical Character Recognition (OCR) (19%), text generators (14%), image generators (12%), and speech-to-text tools (12%). Furthermore, these tools are anticipated to remain on an upward trajectory in the coming year, with various generative AI tools exceeding a growth rate of 40%.
Currently, only 30% of enterprises have integrated AI tools into their operational processes, such as marketing and customer services. However, this number is expected to rise to nearly 50% within the next year, indicating that AI tools are becoming increasingly mainstream in these domains.
The survey also delved into whether enterprises have established guidelines covering aspects such as personal data privacy and intellectual property when using AI tools. Over 60% of the enterprises employing AI tools have implemented relevant guidelines, demonstrating their awareness of potential issues and responsibilities associated with AI technology, and their commitment to managing its use responsibly.
Nevertheless, the lack of knowledge in establishing AI tool guidelines may be one of the factors impeding further AI adoption. To promote responsible AI adoption, enterprises should establish guidelines to ensure the ethical and appropriate use of AI tools among their employees.
Moreover, over 80% of the surveyed enterprises expressed satisfaction with the use of AI tools in enhancing productivity. However, nearly 40% believed that their employees lacked proficiency in using these tools effectively, highlighting the need for enhanced training programs to improve employee skills and maximise the benefits of AI tool adoption.
The “Reindustrialization and Technology Training Program” (RTTP) is a funding initiative under the “Technology Talent Scheme” offered by HKPC, providing over 150 approved programs each year to subsidise local enterprises on a 2:1 matching basis for advanced technology training. Effective training is anticipated to boost productivity and expedite digital transformation for enterprises.
A recent study by a US-based technology company revealed that early technology adopters are four times more likely to have high confidence in their future business success. Enterprise-grade solutions from the firm can address concerns regarding IT talent scarcity and knowledge gaps, making businesses more competitive and resilient in an evolving economic landscape.
To support digital transformation, HKPC offers the “Digital DIY” Portal with digital solutions and “SME One” program for SME development. Additionally, the Hong Kong branch of the tech company emphasises AI’s role in streamlining workflows.
OpenGov Asia reported earlier that The Hong Kong Science and Technology Parks Corporation (HKSTP) inaugurated the Hong Kong Science Park Shenzhen Branch, located in Futian. The Shenzhen Branch accommodated approximately 150 enterprises and facilitated the connection of innovation ecosystems between Hong Kong and Shenzhen. This initiative paved the way for technology ventures to access the Mainland market and expand globally.
This achievement aligned with the national goal of positioning Hong Kong as a global hub for innovation and technology (I&T). The Shenzhen Branch acted as a conduit linking the two cities, facilitating the exchange of cross-border talents, knowledge exchange, collaborative efforts, incubation support, and market access for both local and international corporations and technology startups.
