An Oscar-winning visual effects production company, which produced visual effects for Hollywood blockbuster films like “Titanic” and “Spider-Man: No Way Home”, is establishing an AI research centre at the Hong Kong Science Park (HKSP).

Digital Domain has previously won 11 Academy Awards, including three "Best Visual Effects", and eight "Scientific and Technical Achievement" Oscars.

Speaking at the centre's establishment ceremony on Wednesday, Secretary for Innovation, Technology and Industry Sun Dong hailed the new partnership between the HKSP and Digital Domain as a "significant milestone in digital entertainment" and a huge boost to the SAR's creative sector.

The IT minister noted that AI has transformed the way movies, animations, and visual effects were made, and believes the partnership will revolutionise the SAR's entertainment industry.

"Digital Domain is a testament to this, with its groundbreaking use of AI technology as a tool for better storytelling and immersion. By harnessing the power of AI, we can create truly exceptional products that push the boundaries of imagination," he said.

"This is the future we envision for the film and entertainment industry, where humans and AI work hand-in-hand to create unforgettable experiences."

The technology minister also interacted with a lifelike AI-generated image of the late singer Teresa Teng during a demonstration session.

Sun said the SAR government is well-prepared for the opportunities and challenges arising from AI and will offer all sorts of support to develop the technology in the city.

Meanwhile, Digital Domain’s CEO Daniel Seah said he dreams of building a “Hollywood of China” in Hong Kong.

“I believe we can help the Hong Kong film market...over the past 30 years we have accumulated lots of data and digital assets. All these will be used in machine learning and deep learning in the research centre at Science Park,” he said.

“We have the ability and resources to bring back amazing films here.”