Technology and innovation chief Sun Dong on Sunday said policies related to artificial intelligence (AI) mentioned in last month's budget show the government’s commitment to high-quality development.

Financial Secretary Paul Chan described AI as a “core industry” as he delivered the budget for the 2025-26 financial year, and said the government would support research and development efforts in the city.

He also announced that HK$1 billion would be earmarked for the establishment of the Hong Kong AI Research and Development Institute.

Speaking on a Commercial Radio programme, Sun said the founding of the institute could benefit society in many ways, including applications in areas like government services, law, finance, healthcare and education.

"I think that with AI advancing to its current level, every country and region needs to achieve breakthroughs in important areas, particularly in applications. Of course this involves some free exploration. Therefore while we want to encourage different research teams to explore AI freely, we also need to combine our limited resources to focus on development. That’s part of why we’re establishing the institute," he said.

The technology chief also noted there were 4,700 start-ups in the city at the end of last year, describing them as important pillars for Hong Kong’s future development.

“This is four times what it was before the pandemic and over a 10 percent increase from the year before. The number is expected to go up again this year,” he said

“Start-ups are looking at Hong Kong's innovation scene, government policies, the overall resources availability, and whether the business environment is good. When start-ups come here, talent will follow."

Hong Kong has to have its own “star start-up” as it works its way to become an international I&T centre, the minister said.

Sun will lead a delegation, including representatives from the I&T sector, to Spain and Portugal on Sunday evening, to strengthen ties and cooperation between Hong Kong and the two countries in the field.