Financial Secretary Paul Chan on Tuesday called for a multinational approach when it comes to the development of artificial intelligence, saying that no country or region should dominate technological innovation.

The remarks came as he delivered a keynote speech at the inaugural "AI Global Talents Connect", a forum linking leading scholars, students, entrepreneurs and the business community.

Addressing some 500 participants, Chan warned that despite the rapid development of the AI industry, risks remain over the responsible use of the transformative tech.

"For example, how can we prevent algorithm bias?" he asked. "How can we address concerns about job displacement? How can we ensure the safe and responsible development of AI, and that the red lines are not crossed?

"They demand collective wisdom and global co-operation.

"Given the geopolitical landscape, technological fragmentation is intensifying. Nevertheless, no single country or region can – or should – dominate technological innovation.

"More breakthroughs will emerge from open dialogue, knowledge exchange and cross-border collaboration among scientists, innovators, engineers, entrepreneurs and businesses. In this context, building an open, collaborative and inclusive community for AI is vital."

Chan again stressed that the SAR is committed to becoming a key global centre in developing the core tech, aiming to set up an AI research and development institution by next year.

The city's vast funding options and data exchange advantage, he added, would also assist Hong Kong in serving as a testing field for various AI applications and facilitating data convergence between the mainland and the world.

"Under our 'One Country, Two Systems' framework, Hong Kong guarantees the free flow of information and data," he said.

"At the same time, we will introduce mechanisms for cross-boundary flow of data from the Chinese mainland to Hong Kong for research and development purposes, under clear safeguards and robust data-security protocols," he added.

Clara Chan, chief executive of Hong Kong Investment Corporation (HKIC), which manages some HK$62 billion of government funds, said the company has so far invested in more than 120 projects, with an emphasis on the tech sector.

"The HKIC has been investing in a broad array of AI companies, including AI large language model, AI drug discovery, embodied AI, AI cloud computing, to name but a few," she said.

"We think Hong Kong is really well positioned to play a leading role in facilitating AI investment and development globally, with our roles as a 'super connector' and 'super value-adder'."