Chief Executive John Lee on Wednesday said he will set up an "AI Efficacy Enhancement Team" to boost the efficiency of government work, as he also vowed to step up efforts to make artificial intelligence a key industry for Hong Kong’s future development.

Delivering his fourth Policy Address, Lee said the team will be led by the deputy chief secretary and will include the secretary for innovation, technology and industry, the commissioner for digital policy, as well as a representative from the private sector.

The CE said the team will work closely with government departments to understand where reforms are needed, with priority given to those departments with the most interactions with the public.

Lee said departments will be encouraged to actively seek help from the team to improve their efficiency.

The government aims to formulate the work plan and timetable of the AI Efficacy Enhancement Team in the fourth quarter of 2025 and implement relevant projects next year.

The use of AI tools will also be promoted in various government services to bring convenience to the public and “create greater value to society”, the CE said.

This includes using AI to help people make non-emergency reports to the police, expedite the vetting and approval of transport licences, and diverting traffic flow based on real-time data.

The AI tools are expected to be rolled out next year.

Lee said Hong Kong is poised to become a global hub for AI development, adding that AI is a major driving force behind industrial transformation and technological innovation.

He said the government plans to support the widespread use of AI across different sectors.

To help universities attract top international AI researchers, a HK$3 billion funding scheme on talent recruitment will soon invite applications.

Lee noted that HK$1 billion was earlier set aside for the setting-up of a "Hong Kong AI Research and Development Institute".

The government will also put up for tender a site of about 10 hectares at Sandy Ridge in North District for the development of advanced computing power facilities.

Meanwhile, the Hong Kong Monetary Authority will expand AI applications to more financial institutions with the launch of the second cohort of the AI Sandbox initiative, Lee said.

In addition, the Development Bureau will pay for AI to be adopted in private construction projects, while the Department of Justice will set up an inter-departmental working group to review any legislation revisions needed to support the broader use of AI.