The government on Friday said it hopes a new public body tasked with turning AI research outcomes into commercial applications could bring in some HK$300 million by the third year of its establishment and achieve self-financing down the line.

This came as the Legislative Council's finance committee approved HK$1 billion to set up the AI Research and Development Institute that was first announced in the government budget in February.

Officials project that the body – to be formed next year – would spend all of its initial funding within five years.

Commissioner for Digital Policy Tony Wong said the institute could generate income through commercialising mid- to down-stream research projects.

"It could be AI projects to support public administration, patent registration, including profit sharing with the market," he told lawmakers.

"The institute will also be able to provide consultant advisory and business-matching services for the trade. It may also be able to perform assessment and cybersecurity trials for the private sector."

Wong added that the plan is to have a 50-strong staff – with its chief executive earning more than HK$4 million a year.

Around a quarter of the workers would be researchers, each of whom would earn an annual salary of more than HK$1.1 million.

Secretary for Innovation, Technology and Industry Sun Dong said the institute is set to become a leader in Hong Kong's AI development, coordinating and promoting local projects in the field.

He stressed the institute has the public mission of getting more sectors in society, such as schools, to use AI.