Skill gaps and financial uncertainty hold back AI adoption for HK SMEs

While artificial intelligence continues to dominate global business discussions, nearly half of Hong Kong’s small and medium enterprises have yet to adopt the technology, with a lack of technical expertise cited as the primary roadblock. According to a recent survey commissioned by Dah Sing Bank, approximately 45% of local enterprises have not yet implemented AI within their operations.

The bank commissioned a survey in May 2026 through a major local media outlet, interviewing over 340 Hong Kong SMEs to understand how businesses are navigating current challenges and evolving strategies, while examining their plans and needs in areas such as AI adoption, Northern Metropolis opportunities and business upgrading.

The findings indicate a clear division between early adopters and those struggling to take the first step. Currently, 23% of Hong Kong SMEs have integrated AI or generative AI into their workflows, while a promising 32% plan to follow suit within the next one to two years.

However, overall usage remains at an early stage, with businesses heavily favoring low-barrier, accessible use cases over core infrastructure integration. Adopters are primarily focusing on marketing and content creation at 56% and customer service at 42%, followed by sales support at 35% and data analysis at 30%. In contrast, deeply integrated applications such as advanced process automation or workflow improvement remain limited to just 14% of respondents.

Among the 45% of SMEs that have yet to touch the technology, the barriers to entry are heavily structural. Over half of these non-adopters point to a lack of relevant knowledge or internal skills as their primary constraint.

Financial and strategic uncertainties also loom large, with 38% of respondents citing an unclear return on investment, 29% noting a lack of suitable use cases for their specific business models, and 24% stating they lack the time and resources to explore further. These compounding resource challenges suggest that gaps in capabilities and application planning remain major roadblocks to scaling up true innovation.

Despite these AI hurdles, local SMEs are successfully mature in other digital areas, embracing multi-channel business models to stay agile. Widespread digital integration is visible in social media marketing, electronic payment solutions, and e-commerce platforms, which have been adopted by 51%, 50%, and 43% of businesses respectively.

As AI tools gradually become more prevalent, workforce dynamics are expected to shift alongside them. Roughly a quarter of the surveyed businesses expect AI to gradually elevate employees into higher-value-added roles, while one in five anticipate a rising demand for new technological talent, underscoring a long-term transition toward knowledge-driven operating models.

Beyond technological upgrading, physical expansion is capturing the attention of the local business community. Nearly 70% of surveyed SMEs view the ongoing developments in the Northern Metropolis and the Hetao-Hong Kong Science Park as highly relevant to their commercial futures. Rather than looking to relocate their primary operations, most SMEs aim to participate as service providers and ecosystem partners.

Over half plan to provide retail products and services to future residents and workers in the district, while 44% intend to market specialized B2B solutions to companies in the area, and 36% aim to join construction and infrastructure-related supply chains. On the innovation front, 29% hope to collaborate directly with research institutions and tech firms, while a quarter plan to participate in upcoming pilot projects or proof-of-concept programmes.

Dah Sing Bank deputy chief executive, senior executive director and head of group personal banking, Phoebe Wong, said: "The Survey shows that Hong Kong SMEs are increasingly exploring AI applications and opportunities in the new economy. However, many businesses continue to face challenges in technology adoption and resource allocation. Dah Sing Bank has long been a trusted partner to SMEs on their transformation journey."

"Beyond providing flexible financing solutions, we are committed to offering market insights and a range of value-added services that help businesses strengthen their understanding of new technologies and market trends, equipping them with the relevant capabilities. By combining financial services with real-world support, we aim to empower SMEs to capture opportunities arising from AI and the Northern Metropolis, and to achieve sustainable growth.," she added.

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