Hong Kong can meet Shenzhen’s challenge by embracing the big data revolution

Hong Kong is struggling to keep up with its neighbour and other cities that are competing for tech talent and firms with subsidies and other favourable policies
As we push out into a different Greater Bay Area, we must learn to embrace change and rewire our mindset for a world driven by AI and big data

Adam Au

Published: 6:15am, 21 Oct 2020

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China’s recent five-year development plan to designate Shenzhen as the engine behind tech innovation in the Greater Bay Area came as no surprise. China’s digital transformation was well under way long before the pandemic amid its expansive adoption of mobile technologies and artificial intelligence applications.

This has created a wealth of new data about the world, providing a treasure trove of citizens’ daily habits, including shopping and travelling predilections. In terms of data quantity, China vastly outpaces what Western companies such as Facebook and Google can amass from sporadic online searches, a few “likes” or browsing history.

Efforts to expand data collection are in line with China’s desire to establish a nationwide medical database, which could help inform decisions should another health care crisis arise. Despite the damage it has inflicted upon this world, the Covid-19 pandemic is one of the main drivers behind the government‘s commitment to expand its search net.

When combing through extensive data using AI deep-learning algorithms, companies and governments can customise solutions to address urgent needs, ranging from city planning to efficient deployment of health care.

Inspired perhaps by the strides it has made, the Shenzhen government is now tasked with leading China’s socialist and technological modernisation. Will Shenzhen’s elevated role as China’s tech pioneer help or hurt Hong Kong?

This concern must not be trivialised. The roles of these neighbouring cities have profoundly changed in the past two decades. Hong Kong’s delayed technological development is a case of missed opportunity. As early as 2004, Cyberport was a government initiative to encourage innovative ventures to move Hong Kong away from being too reliant on industries that had been central to its economy since the 1980s.

05:25

Hong Kong's competitive edge questioned as Xi says Shenzhen is engine of China’s Greater Bay Area

Although the jury is still out on a tech overhaul, Hong Kong is fighting to compete. To put it in context, Hong Kong’s GDP was almost three times that of Shenzhen’s in 2004. Now, our neighbour has caught up.

Shenzhen is not Hong Kong’s only competitor. Many other cities are responding to the digital upsurge as if they have just heard the starting pistol of a race, one-upping each other to attract companies with favourable subsidies and policies. In contrast, Hong Kong has lost ground by standing still. However, it is not all doom and gloom if we can embrace the discomfort induced by disruptive technology.

Creating an AI superpower requires the right human capital, not just an abundance of data and an unbending political will. Well-trained AI scientists, entrepreneurs and experienced professionals are all indispensable to the efficacy of AI adaptation.

Eliminating noise from the mass of available data and extracting useful information requires advanced analytics. Yet, it is up to the industry experts to perform relevancy vetting and tailor their eventual strategies for commercial applications.

In medicine, a broader application of AI can revamp the diagnosis process for a wide variety of diseases. Currently, advanced medical knowledge is concentrated among trained physicians. It takes as long as 10 to 15 years to train a specialist in a relatively narrow medical field.

In contrast, AI deep learning can spot correlations and make predictions while minimising fallacies and biases to which humans are susceptible. Given enough training data, an AI-powered diagnostic tool can empower professionals and supplement their expertise with better accuracy and lower costs.

02:01

Xi Jinping vows to promote Shenzhen as global trade hub during 40th anniversary visit

For all its magic, AI can never fully displace a human doctor or lawyer. In the past, professional knowledge had an aura of inaccessibility. Now, though, the hyperconnectivity in modern society facilitates information exchange and democratises knowledge access.

When combined with AI-enabled operation management, industry experts can focus on more human tasks such as making patients or clients feel cared for and providing personalised services to those previously denied access.

Hong Kong is known for its professional services. Despite possessing a stockpile of valuable assets, major Chinese cities still lag behind Hong Kong in meeting the most stringent professional standards. Looking to the future, Greater Bay Area companies will continue seeking out Hong Kong’s professional service providers to optimise their operations.

The most successful tech companies use rapid digital information transmission to build applications in the real world that touch every aspect of our lives. However, the true riches of the new tech world have yet to be fully realised. Every activity in the digital universe adds new layers to the data landscape that coordinates real-life consumer patterns.

Subject to privacy laws, digital information access can provide real-time insights for businesses. Hong Kong has a vast professional network to support AI experts serving the Greater Bay Area. More data leads to better services, which in turn increases users who generate more data that further improves service quality. It is a self-reinforcing loop that runs on accumulated data, political sponsorship, start-up grit and market-driven professionalism.

In the past, unique products and expertise were sufficient to rein in market monopolies. The digital world blurs the line between the online and offline worlds. Going forward, competition will be among those who can monetise data and rapidly roll out digitised goods and services that fit changing consumer needs. As we push out into a different Greater Bay Area, we must learn to embrace change and rewire our mindset for a world driven by AI and data.

Adam Au is a Hong Kong-based entrepreneur and senior lawyer who is passionate about education, the future of work and the intersection of law, business and technology

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