Advertisement
Opinion | Hong Kong should focus on finding compelling uses for generative AI
Foundational tech is important but what people need and want will dictate the success or failure of generative AI and the return on investment
Reading Time:4 minutes
Why you can trust SCMP
2
Generative artificial intelligence (AI) has charmed the world. Its ability to digest and produce content such as text, images and videos presents opportunities for any industry that needs to communicate – from medicine, law and finance to the creative arts, architecture and biochemical sciences.
Advertisement
US research suggests large language models (LLM) could affect at least 10 per cent of tasks for most of the workforce and at least 50 per cent for some. Accordingly, LLM and generative AI are tipped to become general purpose technologies, which have a broad and transformative impact on the economy and society.
One key feature of general purpose technology is that it attracts investment. According to Stanford University’s 2024 AI Index Report, private investment in generative AI last year was nearly nine times that in 2022, and 30 times that in 2019.
While this investment is primarily led by the United States, China has invested more than US$600 million, close to the combined investment of the European Union and United Kingdom. Most of this investment went to AI infrastructure and natural language processing, both of which form the foundation for generative AI. Over the five years to 2027, the International Data Corporation expects generative AI investment in China to grow by a compound annual rate of 86.2 per cent.
Meanwhile, a UBS survey found that over 75 per cent of family offices globally are likely to invest in generative AI in the next two to three years. The Hong Kong government is gung-ho about generative AI development and plans to deploy a ChatGPT-like tool for government departments to use. Many local institutions are already training foundational generative AI models or fine-tuning them for specific sectors and users.
08:15
How a Hong Kong school embraces ChatGPT in the classroom
How a Hong Kong school embraces ChatGPT in the classroom
But we must recognise that general purpose technology in itself may not be seen by end users as of high value. The internet is a case in point. In the heady dotcom days of the 1990s, investors were hopeful that the internet would transform society, all but eliminating the need for intermediaries such as travel agents and brick-and-mortar shops, particularly in retail. In support of this vision, enormous investments went into building internet infrastructure, particularly in laying fibre optic cables and building online portals.
Advertisement
Advertisement