The AI Race between Tech Giants: Hong Kong, Singapore, and Abu Dhabi

The future of artificial intelligence appears bright with continued advancements in technology. Investment in artificial intelligence reached $92 billion in 2022, and AI investment has increased more than sixfold since 2016.

People’s expectations for accessible and efficient technologies are deepening across different fields, including government services. To meet those expectations, governments should explore new service and interaction models that are both modern, integrated, and, most importantly, responsible and governed.

In 2024, an era where technology shapes the very fabric of governance, we stand at a critical juncture demanding a profound rethinking of our approach. Across borders, we must unite to forge a universal framework of AI laws, one that transcends geopolitical boundaries and fosters innovation while upholding ethical standards.

Recently, I traveled to the UAE to attend several project meetings and explore whether a company engaged in AI development could benefit from setting up a branch office in Abu Dhabi. I was amazed to see that driverless buses are already in use on Saadiyat Island. This sparked my curiosity about how the policies, regulations, and investments of Abu Dhabi and Singapore compare with Hong Kong, where our company is currently located.?

During discussions with company CEOs and owners in Hong Kong, the topic of whether or not Hong Kong remains a viable business location in the medium and long term frequently arose. So, I decided to share my analysis.

Recognizing the AI potential, governments worldwide have been actively pursuing policies and strategies to foster AI development and adoption. In this article, we'll delve into the approaches of three key players in the AI landscape: Hong Kong, Abu Dhabi, and Singapore.

Hong Kong

Hong Kong is on course to become an international innovation & technology hub. Having spent more than HK$150 billion (US$19.1 billion) over the past five years to develop the I&T sector, the Hong Kong government has succeeded in putting the city firmly on course to becoming a world-leading I&T hub, with special emphasis on AI. The AI market size in Hong Kong is expected to show an annual growth rate (CAGR 2024-2030) of 28.27%, resulting in a market volume of US$3.43bn by 2030.

Policies and Initiatives

• Innovation and Technology Fund (ITF): With a substantial budget of HK$11 billion, the ITF supports R&D projects and the establishment of research centers like the Hong Kong Applied Science and Technology Research Institute (ASTRI).

• Smart City Blueprint 2.0: Relaunched in 2022, this comprehensive plan aims to enhance urban living through AI-driven initiatives and embrace IT to build a world-famed Smart Hong Kong characterized by a strong economy and high living quality.

• Ethical Artificial Intelligence Framework: An Ethical AI Framework has been created for internal government use to guide the adoption of AI and big data analytics. It helps departments incorporate ethical considerations into their IT projects with principles, practices, and assessment criteria.

Achievements and Goals:

• Hong Kong achieved an overall private investment of 630 million USD in AI funding.
• Hong Kong deployed over 400 smart lampposts by the end of 2023.
• 5G coverage in Hong Kong has exceeded 90% of the population by 2024.
• More than 228 AI-related patents have been granted.
• Hong Kong has achieved one of the highest growth in AI hiring from 2016 to 2021.

Private and Non-profit Support

• Hong Kong Science and Technology Parks Corporation (HKSTP): Operates Hong Kong Science Park, supporting AI startups and companies through various services and facilities.
• Hong Kong AI Society: Non-profit fostering AI culture and community through events, workshops, and advocacy for ethical AI use.

Abu Dhabi

Abu Dhabi is the first-ever state with an AI Minister & a dedicated AI Ministry Office. Abu Dhabi is also on a mission to become the global AI leader with their G42 organization, valued at $220 billion. Microsoft has also recently invested $1.5 billion in an AI partnership with Abu Dhabi. The AI market size is expected to show an annual growth rate (CAGR 2024-2030) of 28.54%, resulting in a market volume of US$4.285 billion by 2030.

Policies and Initiatives

• Abu Dhabi Economic Vision 2030: The Abu Dhabi Economic Vision 2030 aims to reduce GDP diversification, enterprise-base enlargement, and increase competitiveness by supporting leading-edge technology sectors such as AI.
• National AI Strategy 2031: The UAE National AI Strategy 2031 focuses on deploying AI technologies to become a global AI leader.
• ?Ghadan 21: Ghadan 21 is Abu Dhabi’s three-year accelerator program, which aims to stimulate economic growth and social development in the emirate by injecting substantial investments, totaling 13.6 billion USD, across various sectors including AI.
• The Mohamed bin Zayed University of Artificial Intelligence: Abu Dhabi founded MBZUAI, a graduate-level, research-based academic institution that offers specialized degree programs for local and international students in the field of Artificial Intelligence.

Achievements and Goals:

• Abu Dhabi saw a remarkable 67% increase in AI company registrations between 2021 and 2023, as published in February of 2024.
• UAE is among the top 20 regions in the world focusing the most on AI. These regions are ranked based on their AI investment, innovation, and implementation.
• G42, an Abu Dhabi-based global AI company launched a whooping 10 billion USD expansion fund.
• Abu Dhabi’s Advanced Technology Research Council has launched Falcon 2 series AI models, against OpenAI, and Google’s Gemini.
• Abu Dhabi is setting up a technology investment firm targeting deals in AI and semiconductors that are valued at 100 billion USD.

Private and Non-profit Support

• Mohamed bin Zayed University of Artificial Intelligence (MBZUAI): World's first graduate-level AI university, advancing research, education, and collaboration in AI.
• AI and Big Data Lab: Joint initiative between Abu Dhabi Investment Office and SenseTime, developing and deploying AI solutions across sectors.

Singapore

Singapore was among the first countries to publish an AI plan in 2019. To promote the responsible use of AI, Singapore rolled out AI Verify in May 2022 – the world’s first AI governance testing framework and software toolkit for companies. The AI market size in Singapore is expected to show an annual growth rate (CAGR 2024-2030) of 28.10%, resulting in a market volume of US$4.64bn by 2030.

Policies and Initiatives

• The RIE 2025 Plan: Singapore’s Research, Innovation, and Enterprise 2025 Plan focuses on the development of Singapore as a knowledge-based, innovation-driven economy and society by investing, focusing, and implementing advanced technologies including AI.
• Singapore National AI Strategy 2.0: The Singapore National AI Strategy 2.0 aims to deepen AI usage through rigorous research and development systems to develop new AI products and become an AI industry leader.
• The Five-Year Investment Plan: Singapore will invest about 743 million USD over the next five years to further boost AI capabilities, and securely implement responsible AI technologies.

Achievements and Goals:

• Singapore is among the top 3 countries focusing on investing, implementing, and innovating AI technologies. Singapore is just behind the US and China.
• Singapore achieved an overall private investment of 930 million USD in AI funding.
• Singapore has the highest global AI talent demand in the world.
• ?Singapore is the global leader in both the Government and the Data Infrastructure with regards to AI. This means Singapore has achieved top Governance AI readiness scores.
• ?Singapore’s Monetary Authority has collaborated with banks and tech firms to develop a risk framework for generative AI.
• Singapore is the top country intensely focusing on AI capacity to become a global leader.

Private and Non-profit Support

• AI Singapore: National initiative to catalyze AI capabilities and activities through collaboration with research institutions, industry partners, and government agencies.
• Industry Collaboration: Various industry-led initiatives and partnerships driving innovation and adoption of AI across sectors.

Summary Findings:

Global AI Index Scores:

• Singapore achieved the highest global AI index scores among Hong Kong, Singapore, and Abu Dhabi.
• UAE achieved the 2nd highest global AI index scores, just behind Singapore, while Hong Kong is behind both countries in the global AI index scores.

Research & Development:

• Singapore is far ahead in research & development for AI, compared to UAE and Hong Kong.
• UAE is ahead of Hong Kong in research & development for AI.

Government Strategy:

• Singapore’s government strategy for AI is far ahead and clearer than both Hong Kong and the UAE.
• UAE’s government strategy for AI is clearer and ahead of Hong Kong’s government strategy for AI.

Commercial Investment & Infrastructure:

• Singapore’s commercial investment and infrastructure for AI is superior to both Hong Kong and the UAE.
• UAE is ahead of Hong Kong in terms of AI infrastructure.
• Hong Kong is ahead of the UAE in terms of commercial investments for AI.

AI Talent:

• Singapore has the most AI talent compared to the UAE and Hong Kong.
• UAE has more AI talent than Hong Kong.

Final Thoughts:

As we’ve explored, Hong Kong, Abu Dhabi, and Singapore each offer unique advantages for AI development through their policies, investments, and infrastructure. Hong Kong is making strides with its innovation hubs and smart city initiatives, Abu Dhabi is leveraging significant investments and strategic plans, and Singapore stands out with its governance frameworks and research capabilities.

We invite you to share your views and experiences regarding setting up a branch or placing your AI development team in locations outside your headquarters. What benefits have you observed from favorable regulations or other local advantages? Your insights could be invaluable to other businesses facing similar challenges with AI.