SMEs focus on innovation and AI amidst market headwinds

94% intend to innovate their products or services.

Hong Kong's small and medium enterprises (SMEs) focus on innovating and increasing their investment in artificial intelligence (AI) to combat market uncertainties, according to a CPA Australia survey.

This year, 94% of respondents said they intend to innovate their products or services, surpassing their regional counterparts for the second consecutive year.

Notably, 41% reported making a major investment in AI last year, marking it as a significant investment among other technologies.

The survey found that 65% reported business growth in 2024, a notable rise from 57% in 2023 and the strongest performance since 2017.

However, only 57% expect their business to grow in 2025, marking a sharp decline from last year's 69% growth projection.