More than half of SMEs eye AI but skills gap slows rollout

A survey found knowledge gaps and ROI concerns are slowing wider business transformation.

More than half of Hong Kong small and medium-sized enterprises (SMEs) are adopting or planning to adopt artificial intelligence (AI), but capability gaps continue to limit wider implementation, according to a survey commissioned by Dah Sing Bank.

The survey, conducted in May 2026 amongst 343 Hong Kong SMEs, found that 23% have already adopted AI or generative AI (GenAI) in their operations, whilst another 32% plan to implement the technology within the next one to two years.

Despite the growing interest, 45% of respondents said they have yet to adopt AI. Amongst these businesses, 57% cited a lack of relevant knowledge or skills as the biggest barrier.

Other challenges included unclear return on investment at 38%, the absence of suitable use cases at 29%, and insufficient time or resources to explore AI further at 24%.

Dah Sing Bank said SMEs that have adopted AI are primarily using it for marketing and content creation at 56%, followed by customer service at 42%, sales support at 35%, and data analysis at 30%.

Adoption was lower in areas such as process automation and workflow improvement at 14%, which the bank said indicates AI has yet to be widely integrated into core business operations.

The survey also found that businesses continue to expand their use of digital tools. Social media marketing was used by 51% of respondents, whilst 50% had adopted electronic payment solutions and 43% were using e-commerce platforms.

Beyond digitalisation, SMEs also expressed interest in opportunities linked to the Northern Metropolis and the Hetao Hong Kong Science Park.

Nearly 70% of respondents said developments in the two projects are relevant to their future businesses.

Amongst those planning to participate, 51% said they intend to provide products and services to future residents, businesses and workers in the district.

Another 44% plan to offer specialised services or solutions to companies operating in the area, whilst 36% expect to participate in construction and infrastructure supply chains.

Around 29% plan to collaborate with research institutions or technology firms, and 25% are interested in joining pilot projects or proof-of-concept programmes.

Phoebe Wong, deputy chief executive, senior executive director, and head of group personal banking at Dah Sing Bank, said the survey shows Hong Kong SMEs are increasingly exploring AI applications and opportunities in the new economy, although many businesses continue to face challenges in technology adoption and resource allocation.

The survey was conducted online from 19 to 29 May.