Hong Kong, 23 September 2026: Chilean-American novelist Isabel Allende is one of the most widely-read authors in the world, having sold more than 80 million books. So fans were thrilled to read in the Chicago Sun-Times about her new publication, Tidewater Dreams – “a multigenerational saga set in a coastal town where magical realism meets environmental activism” – one of 15 titles in the newspaper’s recommended 2025 summer reading list.
Except the book didn’t exist. Neither did many of the other novels in the guide. They had been dreamed up by artificial intelligence and the journalist using it to compile the list had failed to fact check. The Sun-Times published a heartfelt apology.
Search for “AI fails” online and you’ll find an extensive – and expensive – array of examples: the US property firm that lost US$500 million when its algorithm misjudged the volatile market; the chatbot that agreed to sell a new Chevrolet for US$1 and made it a legally binding offer; a bot that recommended insider trading to investors and then denied it; and – gulp! – the lawyer in a New York court citing non-existent legal cases after using ChatGPT for research. Tread carefully, my friends.
Errors aside, AI is with us to stay. Hence, city leader John Lee promises we are “poised to become a global hub for AI development” and has made the advanced technology a cornerstone of his latest policy address and related five-year plan. AI is to be developed across multiple sectors including finance, legal, transportation and tourism. Citizens will get in on the act via some 200 training courses and activities under an “AI for All” programme while the authorities will also roll out a “Robots in the Community” pilot initiative.
But the really eye-catching measure is an “AI City Brain” to improve urban management and bolster emergency response. The digital platform will collate real-time data from various sources – CCTV cameras, tracking systems, smart sensors, government databases, social media and mobile apps – and use it to optimise the ebb and flow of urban life, including traffic build-up, waste management and crowd order. It is hardly a new idea. The first such model was launched in Hangzhou a decade ago and has since been adopted by other Mainland cities.
The first phase, costing HK$200 million, will see City Brain aligned with the police force’s citywide security camera network. No need to fret, though. “The function is not for personal surveillance or catching thieves, that is not our target,” reassures No2 official Eric Chan, who will lead the taskforce overseeing the project. OK!
In a rush? Transport Department chiefs are already in the fast lane, it seems. They have announced an AI-powered traffic light system that detects real-time vehicle and pedestrian movement and calculates signal times accordingly, dynamically allocating more “green time” for those on foot. It could cut the waiting time to cross a busy road by 20 seconds. The first Smart Traffic Signal will be installed in Causeway Bay early next year, with 50 more to follow in our city’s busiest districts. Not content with that, tech-savvy transport overseers will also use AI to speed up vehicle licence renewals from 10 days to just one, while quicker cross-boundary driving permit applications are also in the offing.
These advances come as Hong Kong seeks to raise expenditure on innovation activities to 3% of GDP – double the current rate – by 2030. Aside from AI, new energy, aerospace, engineering and biotechnology are all viewed as having huge potential. However, if it appears Hong Kong is powering ahead, think again. Some experts believe we’re merely playing catch-up in the AI race. Technology sector lawmaker Duncan Chiu points to a legal framework that is historically focused on privacy, making it difficult for different sectors of society to share resident data. “Authorities should refine their AI governance,” he opines. City University professor Ray Cheung is similarly concerned, believing we face bottlenecks in digital literacy and risk appetite. He urges the government to establish a clear “trial-and-error” policy to encourage AI experimentation.
Amid this forward thinking, 1997 seems a long time ago. However, in recent days, we’ve had cause to reflect on a momentous point in our city’s colourful history with the passing of Hong Kong’s first post-Handover leader, Tung Chee-hwa, aged 89. He was honoured with a state funeral on Sunday. Mourners remembered a staunch patriot who led the city with grace and good nature during a period of change as we adjusted to “one country, two systems”. Chinese president Xi Jinping sent his condolences while former chief executive CY Leung and John Lee were among the pallbearers. Tung Chee-hwa served Hong Kong with honour. May he rest in peace.
Ah, the challenges of leadership. Neil Jensen knows all about these as chairman of Hong Kong Football Club, steering the venerable institution as it comes to terms with government measures to end long-standing concessionary land premiums for sports clubs. Neil is my latest guest on Law & More, speaking with eloquence and candour about this and other topics. His passion for Hong Kong shines through in a fascinating chat.
To close, a final snippet of AI news: Hong Kong will begin recruitment for an AI commissioner in the second quarter of next year, seeking a capable individual who can oversee risk governance and combat crimes such as deepfake porn and online scams. The new post is handsomely remunerated and the government is confident a suitable candidate can be found in our city’s existing talent pool.
Let’s hope the commissioner is also an avid reader. After all, as the Chicago Sun-Times has discovered, AI can conjure up some – ahem – novel ideas.
Until next time, everybody!
Colin Cohen
Senior Partner
Boase Cohen & Collins
