Hong Kong has unveiled a four-step artificial intelligence (AI) “talent ladder” strategy to counter entry-level job shock and foster industry leaders, viewing the technology as a “catalyst, not a threat”.

Permanent Secretary for Innovation, Technology and Industry Kevin Choi Kit-ming warned on Monday that the “entry-level shock” was real because AI performed well in many routine tasks that once made up a graduate’s first job, such as basic coding and first-line customer service.

Speaking at the Global Youth Powerhouse Summit for young technology leaders, Choi added that the government was investing in AI “at a population scale”, aiming to enhance overall digital literacy, rather than “shield young people” from the technology.

“In Hong Kong, we view AI not as a threat, but as a catalyst ... We are building a comprehensive ‘talent ladder’ to take emerging professionals from foundational literacy to industry leadership,” he said.

Citing a recent report showing 70 per cent of Hongkongers were proficient AI users, and 20 per cent being “super users” harnessing AI agents for daily tasks, Choi said Hong Kong had been in a good starting position.

The first of the four-step “talent ladder” identified by Choi involved removing the cost and access barrier to AI tools, upskilling employees with large-scale educational programmes and promoting its use among students, researchers and working professionals.

It would be followed by the second step, where the government vowed to “convert active learners into practical innovators” with a series of higher education and advanced talent nurturing initiatives.

The third step was forming an ecosystem for synergies between research and industry, while the final one would be providing an infrastructure and policy environment conducive to innovation.

“A ladder needs solid ground, and for Hong Kong that foundation is a deliberate strategy of balancing robust innovation with responsible governance,” he said.

In Chief Executive John Lee Ka-chiu’s policy address, he revealed that the government would study ways to refine its AI governance framework to tackle AI-enabled crimes and sort out liability boundaries for disputes caused by AI use.

Authorities will also study a governance framework for AI agents while assessing the technology’s impact on the labour force.

Speaking at the same event, Lee said Hong Kong’s role was becoming more vital as mainland China went from strength to strength in the global AI race.

“Geopolitical tensions, rapid technological advances and economic uncertainties are reshaping the landscape for your generation. Hong Kong thrives on changes and always emerges stronger from challenges,” he said.

“For you, Hong Kong is where careers are built, talent is nurtured, and global horizons are within reach.”He pointed to the city’s Northern Metropolis megaproject, which aimed to turn 30,000 hectares of land bordering the mainland into an economic powerhouse and housing hub, as the place where opportunities would unfold for youngsters.

Another example of government support cited by Lee was internship schemes announced in his latest policy address, in which authorities would team up with the private sector to offer 30,000 internship placements for university students and fresh graduates across two years, with 10,000 of them focusing on the science, technology, engineering and mathematics sectors.