AI Support for Hong Kong SMEs in 2026: BUD Fund Measures and Upcoming Digital Transformation Funding

Hong Kong is expanding practical support for small and medium enterprises (SMEs) that want to adopt artificial intelligence. In a Legislative Council written reply issued on 8 July 2026, the Government outlined measures covering funding, advisory support, training and the wider commercialisation of AI solutions.

AI measures can form part of eligible BUD Fund projects

Since mid-June 2026, the Guide to Application of the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) has expressly stated that eligible project measures may include AI, provided that the existing BUD Fund criteria are met. Examples include developing an AI chatbot for a company website and using AI to check whether production lines meet target-market regulatory requirements.

This does not mean every AI purchase or subscription automatically qualifies. Applicants still need to connect each measure to an eligible market-development, branding, upgrading or restructuring objective and prepare suitable quotations, budgets, implementation plans and evidence.

An enhanced digital transformation programme is being prepared

The existing HK$500 million Digital Transformation Support Pilot Programme has helped nearly 8,800 SMEs adopt off-the-shelf and basic digital solutions on a matching-fund basis. The Government plans an additional HK$300 million to encourage AI and cybersecurity adoption and is considering coverage of more sectors.

The enhanced programme is not yet open for application. Its funding model, scope, funding levels and implementation details remain under review. The stated target is a launch in the second half of 2026 after consultation with the Legislative Council.

Advisory and capacity-building support

SME ReachOut and the four SME centres provide funding referrals, consultations and seminars. From July 2025 to June 2026 they organised 13 AI-related seminars with more than 900 participants. The HKTDC also supports process automation and digital marketing through its Transformation Sandbox and AI learning through its Digital Academy.

For import and export businesses, possible uses include customer-service chatbots, target-market regulatory checks, supply-chain forecasting and risk management. Businesses should assess data protection, cybersecurity, internal controls, staff responsibilities and measurable outcomes before deployment.

What SMEs can prepare now

• Define the operational problem and expected measurable result.
• Map the proposal to the applicable funding objective and eligibility rules.
• Prepare quotations, milestones, budgets and performance indicators.
• Review data access, cybersecurity, regulatory and contractual risks.
• Keep complete procurement, payment and project records.

HKBSCL can assist with funding-application preparation, project budgeting and accounting records, workflow review and related corporate compliance support.

Source: Hong Kong Government, “LCQ7: Support for SMEs in import and export sector in adopting AI”, 8 July 2026: https://www.info.gov.hk/gia/general/202607/08/P2026070800534.htm

This article is for general information only and does not constitute legal, tax, accounting, cybersecurity or funding-approval advice.