FINTECH MANPOWER DEVELOPMENT IN ASIA-PACIFIC FINANCIAL CENTERS WITH A FOCUS ON ARTIFICIAL INTELLIGENCE AND BIG DATA PROFESSIONALS

9 8 Artificial Intelligence and Big Data Talent Development in Asia Pacific 2. ARTIFICIAL INTELLIGENCE AND BIG DATA TALENT DEVELOPMENT IN ASIA PACIFIC 2.1 HONG KONG As of 2019, there were 272,600 employees working in the finance industry in Hong Kong.4 The finance industry contributed 21.2% to the local GDP (i.e. HK$580.1 billion).5 According to the projection of the Hong Kong Special Administrative Region (HKSAR),6 the city needs a considerable supply of talent with the right skills and knowledge related to big data analytics, cybersecurity, and AI to sustain its continuous economic development. A growing demand for AI and big data talent in the Information Technology and Information Services sector is anticipated, with an annual growth rate of 2.2% from 2017 to 2027 (Table 2.1). IT workers employed in sectors including financial services, import, export, wholesale and retail trades, as well as social and personal services will experience an annual growth rate of 2.5% to 119,000 during the same period (Table 2.2). This growth is the highest in the field of Innovation and Technology (I&T) with an annual rate of 4.3% from 2017 to 2027 (Table 2.3). The finance industry has identified that a shortage of AI talent will contribute the greatest challenge to the ongoing and upcoming digitalization of financial services in Hong Kong. According to a survey conducted by the Hong Kong Monetary Authority (HKMA) in 2019, financial institutions ranked internal research and development as key to enhancing their AI capabilities.7 Considering the banks’ domain knowledge and their specific business models, 75% of the respondent banks which planned to adopt AI solutions in their businesses would prefer to develop AI applications internally rather than outsourcing them to external parties. This indicates that banks would prefer to nurture an internal AI workforce to achieve better alignment between the bank’s business model, stage of AI development, and its strategic plans. This finding is echoed in yet another survey conducted by the Hong Kong Academy of Finance in 20208 which revealed that most banks have plans to recruit more talent and invest more in developing in-house AI applications in the future. 4. Census and Statistics Department, Hong Kong Special Administrative Region (Jan 2021). | Hong Kong Monthly Digest of Statistics - The Four Key Industries in the Hong Kong Economy. | https://www.censtatd.gov.hk/en/data/stat_report/product/ FA100099/att/B72101FB2021XXXXB0100.pdf 5. Census and Statistics Department, Hong Kong Special Administrative Region (Jan 2021). | Hong Kong Monthly Digest of Statistics - The Four Key Industries in the Hong Kong Economy. | https://www.censtatd.gov.hk/en/data/stat_report/product/ FA100099/att/B72101FB2021XXXXB0100.pdf 6. The Government of the Hong Kong Special Administrative Region (2019, December). | Report on Manpower Projection to 2027. | https://www.lwb.gov.hk/en/other_info/mp2027_en.pdf 7. Hong Kong Monetary Authority and PwC. | Reshaping Banking with Artificial Intelligence. | https://www.hkma.gov.hk/media/ eng/doc/key-functions/finanical-infrastructure/Whitepaper_on_AI.pdf (p.37) 8. Hong Kong Academy of Finance (2020, August). | Artificial Intelligence in Banking - The changing landscape in compliance and supervision. | https://www.aof.org.hk/docs/default-source/hkimr/applied-research-report/airep.pdf (p.12)