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AI investment rises in Hong Kong and China as businesses confront mounting risks
Hong Kong firms averaged $214 million in AI spending in H1 2026, 17% above the global average. Yet 63% of these companies recently reported an AI-related cybersecurity breach.
Companies in mainland China and Hong Kong are pouring money into AI, with Hong Kong's average spend hitting $214 million in the first half of 2026-17% above the global average-according to DLA Piper's new survey of 975 business leaders across 16 markets. The report, released June 16, also shows corporate AI investment shifting eastward and reveals mounting exposure to vendor dependency, intellectual property risk, and cybersecurity breaches that challenge even well-resourced management teams.
Investment flows into Asia
Firms on the Chinese mainland reported more moderate spending, at just over $100 million, but nearly 70% of mainland respondents said capital is increasingly flowing into the region. Globally, the average AI investment stood at $183 million. Hong Kong emerged as one of the most active AI dealmaking hubs, with licensing agreements, outsourcing arrangements, and strategic partnerships driving the activity.
Divergent adoption speeds
In Hong Kong, only 52% of respondents reported pressure to scale AI pilots, compared with 70% globally. Around 80% said their primary objective remains testing and validation rather than immediate deployment. Mainland Chinese firms are advancing more quickly toward operational integration: 80% said AI has already changed specific job roles within their organisations. Confidence in compliance is higher in Hong Kong at 87%, versus 79% globally, while the mainland recorded just 60%, reflecting the evolving nature of AI governance frameworks there.
Lauren Hurcombe, DLA Piper's Technology & Sourcing Group Partner and Global Co-chair, said Hong Kong firms are prioritising "controlled experimentation." She added, "while companies in the city are focussing on piloting use cases within structured frameworks, mainland Chinese firms are moving more rapidly towards enterprise-wide deployment of AI technologies."
Risk picture: dependency, IP, and cyber
While adoption speeds differ, the need for practical AI for Management insights to navigate these risks is common across both markets. Despite strong investment, both markets face significant risks. In Hong Kong, 77% reported exposure to dependency risks within the AI ecosystem, well above the 67% global average. Intellectual property and copyright issues also featured as a strategic concern. In mainland China, the risk focus is different: cybersecurity (50%) and data integrity (43%) top the list. Both markets reported elevated cyber incidents-63% of Hong Kong respondents had experienced an AI-related cybersecurity breach, compared with 52% globally, while half of mainland enterprises said they were targeted by cyberattacks in the past year.
Pro-AI sentiment prevails
Attitudes toward AI adoption remain strongly positive in both markets. In Hong Kong, 79% described their stance as pro-AI, above the global average of 74%, with 44% strongly supportive. Mainland China recorded the highest level of support globally at 83% explicitly pro-AI. Only 8% of mainland firms reported lacking a clear organisational stance or leaving AI tool management to individual employees, compared with 9% in Hong Kong and 15% globally, suggesting both markets have relatively well-defined AI governance approaches.
Why this matters for management
The survey data makes clear that management teams cannot treat AI investment as a purely technological play. The widening gap between rapid spending and rising risk exposure-spanning vendor concentration, intellectual property disputes, and cybersecurity-demands structured oversight. Leaders who ensure their AI strategies are underpinned by strong governance, compliance, and vendor management protocols will be better positioned to extract value without stumbling into costly blind spots.