AI competency still prioritized by Hong Kong businesses amid reduced training funds, according to a recent survey
**Hong Kong Employers Shift Training Focus Towards AI Amid Economic Uncertainties**
In a survey conducted by the Hong Kong Institute of Human Resource Management, findings reveal that Hong Kong employers have adapted their staff training practices to navigate economic uncertainties. The survey, announced on Wednesday, sheds light on the trends in employee training budgets and hours within Hong Kong industries.
**Training Budgets: Cuts Amid Economic Pressures**
Hong Kong firms have reduced their employee training budgets in response to economic uncertainty. In 2024, training budgets accounted for 4% of the total annual base salary, down by 0.3 percentage points from the previous year. Despite recent cuts, the current training budget allocation remains above pre-pandemic levels, which hovered around 3.4% of base salary.
The actual training expenditure in 2024 is lower than the one in 2023, amounting to 3.1% of the annual base salary, down from 3.8%. However, the Hong Kong Institute of Human Resource Management predicts corporate training budgets will remain stable in 2025, suggesting that further significant cuts are not anticipated.
**Training Hours: Increasing Focus on AI and Emerging Technologies**
Despite reduced budgets, the average annual staff training hours climbed by 4.6% to more than 18 hours per employee last year. This increase in training hours is driven by a strong employer focus on upskilling staff in artificial intelligence and other emerging technologies. Three-quarters (73%) of businesses now embrace AI in their employee development strategies, highlighting its growing importance in the local business landscape.
Companies are striving to extract greater value from limited training resources, prioritizing high-impact upskilling in areas critical to business continuity and competitiveness—especially AI and digital transformation.
**Broader HR and Economic Context**
Employers are also rethinking broader benefits strategies due to soaring medical and benefit costs, with 81% of Hong Kong employers citing rising benefit costs as their top HR concern. Despite budget pressures, there remains a strong emphasis on talent attraction and retention, with 65% of employers identifying competition for talent as a key driver of HR strategy.
**Summary**
The survey findings suggest a shift in training focus towards AI tools amid economic uncertainties. The economic uncertainties have not affected the training budget remaining above the pre-pandemic level in 2024. The survey findings reveal an increase in training hours for AI tool proficiency despite budget cuts. Chester Tsang Wing-cheong, co-chairman of the institute's Learning and Development Committee, stated that the economic situation in Hong Kong and around the globe was uncertain and not ideal.
The survey was conducted between January and April of last year and involved 115 local companies and organizations across 17 industries in Hong Kong. Firms in Hong Kong cut budgets for employee training last year due to economic uncertainties, leading to a decrease in the training budget for 2024. However, the focus on AI and digital transformation remains a strategic priority, with companies doing more with less to ensure their workforce remains competitive in the ever-evolving digital landscape.
In response to economic uncertainties, Hong Kong employers have focused their staff training practices on artificial intelligence, with 73% of businesses now incorporating AI in their employee development strategies. Despite decreased training budgets, the average annual staff training hours have increased, demonstrating an emphasis on upskilling employees in AI and related technologies.
