Hong Kong Firms Lack Board-Level AI, Cybersecurity Expertise: Report

Executives at Hong Kong’s largest listed companies lack dedicated artificial intelligence and cybersecurity expertise at board level, leaving firms “ill prepared” for the coming era, according to a new report by Grant Thornton Hong Kong.

Board-level skills gap

The report found that fewer than 1 per cent of directors at the city’s largest listed companies possess dedicated artificial intelligence or cybersecurity skills.

Grant Thornton Hong Kong said this represents a severe lack of technological expertise among executives at major listed firms.

The findings come from the firm’s 15th annual Corporate Governance Review, which surveyed 100 major listed firms on Hong Kong’s Hang Seng Composite Index.

Risks recognised, oversight limited

The review found that 59 per cent of companies view cybersecurity or AI as principal business risks.

Yet only 11 per cent had established specialised board committees to oversee digital threats and technology integration.

The gap matters because companies are identifying AI and cybersecurity as major risks while, according to the report, board-level technical expertise and specialised oversight remain limited.

HKEX standards and disclosure

Grant Thornton Hong Kong said these gaps have persisted despite updated Hong Kong Exchanges and Clearing Corporate Governance Code standards introduced last year.

Those HKEX standards introduced mandatory director training, board skills matrices and stricter overboarding limits.

“While overall disclosure quality on HKEX has improved, there remains a disconnect between acknowledged risks and technical expertise at the top,” said Barry Tong, head of advisory at Grant Thornton Hong Kong.

The report therefore points to a mismatch between the risks companies say they face and the AI and cybersecurity skills represented among their directors.

Source: South China Morning Post