Where Hollywood magic meets AI intelligence — Hong Kong becomes the new stage for virtual humans
Updated
January 28, 2026 1:42 PM
William Wong, Chairman and CEO of Digital Domain. PHOTO: YORKE YU
In an era where pixels and intelligence converge, few companies bridge art and science as seamlessly as Digital Domain. Founded three decades ago by visionary filmmaker James Cameron, the company built its name through cinematic wizardry—bringing to life the impossible worlds of Titanic, The Curious Case of Benjamin Button and the Marvel universe. But today, its focus has evolved far beyond Hollywood: Digital Domain is reimagining the future of AI-driven virtual humans—and it’s doing so from right here in Hong Kong.
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“AI and visual technology are merging faster than anyone imagined,” says William Wong, Chairman and CEO of Digital Domain. “For us, the question is not whether AI will reshape entertainment—it already has. The question is how we can extend that power into everyday life.”
Though globally recognized for its work on blockbuster films and AAA games, Digital Domain’s story is also deeply connected to Asia. A Hong Kong–listed company, it operates a network of production and research centers across North America, China and India. In 2024, it announced a major milestone—setting up a new R&D hub at Hong Kong Science Park focused on advancing artificial intelligence and virtual human technologies. “Our roots are in visual storytelling, but AI is unlocking a new frontier,” Wong says. “Hong Kong has been very proactive in promoting innovation and research, and with the right partnerships, we see real potential to make this a global R&D base.”
Building on that commitment, the company plans to invest about HK$200 million over five years, assembling a team of more than 40 professional talents specializing in computer vision, machine learning and digital production. For now, the team is still growing and has room to expand. “Talent is everything,” says Wong. “We want to grow local expertise while bringing in global experience to accelerate the learning curve.”
Digital Domain’s latest chapter revolves around one of AI’s most fascinating frontiers: the creation of virtual humans.
These are hyperrealistic, AI-powered virtual humans capable of speaking, moving and responding in real time. Using the advanced motion-capture and rendering techniques that transformed Hollywood visual effects, the company now builds digital personalities that appear on screens and in physical environments—serving in media, education, retail and even public services.
One of its most visible projects is “Aida”, the AI-powered presenter who delivers nightly weather reports on the Radio Television Hong Kong (RTHK). Another initiative, now in testing, will soon feature AI-powered concierges greeting travelers at airports, able to communicate in multiple languages and provide real-time personalized services. Similar collaborations are under way in healthcare, customer service and education.
“What’s exciting,” says Wong, “is that our technologies amplify human capability, helping to deliver better experiences, greater efficiency and higher capacity. AI-powered virtual humans can interact naturally, emotionally and in any language. They can help scale creativity and service, not replace it.”
To make that possible, Digital Domain has designed its system for compatibility and flexibility. It can connect to major AI models—from OpenAI and Google to Baidu—and operate across cloud platforms like AWS, Alibaba Cloud and Microsoft Azure. “It’s about openness,” says Wong. “Our clients can choose the AI brain that best fits their business.”
Establishing a permanent R&D base in Hong Kong marks a turning point for the company—and, in a broader sense, for the city’s technology ecosystem. With the support of the Office for Attracting Strategic Enterprises (OASES) in Hong Kong, Digital Domain hopes to make the city a creative hub where AI meets visual arts. “Hong Kong is the perfect meeting point,” Wong says. “It combines international exposure with a growing innovation ecosystem. We want to make it a hub for creative AI.”
As part of this effort, the company is also collaborating with universities such as the University of Hong Kong, City University of Hong Kong and Hong Kong Baptist University to co-develop new AI solutions and nurture the next generation of engineers. “The goal,” Wong notes, “is not just R&D for the sake of research—but R&D that translates into real-world impact.”
The collaboration with OASES underscores how both the company and the city share a vision for innovation-led growth. As Peter Yan King-shun, Director-General of OASES, notes, the initiative reflects Hong Kong’s growing strength as a global innovation and technology hub. “OASES was set up to attract high-potential enterprises from around the world across key sectors such as AI, data science, and cultural and creative technology,” he says. “Digital Domain’s new R&D center is a strong example of how Hong Kong can combine world-class talent, technology and creativity to drive innovation and global competitiveness.”
Digital Domain’s story mirrors the evolution of Hong Kong’s own innovation landscape—where creativity, technology and global ambition converge. From the big screen to the next generation of intelligent avatars, the company continues to prove that imagination is not bound by borders, but powered by the courage to reinvent what’s possible.
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Mainland giants accelerate expansion as local players face unprecedented competition.
Updated
January 8, 2026 6:34 PM
HKTV Mall in Amoy Plaza. PHOTO: WIKIPEDIA USER -WPCPEY
Hong Kong is entering a new phase of competition as mainland platforms accelerate their expansion into the city, turning it into a frontline testing ground for Chinese companies preparing to push into global markets. With retail, logistics and food-delivery businesses all reshaped in the past year, Hong Kong has become the closest international environment where mainland firms can experiment with pricing, supply chains and customer behaviour under a familiar regulatory and cultural framework.
The shift became especially clear this week. At HKTVmall’s Vision Day on November 11, 2025, CEO Ricky Wong warned that Hong Kong’s traditional retail model is facing its toughest moment yet. He said the biggest threat is not mainland competitors like Taobao, JD.com or Pinduoduo entering Hong Kong, but the city’s longstanding dependence on physical shopping. If local retailers do not evolve, he said, they risk becoming “very easy to die of thirst in the desert”. Wong even welcomed the rise of mainland e-commerce giants, arguing that the more players enter the city, the faster consumers will shift online — a transition HKTVmall relies on for growth.
Yet his optimism is layered over a challenging reality. HKTVmall’s own numbers reflect pressure from competition and changing consumer habits. The company reported average daily GMV of HK$22.2 million during the latest shopping festival season — up 2.8% month-on-month but still down 4.3% compared year-on-year — showing that even established online platforms are struggling to maintain momentum as mainland entrants squeeze prices and widen product selection.
The city’s food-delivery market illustrates the shift even more sharply. Deliveroo, once the fastest-growing platform in Hong Kong and at one point holding more than half of the market, officially shut down in April this year after a long decline. Its trajectory mirrored the sector’s upheaval: the company surged during the pandemic but lost ground after restrictions eased, first overtaken by Foodpanda and then pressured heavily by Meituan-backed Keeta, which entered Hong Kong in 2023 and quickly seized about 30% of citywide orders.
Deliveroo’s exit and the handover of parts of its business to Foodpanda did little to stabilise the market. Keeta’s rapid expansion instead pushed Foodpanda onto the defensive, leaving two major players competing in a market shaped by mainland-style pricing and operations. Hong Kong’s delivery sector, once dominated by global firms, is increasingly defined by Chinese platforms optimizing speed and efficiency at a scale few competitors can match.
These changes are unfolding as Chinese companies shift their focus toward new global markets.
With China reducing its reliance on the US and EU and exports steadily moving toward ASEAN, Hong Kong has become a strategic launchpad. The city’s proximity, language familiarity and regulatory structure make it the nearest international setting where Chinese firms can test overseas strategies before expanding into Southeast Asia, the Middle East or Latin America. The result is a competitive intensity that local companies have rarely experienced. Retailers face price pressure they can’t match, local platforms are losing ground to mainland giants and global players are struggling to stay in the game.
Consumers benefit from lower prices, faster delivery and wider choice — but for Hong Kong businesses, the landscape has turned unforgiving. Mainland companies are not treating Hong Kong as a final destination but as the first stop in a broader global push. That positioning is reshaping the city’s entire consumer economy. As more mainland firms look outward, Hong Kong’s role as a testing ground will only deepen and the first players to feel the impact will be those operating closest to the consumer.