Xiao-I Corporation Delivers Transformative AI-Powered HR Solution to Hong Kong Public Sector, Showcasing Scalable MaaS Excellence

Rhea-AI Summary

Xiao-I (NASDAQ: AIXI) has successfully implemented an 8-million-HKD AI-powered HR system for a Hong Kong public sector client. The system, powered by the Hua Zang Large Language Model (LLM), streamlines HR operations including talent management, policy compliance, and employee engagement.

The solution demonstrates several key advantages: 40% faster deployment through pre-trained module libraries, cost-effective scalability without requiring expensive GPU clusters, transparent decision-making processes for regulatory compliance, and cross-industry adaptability. The system operates with high accuracy while minimizing computing resources and operational costs.

This successful deployment serves as a strategic milestone for Xiao-I's planned expansion into the U.S. market later this year, showcasing the company's Model-as-a-Service (MaaS) platform capabilities and its ability to deliver scalable AI solutions across different sectors.

Positive

• Secured 8-million-HKD contract with Hong Kong public sector
• Achieved 40% reduction in deployment time through pre-trained modules
• Demonstrated cost-effectiveness through minimal computing resource requirements
• Positioned for U.S. market expansion

Negative

• None.

Insights

AI Technology & Market Analyst

This 8 million HKD contract marks a pivotal moment for Xiao-I, showcasing their ability to penetrate high-value government contracts in sophisticated markets. The successful deployment offers three critical insights:

Technical Differentiation: The Hua Zang LLM's ability to operate efficiently without extensive GPU infrastructure addresses a important market gap. Most enterprise LLM solutions require substantial computing resources, making them cost-prohibitive for many public sector organizations. This low-resource optimization could be a game-changer for penetrating budget-conscious markets.

Market Strategy Evolution: The Hong Kong deployment serves as a strategic proof-of-concept for Xiao-I's U.S. expansion plans. The public sector experience, especially in areas requiring strict compliance and transparency, positions them well for the highly regulated U.S. market. The 40% faster deployment time through pre-trained modules indicates a scalable approach that could accelerate market penetration.

Financial Implications: While the 8 million HKD contract value is modest, the real value lies in the replicability of the solution. The modular design and proven cost efficiency create a compelling case for other public sector entities, potentially leading to a network effect in contract acquisition. The focus on operational cost reduction rather than just implementation costs addresses a key pain point in public sector AI adoption.

Public Sector Technology Consultant

This deployment represents a significant breakthrough in public sector AI adoption, particularly noteworthy for three key aspects:

Compliance Innovation: The emphasis on interpretable AI addresses a critical barrier in public sector adoption. Government agencies typically require high levels of transparency in automated decision-making and Xiao-I's solution demonstrates this without compromising performance. This could become a key differentiator in markets with strict regulatory oversight.

Cross-Department Scalability: The modular architecture enables expansion beyond HR into education, healthcare and other government verticals. This horizontal scalability is important for public sector vendors, as it allows agencies to standardize their AI infrastructure across departments, reducing integration complexity and training costs.

Resource Optimization: The solution's ability to operate effectively without extensive GPU infrastructure is particularly relevant for government agencies facing budget constraints and legacy system limitations. This could accelerate adoption in smaller government entities that previously considered AI solutions out of reach due to infrastructure costs.

ROCKVILLE, Md., Jan. 28, 2025 /PRNewswire/ -- Xiao-I Corporation (NASDAQ: AIXI), a leading artificial intelligence company ("Xiao-I"), today announced the successful deployment of its 8-million-HKD AI-powered HR system for a Hong Kong public sector client. This milestone underscores Xiao-I's growing influence in public sector digitization and highlights the scalability of its Model-as-a-Service (MaaS) platform, which has already driven successful AI adoption across Asia and is poised to support the company's upcoming U.S. expansion.

The Hua Zang Large Language Model (LLM), the core engine behind the solution, enabled the client to streamline HR operations—including talent management, policy compliance, and employee engagement—with unprecedented efficiency. By leveraging Xiao-I's proprietary AI architecture, the system achieved high accuracy and transparency while operating on minimal computing resources, reducing both deployment complexity and long-term operational costs.

Key Advantages of the Hua Zang LLM in Public Sector Deployment

• Rapid Implementation: Pre-trained module libraries cut deployment time by 40%, enabling the client to operationalize the system within weeks.
• Cost-Effective Scalability: Optimized for low-resource environments, the solution eliminates the need for expensive GPU clusters, aligning with public sector budget constraints.
• Interpretable AI: Transparent decision-making processes ensure compliance with regulatory standards, fostering trust in automated HR outcomes.
• Cross-Industry Adaptability: Modular design allows seamless customization for education, healthcare, and other government verticals.

"This project exemplifies how Xiao-I's AI solutions empower public institutions to modernize efficiently," said Xiao-I's CEO Mr. Hui Yuan. "The Hong Kong deployment not only validates our MaaS platform's versatility but also reinforces our commitment to delivering scalable, ethical AI—principles that will guide our entry into the U.S. market later this year."

The Hong Kong initiative builds on Xiao-I's proven track record in Asia, where its AI solutions have been adopted by governments and enterprises for tasks ranging from citizen services to supply chain optimization. The company's focus on cost-effective, high-impact AI aligns with global demand for technologies that balance performance with fiscal responsibility—a cornerstone of its upcoming U.S. market strategy.

Looking Ahead

Xiao-I plans to replicate this success in North America, tailoring its Hua Zang LLM to address pressing needs in public administration and corporate sectors. The Hong Kong case study will serve as a blueprint for demonstrating how AI can drive operational excellence without prohibitive upfront investments.

About Xiao-I Corporation

Xiao-I Corporation is a leading cognitive intelligence enterprise in China that offers a diverse range of business solutions and services in artificial intelligence, covering natural language processing, voice and image recognition, machine learning, and affective computing. Since its inception in 2001, the Company has developed an extensive portfolio of cognitive intelligence technologies that are highly suitable and have been applied to a wide variety of business cases. Xiao-I powers its cognitive intelligence products and services with its cutting-edge, proprietary AI technologies to enable and promote industrial digitization, intelligent upgrading, and transformation. For more information, please visit: www.xiaoi.com.

Forward-Looking Statements

This press release contains forward-looking statements as defined by the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements concerning plans, objectives, goals, strategies, future events or performance, and underlying assumptions and other statements that are other than statements of historical facts. When the Company uses words such as "may," "will," "intend," "should," "believe," "expect," "anticipate," "project," "estimate" or similar expressions that do not relate solely to historical matters, it is making forward-looking statements. Forward-looking statements are not guarantees of future performance and involve risks and uncertainties that may cause the actual results to differ materially from the Company's expectations discussed in the forward-looking statements. These statements are subject to uncertainties and risks including, but not limited to, the following: the Company's ability to achieve its goals and strategies, the Company's future business development and plans for future business development, including its financial conditions and results of operations, product and service demand and acceptance, reputation and brand, the impact of competition and pricing, changes in technology, government regulations, fluctuations in general economic and business conditions in China, and assumptions underlying or related to any of the foregoing and other risks contained in reports filed by the Company with the U.S. Securities and Exchange Commission ("SEC"). For these reasons, among others, investors are cautioned not to place undue reliance upon any forward-looking statements in this press release. Additional factors are discussed in the Company's filings with the SEC, including under the section entitled "Risk Factors" in its annual report on Form 20-F filed with the SEC on April 30, 2024, as well as its current reports on Form 6-K and other filings, all of which are available for review at www.sec.gov. The Company undertakes no obligation to publicly revise these forward-looking statements to reflect events or circumstances that arise after the date hereof.

For investor and media inquiries, please contact:
Ms. Berry Xia
Email: ir@xiaoi.com 

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SOURCE Xiao-I Corporation

FAQ

What is the value of Xiao-I's (AIXI) recent Hong Kong public sector contract?

The contract is valued at 8 million HKD for an AI-powered HR system implementation.

How much deployment time reduction did AIXI achieve with its Hua Zang LLM?

Xiao-I achieved a 40% reduction in deployment time through its pre-trained module libraries.

When is Xiao-I (AIXI) planning to expand into the U.S. market?

Xiao-I plans to enter the U.S. market later in 2025.

What are the key features of AIXI's Hua Zang LLM for public sector deployment?

Key features include rapid implementation, cost-effective scalability without expensive GPU clusters, transparent decision-making processes, and cross-industry adaptability.

How does AIXI's HR system benefit public sector operations?

The system streamlines talent management, policy compliance, and employee engagement while reducing deployment complexity and long-term operational costs.