Starting in February 2024, the HKUST Library further extended the scope of AI literacy to AI utilization, which focuses on fostering student involvement in utilizing state-of-the-art technologies in the projects that initiated by the Library, named "Digital Scholarship (DS) CoLab". A key focus of the DS CoLab scheme has been on cultivating talents and enabling students to utilize advanced technologies in practical context. It aims to reinforce the library's role as a catalyst and hub for fostering multidisciplinary collaboration and cultivate the "can do spirit" among university members. The Library offers 1-2 projects per year for students to engage with advanced technologies in practical contexts while supporting the Library in tackling challenges and streamlining operational tasks. The tool that introduced in this paper was mainly developed by two of the authors, Sherry Yip Sau Lai and Berry Han Liuruo, as part-time student helpers under one of our DS CoLab scheme in the 2024 Spring Semester (February to May 2024). This paper details the complete journey from ideation to implementation of developing a Chinese Named-Entity Recognition (NER) Tool from the group up within one semester, from the initial research and planning stages to execution and come up a viable product. The collaborative spirit fostered by this project, with students playing a central role, exemplifies the power and potential of innovative educational models that prioritize hands-on learning with student involvement.