Lai graduated from the Sir Robert Black College of Education in 1984. He was awarded a certificate of creative watercolour painting and a diploma in Chinese ink painting from the School of Continuing Studies of the Chinese University of Hong Kong in 1985. He obtained his Bachelor of Education with first class honours from the University of Liverpool in 1987, and (with the scholarship from the British Council) a Master of Arts degree from the Royal College of Art in 1990. He received a fellowship from the Asian Cultural Council in 1991, which enabled him to travel in the United States from 1993 to 1994. Lai was awarded a Ph.D. degree in art history and visual art from Lancaster University in 2001. He is now working as a senior lecturer in the Creative Arts Department of the Hong Kong Institute of Education.