Mr Hassabis is chief executive of DeepMind, which has developed software that can beat human experts at the complex board game Go.
He was made a Commander of the Order of the British Empire (CBE) for “services to science and technology”.
He said he was “very proud” of his team at DeepMind.
“This is recognition of the immense contribution they have already made to the world of science and technology, and I’m excited about the potential for many more breakthroughs and societal benefit in the years ahead,” he said.
Earlier this month DeepMind software beat other programmes in chess within hours of teaching itself the game from scratch.
The London-based company was acquired by Google in 2014.
In total, 1,123 people appear on the New Year list.
Other technology entrepreneurs and leaders named included:
- Dana Tobak, chief executive of fibre optic broadband firm Hyperoptic, who was made CBE for services to the digital economy
- Jacqueline de Rojas, president of techUK, which represents the UK’s technology industry, who becomes a CBE
- Jessica Butcher, co-founder of the augmented reality firm Blippar. She was made an MBE for digital technology and entrepreneurship.
Richard Wilson from the Independent Game Developers Association (Tiga) was made an OBE for services to the video game industry.
He said in a statement: “I am grateful, honoured and delighted to have been appointed an Officer of the Order of the British Empire in the New Year 2018 Honours List.”
British honours are awarded on merit, for exceptional achievement or service.