PwC Report: Financial Services Embrace AI, Reaping Short-Term Returns and Long-Term Value

PwC’s latest industry analysis report indicates that artificial intelligence technology is reshaping the landscape of the financial services industry in Mainland China and Hong Kong. The specialized research titled “AI Boosts Innovation and Upgrades in Mainland China and Hong Kong’s Financial Services” shows that institutions in banking, insurance, and asset and wealth management generally view AI as the core engine for strategic transformation, with its applications extending beyond traditional efficiency improvements.

Survey data reveal that over 80% of respondents have achieved significant benefits through AI deployment, with initial return on investment concentrated between 10% and 15%. Notably, financial institutions demonstrate strategic foresight when evaluating technological value—about 76% of respondents prioritize long-term benefits such as enhancing market position, innovating business models, and cultivating new growth points over short-term financial returns. This shift in mindset marks a transition of AI application in finance from a tool-based phase to a strategic phase.

At the application level, different sectors exhibit distinct characteristics: banks focus on optimizing asset quality through intelligent risk control systems; insurance companies aim to develop precise pricing models; asset and wealth management firms concentrate on personalized investment advisory services. A CTO of a state-owned bank revealed that after launching their intelligent investment advisory system, client asset allocation efficiency increased by 40%, while client attrition decreased by 25%. These breakthroughs from quantitative change to qualitative change confirm AI’s ability to reconstruct industry ecosystems.

Despite promising prospects, financial institutions still face multiple challenges. The report points out that data silos, insufficient algorithm interpretability, and a shortage of interdisciplinary talent are major obstacles. A CTO of an international insurance group in China stated that they are collaborating with universities to establish joint laboratories, focusing on overcoming model transparency issues, and cultivating cross-disciplinary talent who understand both finance and AI through internal rotation systems. This industry-university-research collaborative innovation model is becoming an important pathway to overcoming technical bottlenecks.