PwC Report Highlights AI Spending Gap Among Financial Firms in Mainland China and Hong Kong
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Financial institutions in mainland China and Hong Kong are falling behind their global peers in artificial intelligence (AI) investments, despite recognizing the technology as a key driver of strategic transformation, according to a new PwC report.
The report, based on a survey of 201 financial services professionals and 20 in-depth interviews conducted between October 2025 and January 2026, found that banks, insurers, and asset and wealth management firms are increasingly using AI for applications such as customer service, fraud detection, and predictive analytics. Firms cited benefits including reduced risk, improved compliance, higher revenues, and lower costs.
Yet, investment in AI remains limited. 61% of surveyed institutions allocate just 10% or less of their technology budgets to AI, representing a 30–40% spending gap compared to global standards. The report identified three main barriers to greater AI adoption: limited data availability (30%), regulatory concerns (20%), and the need to prioritize existing core systems (14%).
“Financial institutions see AI as an unmissable opportunity to transform their operating models and service offerings,” said Matthew Phillips, PwC China financial services industry leader. “But long-term investment will be required to overcome the challenges to wider AI deployment.”
PwC’s findings suggest that while financial firms in the region are exploring AI’s potential, more substantial investment will be needed to catch up with global competitors and fully realize AI-driven strategic advantages.
Financial institutions in mainland China and Hong Kong are falling behind their global peers in artificial intelligence (AI) investments, despite recognizing the technology as a key driver of strategic transformation, according to a new PwC report.
The report, based on a survey of 201 financial services professionals and 20 in-depth interviews conducted between October 2025 and January 2026, found that banks, insurers, and asset and wealth management firms are increasingly using AI for applications such as customer service, fraud detection, and predictive analytics. Firms cited benefits including reduced risk, improved compliance, higher revenues, and lower costs.
Yet, investment in AI remains limited. 61% of surveyed institutions allocate just 10% or less of their technology budgets to AI, representing a 30–40% spending gap compared to global standards. The report identified three main barriers to greater AI adoption: limited data availability (30%), regulatory concerns (20%), and the need to prioritize existing core systems (14%).
“Financial institutions see AI as an unmissable opportunity to transform their operating models and service offerings,” said Matthew Phillips, PwC China financial services industry leader. “But long-term investment will be required to overcome the challenges to wider AI deployment.”
PwC’s findings suggest that while financial firms in the region are exploring AI’s potential, more substantial investment will be needed to catch up with global competitors and fully realize AI-driven strategic advantages.
