Copyright beijingbulletin
BEIJING, Oct. 31 (Xinhua) -- At a key forum in the Chinese capital Beijing, experts engaged in discussions on how AI is reshaping the financial sector and advancing high-quality development, while also underscoring the importance of risk management in this regard. "AI is accelerating its integration into all facets of the financial system and driving profound transformations," said Xiao Yuanqi, deputy head of the National Financial Regulatory Administration, during the Annual Conference of Financial Street Forum 2025 that concluded on Thursday. Themed "Global Financial Development in an Era of Innovation, Transformation and Restructuring," this year's event has fostered international financial exchange and cooperation. AI EMPOWERMENT "Financial product development costs have dropped considerably, and services have become more accessible. This allows customers to fulfill their financial needs more conveniently," Xiao noted. "At the same time, AI is generating greater growth potential and business opportunities across the financial system." In the insurance industry, Chinese underwriters apply this technology for risk alerts, remote sensing and damage assessment in cases of natural disasters affecting the country's vast but scattered farmlands and offshore wind power facilities. "Traditional risk assessment methods could induce high operational costs and safety risks. AI has brought profound changes to China's insurance sector, by enabling more efficient claims processing," said Zhao Peng, president of the People's Insurance Company (Group) of China Limited (PICC). He added that PICC's AI-driven insurance solutions have served over 80 million farmers and some 260 offshore wind power projects across the country. Commercial banks are also adopting AI, with many already deploying large-scale models to extract core information from extensive regulations and datasets. This enhances due diligence, optimizes financial services and shortens disbursement times. Notably, international banking group Standard Chartered PLC has partnered with Alibaba Cloud since July this year -- utilizing Chinese AI technology to deliver localized customer services in the world's second-largest economy. "China has emerged as a global leader in innovation. The partnership enhances service efficiency and user experience, optimizes personal sales recommendations and automated compliance, and strengthens fraud detection," said Maria Ramos, group chair of Standard Chartered PLC. RISK MANAGEMENT Experts also pointed out that AI also introduces risks to the financial sector. Ethical concerns include worries that the technology could lead to job losses and exacerbate the global digital divide. Dilma Rousseff, president of the New Development Bank (NDB), said that, in line with the Global Artificial Intelligence Governance Initiative proposed by China, NDB views AI as a global public good that should reflect the will and voices of all nations, particularly those in the Global South. She advocated using AI to advance inclusive finance. However, some participants raised concerns that large-scale models might be technically biased themselves and lead to improper conclusions. Others worry about management risks, such as breaches of client privacy and the potential misuse of AI in committing financial crimes and launching cyberattacks. "We must take unified action to develop interoperable standards for safe, transparent and responsible AI applications and data sharing," said Ramos. She added that such standards would offer clear guidance for banks, boost consumer confidence and reassure regulators. Ramos also highlighted China's role in proposing AI initiatives that foster innovation and build trust. Leo Yin, president of Deutsche Bank China, said that embracing technological innovation does not marginalize human roles. He called for human-machine collaboration and a workable governance framework to address AI-related risks. "We must maintain our reverence for risk, our commitment to responsibility and our pursuit of long-term value," said Yin.
