TLDR: A recent survey by Taiwan’s Financial Supervisory Commission (FSC) reveals that one-third of financial institutions have adopted Artificial Intelligence, with nearly half of these utilizing generative AI. The adoption is primarily aimed at boosting operational efficiency, reducing costs, and enhancing customer experience, despite challenges related to data security and output accuracy.
Taipei, Taiwan – A comprehensive survey conducted by Taiwan’s Financial Supervisory Commission (FSC) in April 2025, with results released on May 20, 2025, indicates a robust and growing adoption of Artificial Intelligence (AI) within the nation’s financial sector. The survey, which encompassed 383 financial and peripheral institutions, found that 126 institutions, representing 33% of those surveyed, have already integrated AI into their operations. This marks an increase from 29% in the previous year, highlighting a steady upward trend in AI integration.
Among the institutions that have adopted AI, a significant portion, 61 institutions (48%), are specifically utilizing generative AI technologies. This represents a substantial 21 percentage point increase from the prior year, underscoring the rapid embrace of advanced AI capabilities.
Sector-wise, banks are leading the charge in AI adoption with an impressive 87% implementation rate, followed by life insurance companies at 67% and property insurance companies at 45%. This tiered adoption suggests varying levels of readiness and strategic focus across different segments of the financial industry.
The primary motivations driving AI adoption are clear: enhancing operational efficiency (cited by 30% of respondents), reducing manpower costs (18%), and improving customer experience (15%). AI applications are predominantly concentrated in internal administrative operations, intelligent customer service, and financial crime prevention. The most commonly employed AI technologies include Natural Language Processing (NLP) and Large Language Models (LLMs) at 31%, Machine Learning at 28%, and Robotic Process Automation (RPA) at 23%.
For generative AI specifically, the main application areas are internal administrative operations (39%) and intelligent customer service (15%). However, the survey also brought to light key challenges faced by institutions, including concerns over the instability or inaccuracy of generative AI outputs, data security and privacy protection, and compliance-related issues.
Looking ahead, the future of AI in Taiwan’s financial sector appears promising, with 47% of the surveyed institutions (179 entities) expressing intentions to either adopt AI or expand their existing AI applications. Their focus areas for future implementation remain consistent: internal administrative operations, intelligent customer service, and combating financial crime.
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In a move to guide and regulate this technological shift, the FSC also issued the ‘Guidelines for Financial Industry’s Use of Artificial Intelligence (AI)’ on June 20, 2024. These guidelines provide a framework for financial institutions, emphasizing crucial aspects such as risk management, the prevention of algorithmic bias, and robust data protection measures, ensuring a responsible and secure AI integration across the industry.
