Financial Services AI Spending Rises, Yet Most Initiatives Still Can’t Show Tangible Business Value

The Quinlan and Associates report highlights a critical disconnect in Asia's financial services sector: while 95% of institutions are exploring or have adopted AI, 71% face challenges in demonstrating ROI. This points to a broader issue beyond just technology adoption. Many firms in markets like Singapore and Hong Kong are likely rushing AI deployment without clear strategies, treating risk as an afterthought, and using outdated governance models. This approach leads to fragmented efforts and underutilized tools, as seen by only 21.1% of deployed initiatives fully achieving their objectives. The problem is not AI itself, but how it is integrated into existing business frameworks. For Asian fintechs and traditional banks, the lesson is clear: a robust AI strategy must precede tool selection. Embedding risk management early and developing adaptive governance models are crucial. Without these foundational elements, the projected 12% annual growth in AI spending to US$132 billion by 2030 will largely be inefficient. The focus needs to shift from simply deploying AI to strategically integrating it to solve specific business problems and measure tangible outcomes. This is particularly relevant as assistive AI use cases like chatbots and copilots become more common, and firms eye agentic AI, where the stakes for effective governance are even higher.