China’s DeepSeek-led AI revolution to boost financial sector profit: UBS

The recent breakthroughs in China’s artificial intelligence (AI) technology, as exemplified by DeepSeek, will bolster profits of the AI-intensive financial sector as it substantially reduces labour costs, according to UBS.

With every 10 per cent decrease in labour costs brought about by generative AI, the brokerage industry could see an 8 per cent increase in net profit, and the insurance industry could receive a 13 per cent boost, Craig Cao, a financial analyst at UBS Securities, said…