China Is Quickly Eroding America's Lead in the Global AI Race
In Europe, the Middle East, Africa and Asia, users ranging from multinational banks to public universities are turning to large language models from Chinese companies such as startup DeepSeek and e-commerce giant Alibaba as alternatives to American offerings such as ChatGPT.
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Associated Press
30 minutes ago
- Associated Press
Hong Kong banks showed moderate balance sheet growth amid global uncertainty in 2024, KPMG report finds
Disciplined cost management, risk vigilance, and digital innovation underpin sector resilience HONG KONG SAR - Media OutReach Newswire - 2 July 2025 – Hong Kong's banking sector demonstrated steady growth and operational resilience in 2024, despite ongoing global economic headwinds. This is according to the newly launched KPMG Hong Kong Banking Report, which provides an in-depth analysis of the city's banking performance in 2024 and explores the major trends shaping its future, ranging from geopolitical and credit risk to digital asset innovation and AI transformation. The report reveals that the total assets of all surveyed licensed banks in Hong Kong rose by 4.5% to HK$24 trillion in 2024. Operating profit before impairment charges increased 7.8% to HK$318 billion, as banks continued to prioritise cost discipline and operational efficiency in the face of subdued loan demand and stable, but slightly compressed, net interest margins. Paul McSheaffrey, Senior Banking Partner, Hong Kong SAR, KPMG China, commented: 'Despite the challenging macroeconomic environment and the impact of US-China trade tensions, Hong Kong's banks have remained resilient. The sector's long-standing focus on prudent risk management, capital discipline, and ongoing investment in digital transformation has helped it adapt to volatility and maintain international competitiveness.' While total loans and advances reduced by 2.3% in 2024, total customer deposits increased by 4.1%. Asset quality came under pressure, with the sector's impaired loan ratio rising from 1.65% to 2.15%, reflecting the ongoing challenges in commercial real estate and the broader property sector. However, most banks have continued to exercise proactive risk management, including portfolio diversification and the adoption of digital tools to strengthen early risk detection. In line with KPMG's prediction in its 2024 Hong Kong Banking Report, the banking sector continued to navigate a challenging environment shaped by US monetary policy uncertainty, geopolitical tensions and economic strains in the Chinese Mainland. Terence Fong, Head of Chinese Banks, Hong Kong SAR, KPMG China, says, 'While Hong Kong's economy showed resilience in 2024, recent developments highlight the importance of continued vigilance. The escalation of reciprocal tariffs between the US and China since April 2025 has heightened downside risks for Hong Kong's trade-oriented economy and clouded the economic outlook. Continued vigilance will be crucial as banks navigate ongoing geopolitical uncertainty and macroeconomic challenges. Prudent capital management, agile pricing, and a renewed focus on emerging opportunities in Asia will be key to supporting sustainable growth.' The report also highlights the sector's progress in digital innovation. The Hong Kong Monetary Authority (HKMA) has been at the forefront of applications of blockchain technology for banks, with Project Ensemble serving as a landmark initiative exploring the use of wholesale CBDC (wCBDC) to facilitate the settlement of tokenised assets. On the retail side, the e-HKD initiative is progressing into its second phase, with the HKMA testing real-world applications of a retail CBDC. The HKMA has also finalised a regulatory framework for stablecoins which will provide better protection for the general public and investors. Banks in Hong Kong are also accelerating the adoption of artificial intelligence, particularly agentic AI, to enhance efficiency, risk management, and compliance. Angel Mok, Partner, Financial Services Technology Consulting, Hong Kong SAR, KPMG China, says, 'Agentic AI solutions have evolved faster than expected. While banks in Hong Kong remain cautious about potential risks, they are generally enthusiastic about Agentic AI and are adopting it at an increasing pace. Banks that take a strategic, data-driven approach to implementation will be well-positioned to lead in an increasingly competitive landscape.' Jia Ning Song, Head of Banking and Capital Markets, Hong Kong SAR, KPMG China, says, 'AI is already delivering tangible value for Hong Kong banks with quantifiable benefits. However, it is imperative that banks adequately address concerns around governance, risk, and trust. Building trusted AI systems is now essential for maintaining public confidence and ensuring the long-term sustainability of Hong Kong's banking system. Institutions further along in their digital journeys may be better positioned, while others may need to address foundational gaps first before scaling their AI initiatives.' Hashtag: #KPMG The issuer is solely responsible for the content of this announcement. About KPMG KPMG in China has offices located in 31 cities with over 14, 000 partners and staff, in Beijing, Changchun, Changsha, Chengdu, Chongqing, Dalian, Dongguan, Foshan, Fuzhou, Guangzhou, Haikou, Hangzhou, Hefei, Jinan, Nanjing, Nantong, Ningbo, Qingdao, Shanghai, Shenyang, Shenzhen, Suzhou, Taiyuan, Tianjin, Wuhan, Wuxi, Xiamen, Xi'an, Zhengzhou, Hong Kong SAR and Macau SAR. It started operations in Hong Kong in 1945. In 1992, KPMG became the first international accounting network to be granted a joint venture licence in the Chinese Mainland. In 2012, KPMG became the first among the 'Big Four' in the Chinese Mainland to convert from a joint venture to a special general partnership. KPMG is a global organisation of independent professional services firms providing Audit, Tax and Advisory services. KPMG is the brand under which the member firms of KPMG International Limited ('KPMG International') operate and provide professional services. 'KPMG' is used to refer to individual member firms within the KPMG organization or to one or more member firms collectively. KPMG firms operate in 142 countries and territories with more than 275,000 partners and employees working in member firms around the world. Each KPMG firm is a legally distinct and separate entity and describes itself as such. Each KPMG member firm is responsible for its own obligations and liabilities. Celebrating 80 years in Hong Kong In 2025, KPMG marks '80 Years of Trust' in Hong Kong. Established in 1945, we were the first international accounting firm to set up operations in the city. Over the past eight decades, we've woven ourselves into the fabric of Hong Kong, working closely with the government, regulators, and the business community to help establish Hong Kong as one of the world's leading business and financial centres. This close collaboration has enabled us to build lasting trust with our clients and the local community – a core value celebrated in our anniversary theme: '80 Years of Trust'.
Associated Press
30 minutes ago
- Associated Press
Best Employer of Record companies for 2025 revealed by Employ Borderless
07/02/2025, Singapore, Singapore // PRODIGY: Feature Story // The 2025 rankings highlight category specialists who perform well in distinct markets and business report arrives as the global EOR market value is projected to grow from USD 5.23 billion in 2024 to USD 9.17 billion by 2033, according to Business Research Insights. Companies are increasingly selecting EOR providers based on specific regional expertise and business model alignment rather than generic solutions. Employ Borderless announces its annual assessment of the top Employer of Record services, identifying seven industry leaders after evaluating 25+ global employment platforms. The 2025 rankings highlight category specialists who perform well in distinct markets and business requirements. This report arrives as the global EOR market value is projected to grow from USD 5.23 billion in 2024 to USD 9.17 billion by 2033, according to Business Research Insights. Companies are increasingly selecting EOR providers based on specific regional expertise and business model alignment rather than generic solutions. 'The EOR market has changed significantly with providers now specializing in distinct niches rather than offering one-size-fits-all solutions,' said Robbin Schuchmann, Co-founder of Employ Borderless. 'This year's analysis reveals clear category leaders who perform well in specific regions, company sizes, and operational requirements.' Following months of platform analysis, pricing comparisons, and user experience testing, Employ Borderless identifies the category-leading Employer of Record services for 2025. Paul Jansen, Co-founder of Employ Borderless, noted the industry's movement toward specialization. 'The most successful EOR providers in 2025 have stopped trying to be everything to everyone. Instead, they've focused on specific strengths, whether that's regional compliance expertise, particular company sizes, or unique service offerings.' Research highlights from the 2025 evaluation include the following findings. Rippling secured the EU operations category by establishing its European headquarters in Dublin and developing a platform that integrates HR, IT, and finance functions. Companies report improved operational efficiency when using a single system rather than managing separate platforms. Remote earned recognition in IP protection through SOC 2 certification and its Remote IP Guard technology. Organizations handling sensitive information prefer Remote's direct entity ownership model over third-party partnerships. Multiplier captured the Asia-Pacific category with focused expertise in Singapore, Australia, and Japan markets. The platform's same-day onboarding capability has attracted companies requiring rapid international expansion. Remofirst claimed the startup category by simplifying international hiring processes. Small businesses favor the platform's five-day setup timeline and absence of hidden fees during onboarding. Deel achieved worldwide coverage leadership through local entities in 120 countries. Companies frequently cite the contractor-to-employee conversion feature as a key differentiator for workforce flexibility. JustWorks captured the US operations category with its integrated approach combining EOR and domestic PEO services. Small businesses favor the platform's ability to manage both international and domestic employees from a single system, with many citing the streamlined onboarding process as a key advantage. Oyster won the transparency category through clear pricing structures and user interface design. Companies value the predictable fee model and recent addition of global payroll capabilities for existing international operations. 'These providers represent the new reality of EOR services,' concluded Robbin Schuchmann. 'Success now depends on deep specialization rather than broad mediocrity. Companies that match their specific needs with the right category leader will see significantly better outcomes than those selecting based on name recognition alone.' The shift toward specialized EOR providers reflects broader changes in how companies approach international expansion. Rather than one-size-fits-all solutions, businesses increasingly value providers who understand their particular challenges, whether regulatory, operational, or financial. For complete analysis methodology and detailed provider comparisons, including specific use cases for each category winner, visit the Employ Borderless website. About Employ Borderless Employ Borderless conducts independent research on global employment solutions, providing fact-based evaluations to help businesses make informed decisions about international workforce expansion. The organization maintains editorial independence and accepts no compensation from reviewed providers. Contact information Media inquiries and research questions. Robbin Schuchmann at [email protected]. This content was first published by KISS PR Brand Story. Read here >> Best Employer of Record companies for 2025 revealed by Employ Borderless
Yahoo
32 minutes ago
- Yahoo
How AI Agents can transform banking operations: 3 principles for ‘endgame', not ‘game over'
AI Agents – a sophisticated type of software capable of planning, reasoning, and executing tasks independently – are fast becoming a serious consideration for banks looking to streamline operations and boost resilience. With organisations like the World Economic Forum (WEF) touting the transformational potential of Agentic AI, banking leaders must focus not only on the technology itself but getting it used effectively. Will AI Agents on balance displace banking jobs, or will they become integral to a new hybrid human-machine operating model? In other words, is it 'game over' for bankers or is this simply the 'endgame'? In the banking sector, where the cost of error is high and regulatory obligations are extensive, finding the answer hinges on more than just technological capability. Instead, it requires a clear understanding of how AI fits into existing systems, how it learns, and most crucially, how it understands the organisation it's deployed in. For AI Agents to be meaningfully integrated into core business operations, they need more than a generalised grasp of the world (what we might call a 'Public World Model'). Agents also require a 'Private World Model', a real-time, contextual understanding of the specific business environment they serve. This Private World Model is what enables AI to move beyond basic task automation and operate with the discretion, safety, and strategic alignment necessary for use in high-stakes settings like risk, compliance, or customer operations. Building it takes more than data. It takes a structured approach that brings business context into every layer of AI deployment. Banks seeking to move from early experimentation to strategic, at-scale adoption should follow these three key principles: For AI Agents to deliver value, they must be embedded into the operating model, not bolted on as isolated tools. That means defining their purpose, boundaries, and how they interact with human teams from the outset. In practice, this requires cross-functional alignment. That means bringing together risk, compliance, technology, and business operations to ensure governance is embedded and responsibilities are clearly allocated. It's about answering the operational questions before the technical ones. For example: What will the agent do? What decisions can it make? How will performance be measured? How will human oversight work? In highly regulated banking environments, this level of discipline is essential. Poorly integrated AI risks duplication, degradation of service quality, or worse, regulatory breaches and reputational harm. Successful AI programmes treat these issues as first-order design considerations, not afterthoughts. The temptation to adopt AI Agents quickly across the enterprise is understandable, but rarely effective. A more sustainable approach begins with well-defined use cases that offer a high return with manageable risk. One clear example is JPMorgan Chase's COiN (Contract Intelligence) platform, which uses AI to review commercial agreements. It reportedly cut error rates by 80% and freed up 360,000 hours of legal review time annually. This isn't a theoretical impact. It's measurable operational efficiency, delivered through structured implementation and ongoing oversight. Banks should look for similarly contained, repeatable tasks that are essential but burdensome. These create ideal environments for AI Agents to demonstrate value while allowing teams to build institutional knowledge and governance muscle before expanding into more complex areas. AI deployment is not a one-off exercise. As business needs change and regulatory frameworks evolve, AI Agents must adapt in parallel. That means embedding feedback loops and performance monitoring from day one. Unlike static software, AI systems learn from data, and that data changes. Ensuring AI Agents remain aligned with business strategy requires structured retraining, robust monitoring, and clearly defined escalation routes when things go wrong. Change management for the human workforce is equally important. As tasks evolve, new skills and new ways of working are needed. Supporting employees through this transition is critical to building trust in AI, ensuring adoption, and maintaining operational integrity. Retail banks must act now to embrace AI Agents before they become the industry standard, rather than a competitive edge. The prize is substantial for those who are first adopters: greater efficiency, faster decision-making, more consistent compliance, and more responsive customer operations. But the route to get there is not through a single piece of technology. It's through a deliberate strategy grounded in business context and operational clarity. By focusing on integration, strategic implementation, and continuous learning, banks can shift from seeing AI as a bolt-on and start treating it as a vital core capability. Rather than triggering 'game over' for bankers, AI's real potential lies in shaping a more agile, resilient and scalable workforce where humans and machines complement one another. That's an endgame worth striving for. David Bholat is Professional and Financial Services Director at Faculty "How AI Agents can transform banking operations: 3 principles for 'endgame', not 'game over'" was originally created and published by Retail Banker International, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. 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