Trusted AI Emerges as the New Battleground for Global Financial Hubs, DBS Group Research Finds
The future of global finance will be shaped not only by capital, talent, and market size but increasingly by the ability of financial hubs to deploy artificial intelligence responsibly and at scale. According to a new report released by DBS Group Research, financial centres around the world are entering a new era of competition where success depends on combining advanced AI capabilities with strong governance frameworks, digital infrastructure, and institutional trust.
As AI transitions from a promising technology to a foundational component of financial systems, the report argues that the world’s leading financial hubs must evolve beyond traditional measures of competitiveness. Instead, they must become what DBS Group Research describes as “Trusted AI Financial Hubs” — financial ecosystems capable of integrating AI deeply into financial services while maintaining the transparency, accountability, and governance necessary to inspire confidence among institutions, regulators, businesses, and consumers.
Released on 20 May 2026, the report introduces a new framework for assessing global financial centres and highlights how AI is rapidly becoming a critical determinant of financial leadership. Through the inaugural Global AI Financial Hub Index (GAIFHI), DBS Group Research provides a comprehensive assessment of how major financial centres are positioned to compete in an increasingly AI-driven global economy.
AI Moves to the Core of Financial Infrastructure
Artificial intelligence has already begun transforming nearly every aspect of the financial services industry. What was once viewed as an experimental technology is now embedded within critical functions that support modern financial systems.
Financial institutions are increasingly relying on AI-powered tools to improve credit assessment, detect fraud, manage risk, enhance compliance processes, optimize trading strategies, and deliver personalized customer experiences. The technology’s ability to process vast quantities of data and generate insights in real time is reshaping how financial institutions operate and compete.
According to the report, this widespread adoption marks a significant shift in the role of AI within financial services. Rather than serving as a supplementary technology, AI is becoming part of the industry’s core infrastructure.
As a result, the report suggests that future financial leadership will be determined by more than technological innovation alone. Financial hubs must also demonstrate the governance capabilities required to ensure AI systems are trustworthy, transparent, and aligned with regulatory expectations.
The findings indicate that financial centres capable of balancing innovation with accountability will have a competitive advantage in attracting investment, talent, and cross-border financial activity.
Defining the Trusted AI Financial Hub
A central concept introduced by the DBS Group Research report is the idea of the “Trusted AI Financial Hub.”
The report defines this as a financial centre that combines deep AI adoption with institutional trust infrastructure robust enough for AI-driven financial decisions to be recognized and accepted across organizations, jurisdictions, and international markets.
In practical terms, this means financial hubs must establish environments where AI-powered decisions can be trusted not only by domestic participants but also by international stakeholders. Achieving this level of trust requires a combination of regulatory clarity, governance frameworks, secure digital infrastructure, and strong institutional credibility.
As AI becomes increasingly involved in high-value financial decisions, ranging from lending and investment management to compliance and risk monitoring, confidence in the systems that govern these technologies becomes a key competitive asset.
The report argues that trusted AI ecosystems will play an increasingly important role in facilitating global flows of capital, data, and financial services.
Introducing the Global AI Financial Hub Index
To measure how well financial centres are positioned for this new era, DBS Group Research developed the inaugural Global AI Financial Hub Index (GAIFHI).
The index evaluates financial hubs using a comprehensive five-pillar framework designed to capture both technological capability and governance readiness.
The five pillars include:
- AI integration across financial institutions and markets
- Trust and governance infrastructure
- Digital financial infrastructure
- Talent and innovation ecosystems
- AI-driven market outcomes
Together, these dimensions provide a holistic assessment of a financial centre’s readiness to thrive in an AI-powered financial landscape.
Rather than focusing solely on innovation metrics or economic scale, the index seeks to understand how different elements interact to create sustainable competitive advantages. The framework recognizes that AI adoption alone is insufficient without the supporting governance structures needed to ensure trust and accountability.
The GAIFHI therefore offers policymakers, regulators, and financial institutions a new lens through which to evaluate competitiveness in an increasingly technology-driven financial sector.
Measuring Governance Through AI Governance Intensity
In addition to the overall index, the report introduces a new metric known as AI Governance Intensity per USD Trillion Intermediated.
This measurement assesses the strength of AI governance relative to the volume of financial activity conducted through a particular financial hub.
The metric is intended to provide a more nuanced understanding of governance effectiveness by considering not only the existence of regulatory frameworks but also their scale relative to financial market activity.
As financial centres grow larger and more complex, maintaining strong governance becomes increasingly challenging. The AI Governance Intensity metric helps identify which hubs are successfully balancing scale with effective oversight.
The report suggests that this balance will become increasingly important as AI applications continue to expand throughout global financial markets.
Evaluating the World’s Leading Financial Centres
The study assesses 15 major financial centres and innovation ecosystems across North America, Europe, Asia, and the Middle East.
Among the hubs analyzed are Singapore, Abu Dhabi, Hong Kong, London, Mumbai, New York, San Francisco, Shanghai, Sydney, and Tokyo.
The research evaluates how various factors—including governance coherence, digital infrastructure, institutional AI adoption, talent availability, capital markets depth, and market outcomes—combine to shape competitiveness in the AI era.
The findings reveal that while traditional financial centres continue to enjoy significant advantages in terms of market scale and talent concentration, emerging leaders are demonstrating strengths in governance innovation, digital infrastructure, and regulatory agility.
Singapore Emerges as a Leading Trusted AI Financial Hub
Among open-market financial centres, Singapore emerges as the hub closest to achieving what the report describes as “full flywheel activation.”
The city-state receives high marks for its regulatory coherence, advanced digital identity infrastructure, institutional adoption of AI technologies, and strong international reputation for trust and governance.
These strengths position Singapore favorably as global financial markets increasingly prioritize trustworthy AI implementation.
The findings align closely with broader national economic objectives focused on strengthening Singapore’s role as a trusted destination for AI innovation and international financial services.
The report notes that Singapore’s integrated approach to regulation and technology development has created an environment where AI innovation can scale while maintaining confidence among regulators, businesses, and international investors.
This combination of technological sophistication and institutional trust provides a strong foundation for future growth.
New York Retains Global Leadership in AI Capability
Despite increasing competition, New York remains the world’s leading financial centre in terms of overall AI capability.
The city benefits from exceptional concentrations of AI talent, extensive capital markets, advanced financial institutions, and strong market outcomes.
Its ecosystem combines deep technological expertise with unparalleled financial scale, making it one of the most powerful centres for AI-driven financial innovation.
However, the report identifies governance fragmentation as a potential challenge.
The complexity created by multiple regulatory agencies can reduce the clarity of governance signals sent to international stakeholders. While New York’s capabilities remain unmatched in several areas, improving coordination across regulatory bodies could strengthen its position as a trusted AI hub.
London Accelerates Its AI Strategy
London also performs strongly in the assessment, supported by a rapidly evolving approach to AI governance.
The report highlights the city’s principles-based regulatory trajectory as a significant advantage in adapting to emerging technologies.
This approach allows regulators to encourage innovation while maintaining oversight and accountability.
However, London continues to face challenges associated with post-Brexit international recognition and cross-border market access. While these issues do not diminish its strengths as a global financial centre, they represent important considerations as competition among AI-enabled financial hubs intensifies.
The report suggests that London’s ability to strengthen international trust relationships will play a key role in its long-term competitiveness.
San Francisco Leads in Innovation and Talent
San Francisco stands out as the world’s premier concentration of AI talent and innovation capacity.
Home to many of the companies and research institutions driving advances in artificial intelligence, the region serves as a global engine for technological development.
The report notes that this concentration of expertise has translated into substantial innovation within financial infrastructure and AI applications.
However, San Francisco’s ecosystem differs from traditional financial centres because it is primarily innovation-led rather than intermediation-led.
While its technological capabilities are unmatched, the scale of financial activity occurring within the hub may limit its ability to generate the same level of globally recognized trust signals as larger financial centres such as New York or Singapore.
Nevertheless, its influence on the future direction of financial technology remains profound.
Asia’s Growing Influence in the AI Finance Era
One of the most notable findings from the report is the strong representation of Asian financial centres among the hubs assessed.
The region’s growing influence reflects substantial investments in digital infrastructure, payments innovation, AI deployment, and regulatory modernization.
Financial centres across Asia are increasingly demonstrating strengths in areas that are becoming critical to AI competitiveness. These include digital identity systems, real-time payment networks, regulatory experimentation, and public-private collaboration.
While established Western financial centres continue to dominate in terms of capital scale and talent concentration, the report suggests that the global competitive landscape is becoming more diversified.
As AI reshapes financial services, new forms of advantage are emerging, creating opportunities for a broader range of financial centres to compete on the global stage.
The Future of Financial Leadership
The DBS Group Research report concludes that the next phase of competition among global financial centres will be defined by trust as much as technology.
Financial hubs that successfully combine AI innovation with governance excellence, digital infrastructure, and institutional credibility will be best positioned to attract investment, facilitate cross-border financial activity, and lead the future of global finance.
As artificial intelligence becomes embedded in critical financial decisions, trust will no longer be a supporting factor—it will become a core source of competitive advantage.
The emergence of the Trusted AI Financial Hub concept reflects a broader transformation underway across global finance, one in which leadership is increasingly determined by the ability to scale innovation responsibly while maintaining confidence across markets, institutions, and borders.
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