Artificial Intelligence and Financial Centers

Artificial intelligence is transforming financial services at a pace that exceeds the capacity of existing frameworks for measuring financial center performance. This paper, the third in the working paper series on measuring international finance, analyzes the intersection of AI ecosystems with the functional and enabling dimensions of financial center performance. It further proposes a dedicated AI ecosystem measurement framework and evaluates strategic approaches for financial center leadership regarding the AI agenda.

Drawing on the WAIFC AI Report 2026, the FSB and WEF's thought leadership on AI in financial services, and a global survey of flagship AI initiatives, this paper contends that AI influences every aspect of the International Financial Center (IFC) performance framework, extending beyond innovation capacity. AI governance quality is emerging as a component of regulatory quality, while AI infrastructure is becoming integral to connectivity. Additionally, AI-specific risks, such as third-party concentration and market correlation, necessitate explicit inclusion in resilience measurement. The paper proposes a seven-dimensional indicator framework for AI ecosystem performance to be incorporated into the IFC diagnostic dashboard.

The paper then examines four strategic choices that financial center leadership faces: whether to pursue AI-native positioning or a more measured AI-positioned approach; how to navigate the infrastructure ownership and stack sovereignty dimensions using a 2×2 control-versus-dependency matrix; when to move as a regulatory first-mover versus a fast-follower; and how to balance AI investment against a broader technology agenda encompassing digital assets, open finance, and quantum infrastructure. In each case, the paper presents the arguments on both sides before offering a recommended position.

The overarching strategic conclusion is that AI is best positioned not as a new identity that supersedes the strengths of existing financial centers, but as an integration layer that multiplies the value of all other activities — for experienced professionals and new entrants alike.