Tiger Brokers embraces DeepSeek as Chinese brokerages pounce on AI

Online broker Tiger Brokers has integrated DeepSeek‘s AI model into its chatbot platform, marking a significant development in the Chinese financial sector’s adoption of artificial intelligence. DeepSeek, a Chinese AI startup, has gained attention for developing its R1 model at a fraction of the cost of Western competitors, prompting widespread adoption among Chinese financial institutions.

The big picture: The integration of DeepSeek-R1 into Tiger Brokers’ TigerGPT platform represents a broader trend of Chinese financial institutions racing to implement AI solutions.

• At least 20 Chinese brokers and fund managers, including Sinolink Securities and CICC Wealth Management, have begun integrating DeepSeek models into their operations
• The AI implementation spans various functions, from research and risk management to investment decisions and client interactions
• Tiger Brokers’ upgraded TigerGPT will be available free of charge to users in mainland China and Singapore

Market impact and industry transformation: UBS projects that rapid AI adoption will drive a 24% increase in financial IT spending, equivalent to 69 billion yuan ($9.49 billion) over five years.

• An index tracking Chinese fintech companies has surged 17% this month, approaching record highs
• Technology vendors like Hundsun Technologies and Northking Information Technology are expected to benefit from increased IT spending
• The financial industry is particularly suited for AI transformation due to its data-intensive nature and high proportion of language-related tasks

Implementation and benefits: Financial institutions are reporting significant improvements in efficiency and capability through DeepSeek integration.

• CICC Wealth Management claims the DeepSeek R1 model has potential to improve information processing efficiency by 90%
• Tiger Brokers’ CEO Wu Tianhua emphasizes that the AI implementation is delivering real impact rather than serving as a marketing tool
• The DeepSeek model enhances logical reasoning abilities and market analysis capabilities, providing insights valuable even to experienced traders

Technical challenges and adaptation: Financial institutions are working to optimize their systems for AI integration.

• Zhongou Fund Management identifies standardizing internal databases as a key challenge for effective AI implementation
• Companies are conducting extensive meetings to discuss how to leverage DeepSeek’s models across various operational aspects
• Previously unutilized data is now being activated through AI applications, creating new opportunities for analysis and insight

Looking ahead: Industry transformation: The rapid adoption of DeepSeek’s technology signals a fundamental shift in China’s financial sector, with implications extending beyond immediate efficiency gains to potentially reshaping how financial services are delivered and managed. The success of this domestic AI solution could also influence global competition in financial technology development.