Taiwan's Financial Supervisory Commission (FSC) published the results of an industry survey on artificial intelligence (AI) use, finding that 126 of 383 surveyed financial and peripheral institutions had implemented AI (33%, up from 29% in 2024) and that generative AI adoption is increasing, with institutions primarily using AI to improve efficiency, reduce manpower costs and enhance customer experience. Banks reported the highest AI adoption rate (87%), followed by life insurers (67%) and property insurers (45%). Use cases were concentrated in internal administrative operations, intelligent customer service and financial crime prevention, with the most common technologies being natural language processing and large language models (31%), machine learning (28%) and robotic process automation (23%). Generative AI was in use at 61 institutions, representing 48% of AI adopters (up 21 percentage points year on year), mainly for internal administrative operations (39%) and intelligent customer service (15%), with key challenges cited as output instability or inaccuracy, data security and privacy, and compliance issues; the FSC also noted low levels of automated decision-making and widespread monitoring for performance drift. Looking ahead, 179 institutions (47% of the sample) intend to adopt or expand AI, and respondents highlighted anti-fraud AI, localized financial-sector large language models and risk management applications as areas suitable for joint development. The FSC has initiated cooperation through the FinTech Industry Alliance and said it will continue to monitor AI adoption.