Powell has initially signed on loan with Hull until the end of the season, but his contract at Manchester United is set to expire in the summer.
And Bruce is hoping that the 21-year-old will do enough during his time with the Tigers to earn a long-term contract with his side.
"We’ve brought in a very good young player in Nick Powell," he said. "That’s not just with the short-term in mind, it’s one we look at and ask can we make it long-term?
“I think everybody is aware of the talent the boy has got and we welcome him here. We hope that he can enhance us because he’s a good, young British player."
Powell was regarded as one of the brightest youngsters in English football as a teenager, but his career has stalled more recently.
The attacking midfielder has been on loan at both Wigan Athletic and Leicester City in recent seasons, but he has failed to make much of an impression at either club.
The England youth international has made two senior appearances for United this term, but it seems unlikely that he will be offered a new deal by the Red Devils.
Powell joins Hull with Bruce’s men fighting it out for promotion in the Championship.
The Tigers are currently top of the second tier table, but they have Middlesbrough hot on their heels.