According to a recent analysis, the global Artificial Intelligence in BFSI market size is forecast to reach USD 68.23 Billion from USD 5.64 Billion in 2020, at a CAGR of 36.5% over 2021-2028. Increasing adoption of AI in BFSI for fraud prevention applications is expected to drive global Artificial Intelligence in BFSI market growth.
Artificial Intelligence helps banks to detect fraud, identify laundering patterns, predict future trends based on analysis of past behavior of customers, and also in making potential customer recommendations. These advantages associated with AI in banking operations, is expected to offer lucrative opportunities for the global AI in BFSI market growth.
Artificial intelligence aids in increasing revenue, boosting potential of profit, while reducing costs. It also aids financial institutions to optimize salary budget by eliminating the need to hire new employees for repetitive tasks. Artificial Intelligence bots, biometric fraud detection mechanisms, and digital payment advisors are resulting in high quality of services to a wider customer base. Increasing robotic process automation in rule-based tasks, is streamlining tiresome tasks, and aiding in avoiding errors, which in turn is expected to boost AI in BFSI market growth through 2028.
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Some Key Highlights in the Report
- Based on solution, Fraud detection & prevention segment is forecast to contribute significantly to the market revenue share through 2028. The fraud detection and prevention units in BFSI companies are extensively utilizing AI as NLP algorithms can detect discrepancies, inconsistencies, thereby ensuring fraud prevention.
- Based on technology, Machine learning segment is expected to exhibit a notable growth rate through 2028. Increasing adoption of ML in banking companies to enhance their business by improving efficiency and performance of BFSI activities will drive demand among BFSIs.
- Based on application, the risk management segment is expected to observe fastest growth through 2028. Financial institutions handle sensitive information on a daily basis and are prone to risk. AI is proving to be a major game changer in risk management as it streamlines management of those risks in a growing competitive industry. Growth in development of new algorithms to completely automate the risk management process will further fuel segmental growth.
- In the regional landscape, North America accounted for a major chunk of the global Artificial Intelligence in BFSI market in 2020 and is forecast to gain major traction through 2028 on account of technological advancement and high investment in AI in the region. Increasing focus of commercial banks in the region on improving customer services and increasing revenue will further proliferate AI in BFSI sector.
- Key players operating in the global AI in BFSI market include Google LLC, CognitiveScale, Inc., Amazon Web Services (AWS), Inc., Descartes Labs, Inc., Intel Corporation, Avaamo, Inc., Baidu, Inc., Microsoft Corporation, Oracle Corporation, and SAP SE, among others.
For the purpose of this study, Emergen Research has segmented the global Artificial Intelligence in BFSI market on the basis of offering, solution, technology, application, and region:
- Offering Component Outlook (Revenue, USD Million; 2018–2028)
- Solution Outlook (Revenue, USD Million; 2018–2028)
- Fraud Detection & Prevention
- Customer Relationship Management
- Anti-money Laundering
- Data Analytics & Prediction
- Technology Outlook (Revenue, USD Million; 2018–2028)
- Machine Learning
- Context Aware Processing
- Natural Language Processing (NLP)
- Deep Learning
- Application Outlook (Revenue, USD Million; 2018–2028)
- Risk Management
- Financial Advisory
- Compliance & Security
- Back Office / Operation Customer Service
- Regional Outlook (Revenue, USD Million; 2018–2028)
- North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of APAC
- Latin America
- Rest of LATAM
- Middle East & Africa
- Saudi Arabia
- Rest Of MEA
- North America
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