Artificial Intelligence in Regtech Market Report 2026

The artificial intelligence in regtech market size has grown exponentially in recent years. It will grow from $2.57 billion in 2025 to $3.51 billion in 2026 at a compound annual growth rate (CAGR) of 36.7%. The growth in the historic period can be attributed to increasing regulatory complexity, rising volumes of financial transactions, expansion of digital banking services, growing compliance cost pressures, adoption of data-driven governance tools.

The artificial intelligence in regtech market size is expected to see exponential growth in the next few years. It will grow to $12.33 billion in 2030 at a compound annual growth rate (CAGR) of 36.9%. The growth in the forecast period can be attributed to increasing demand for real-time regulatory intelligence, rising adoption of ai-driven fraud prevention, growing focus on cross-border compliance automation, expansion of explainable ai in regtech, increasing integration with enterprise risk systems. Major trends in the forecast period include increasing adoption of ai-powered compliance monitoring, rising use of automated regulatory reporting tools, growing deployment of AI-based risk analytics platforms, expansion of identity verification and aml solutions, enhanced focus on real-time compliance intelligence.

The increasing focus on fraud detection is expected to drive the growth of the artificial intelligence (AI) in regtech market in the coming years. Fraud detection involves using various techniques and technologies to identify and prevent fraudulent activities within a system or organization. AI in regtech leverages advanced algorithms and machine learning methods to analyze large volumes of data from multiple sources, providing organizations with powerful tools to proactively detect and prevent fraud. This helps reduce financial losses and ensures compliance with regulatory requirements. For example, in September 2024, the Federal Bureau of Investigation (FBI), a US-based national law-enforcement agency, reported that in 2023, losses from cryptocurrency fraud exceeded $5.6 billion, representing a 45% increase compared to 2022. As a result, the growing emphasis on fraud detection is fueling the expansion of AI in the regtech market.

Leading companies in the artificial intelligence-driven regtech market are developing innovative technologies, such as regulatory knowledge automation, to optimize compliance processes. Regulatory knowledge automation is a technology solution that autonomously identifies and manages regulatory requirements tailored to a specific business, enhancing compliance efficiency by minimizing the need for manual updates and oversight as regulations evolve. For example, in March 2023, Ascent Compliance Inc., a US-based tech company, introduced a compliance confidence scorecard. This tool is designed to help organizations evaluate their readiness in key compliance areas. It provides a structured approach to assess efficiency in areas like entity mapping, obligation management, regulatory monitoring, and change management. By asking targeted questions, the scorecard helps users determine how well their organizations identify and manage legal obligations, stay updated on regulatory changes, and create effective systems for tracking compliance and managing tasks.

In January 2023, CUBE, a leading automated regulatory intelligence company headquartered in the UK, finalized the acquisition of The Hub for an undisclosed sum. This strategic move marks an effort by CUBE to expand its automated regulatory intelligence (ARI) technology, ultimately enhancing its ability to mitigate compliance costs and risks for its clientele. The Hub, a UK-based RegTech firm renowned for its innovative artificial intelligence solutions, specializes in capturing and monitoring unstructured data across the regulatory internet.

Major companies operating in the artificial intelligence in regtech market are IBM Corporation, Trulioo, Onfido, ComplyAdvantage, Behavox, FundApps, WorkFusion, Trunomi, Elliptic, Fund Recs, IdentityMind, Corlytics, Merlon Intelligence, AQMetrics, Ayasdi, CheckRecipient, KYC Exchange, Quantexa, Feedzai, Fenergo.

North America was the largest region in the artificial intelligence (AI) in regtech market in 2025. The regions covered in the artificial intelligence in regtech market report are Asia-Pacific, South East Asia, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence in regtech market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Taiwan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

The artificial intelligence in regtech market includes revenues earned by entities by services such as natural language processing (NLP), machine learning (ML) and data security and privacy compliance includes data encryption, and privacy impact assessments. The market value includes the value of related goods sold by the service provider or included within the service offering. The artificial intelligence in regtech market also includes sales of graphics processing units (GPUs), tensor processing units (TPUs), central processing units (CPUs), and field-programmable gate arrays (FPGAs). Values in this market are ‘factory gate’ values, that is the value of goods sold by the manufacturers or creators of the goods, whether to other entities (including downstream manufacturers, wholesalers, distributors and retailers) or directly to end customers. The value of goods in this market includes related services sold by the creators of the goods.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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