Generative Artificial Intelligence (AI) in Financial Services Market Report 2024

This Generative Artificial Intelligence (AI) In Financial Services market report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The generative artificial intelligence (AI) in financial services market size has grown exponentially in recent years. It will grow from $1.1 billion in 2023 to $1.44 billion in 2024 at a compound annual growth rate (CAGR) of 30.7%. The growth observed in the historic period can be attributed to factors such as the rise of digital transformation, increased data availability, growing demand for personalization, enhanced operational efficiency, and increased investment in technology.

The generative artificial intelligence (AI) in financial services market size is expected to see exponential growth in the next few years. It will grow to $4.24 billion in 2028 at a compound annual growth rate (CAGR) of 31%. The anticipated growth during the forecast period can be attributed to factors such as the expanding use of generative AI in fraud detection and prevention, improved reporting capabilities, the globalization of financial services, increased collaboration with fintechs, and rising AI literacy. Key trends for this period include the development of collaborative AI solutions, personalized financial products, wider adoption of AI solutions, AI-driven investment strategies, and integration with blockchain technology.

The rise in financial fraud is anticipated to drive the growth of the generative artificial intelligence (AI) market in financial services. Financial fraud involves deceptive practices aimed at gaining financial advantage or causing loss. The increase in financial fraud is attributed to the expansion of digital financial services, the growing use of online platforms, and more sophisticated fraud techniques. Generative AI can simulate real-world scenarios, including fraudulent activities, by creating synthetic datasets. These datasets help in training and testing fraud detection systems, enhancing their ability to identify emerging fraud tactics while safeguarding customer data. For example, the Federal Trade Commission reported $10 billion in financial losses due to fraud in the US, up by $1.2 billion from the previous year. This surge in financial fraud is fueling the growth of the generative AI market in financial services.

Key players in the generative AI market for financial services are developing advanced technologies to enhance fraud detection and prevention. These technologies include generative AI tools that produce realistic, data-driven content and automate complex tasks. For instance, in April 2024, Hapax, a US-based financial services startup, introduced a Generative AI Tool designed specifically for the financial sector. This platform uses generative AI to provide banks and similar institutions with industry-specific insights, decision-making capabilities, and resources. It aims to bridge the information gap between large and smaller financial institutions by offering an efficient, cost-effective solution for smaller banks and credit unions, which often lack the resources for advanced technology and skilled personnel.

In June 2023, Ramp, a US-based finance automation company, acquired Cohere.io for an undisclosed sum. This acquisition is part of Ramp's strategy to enhance its services with generative AI capabilities. Cohere.io, a Canadian firm, specializes in integrating generative artificial intelligence into financial services.

Major companies operating in the generative artificial intelligence (AI) in financial services market are Google LLC, Microsoft Corporation, JPMorgan Chase & Co., Amazon Web Services Inc.​, Wells Fargo, Citigroup Inc., Intel Corporation, IBM Corporation, American Express Banking Corp., Morgan Stanley, Goldman Sachs, Salesforce Inc., Fidelity Investments, Capgemini, Mastercard International Inc., Charles Schwab Corp., Cognizant, Infosys Ltd., HSBC Holdings Plc, Broadridge Financial Solutions Inc., Zeta Global, Simform Solutions, Narrative Science​, Miquido, Zapata Computing Inc.

North America was the largest region in the generative artificial intelligence (AI) in financial services market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the generative artificial intelligence (AI) in financial services market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the generative artificial intelligence (AI) in financial services market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in financial services involves the use of advanced machine learning models that can create new content or solutions across various functions within the industry. These AI systems are capable of generating synthetic data, simulating market scenarios, developing personalized financial products, and aiding decision-making by predicting trends, risks, and opportunities. Applications of generative AI in financial services include automated trading, fraud detection, customer service through chatbots, personalized financial advice, and risk assessment.

The primary components of generative AI in financial services include solutions and services. Generative AI solutions consist of specific AI-driven tools or applications designed to automate and enhance financial processes such as risk assessment, investment analysis, and personalized financial planning. These solutions can be deployed both on the cloud and on-premises and are utilized for tasks like credit scoring, fraud detection, risk management, forecasting, and reporting.

The generative AI in financial services market research report is one of a series of new reports that provides generative AI in financial services market statistics, including generative AI in financial services industry global market size, regional shares, competitors with a generative AI in financial services market share, detailed generative AI in financial services market segments, market trends and opportunities, and any further data you may need to thrive in the generative AI in financial services industry. This generative AI in financial services market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The generative artificial intelligence (AI) in financial services market consists of revenues earned by entities by providing services such as automated financial reporting, risk modeling and stress testing, algorithmic trading strategies and synthetic data generation. The market value includes the value of related goods sold by the service provider or included within the service offering. The generative artificial intelligence (AI) in financial services market also includes sales of robo-advisors, risk assessment software, customer interaction bots and financial document automation tools. 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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