AI in BFSI Market Report 2024

This AI In BFSI 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 AI in BFSI market size has grown exponentially in recent years. It will grow from $52.54 billion in 2023 to $72.84 billion in 2024 at a compound annual growth rate (CAGR) of 38.6%. The growth observed in the historic period can be attributed to several factors such as the increasing demand for improved customer experience, the expansion of digital banking channels, the rise in automation of routine processes, the growing use of AI for credit scoring, and the increasing need for advanced investment strategies.

The AI in BFSI market size is expected to see exponential growth in the next few years. It will grow to $269.96 billion in 2028 at a compound annual growth rate (CAGR) of 38.8%. The anticipated growth in the forecast period can be attributed to several factors such as the growing need for advanced fraud detection, a heightened focus on cybersecurity, increasing demand for automated customer service, the rising use of AI for portfolio risk assessment, and a growing emphasis on AI for financial forecasting. Key trends expected during this period include technological advancements, real-time data analysis, natural language processing, digital payment solutions, and enhanced fraud prevention systems.

The growing use of AI to enhance efficiency is expected to drive the growth of the AI in the BFSI (Banking, Financial Services, and Insurance) market in the future. Artificial intelligence (AI) refers to a range of technologies and algorithms that allow machines to mimic human intelligence, performing tasks such as problem-solving, learning from data, and decision-making. The increasing adoption of AI to boost efficiency is driven by factors like advancements in computing power and cloud technology, which enable faster processing and scalability of AI applications. AI algorithms analyze large datasets to identify patterns, automate processes like fraud detection, personalize financial services, and optimize investment decisions. For example, in April 2024, a report from Stanford University, a U.S.-based private research institution, revealed that the number of stars for AI-related projects on GitHub saw a significant rise in 2023, more than tripling from 4 million in 2022 to 12.2 million. As a result, the growing use of AI to improve efficiency is propelling the expansion of AI in the BFSI market.

Leading companies in the AI in BFSI market are focusing on developing advanced technologies such as predictive intelligence to offer banks deeper insights into customer behavior. Predictive intelligence involves using data analytics and machine learning to forecast future events and patterns based on historical data. For instance, in May 2024, Newgen Software, an India-based provider of digital transformation solutions, launched LumYn, a Generative AI-powered hyperpersonalization platform. Designed specifically for the banking sector, LumYn aims to enhance customer experiences and profitability by providing banks with deeper insights into customer needs, behaviors, preferences, and intents. The platform integrates predictive intelligence with advanced conversational AI, enabling banks to interact with customer data efficiently and develop solutions rapidly in a low-code environment.

In March 2023, Amelia, a US-based technology company, partnered with BuildGroup and Monroe Capital to secure financial capital and business leadership. This partnership is designed to accelerate the market adoption of Amelia's Trusted AI products, helping customers navigate the evolving AI landscape and chatbot news cycle. BuildGroup is a US-based AI-enabled SaaS company, and Monroe Capital is a US-based asset management firm.

Major companies operating in the AI in bfsi market are Amazon.com Inc., Google LLC, Microsoft Corporation, International Business Machines Corporation, Oracle Corporation, SAP SE, Salesforce.com Inc., Atos SE, Moody's Analytics Inc., SAS Institute Inc., Databricks Inc., Teradata Corporation, Fair Isaac Corporation, The MathWorks Inc., Persistent Systems Limited, DataRobot Inc., Zest AI inc., H2O.AI inc., Avaamo Inc., Inbenta Holdings Inc., CognitiveScale Inc., RapidMiner Inc.

North America was the largest region in the AI in BFSI market in 2023. Europe is expected to be the fastest-growing region in the forecast period. The regions covered in the AI in bfsi market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa.

The countries covered in the AI in bfsi market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in the BFSI (banking, financial services, and insurance) sector involves the use of AI technologies to enhance and automate processes within the industry. AI enables BFSI companies to improve efficiency, accuracy, and customer experience while lowering operational costs and mitigating risks.

The primary components of AI in BFSI include software and services. Hardware pertains to the physical devices and equipment that support AI systems. Key technologies encompass machine learning, natural language processing, Generative AI, computer vision, and others. AI applications in BFSI include chatbots, cybersecurity, risk management, predictive analytics, data collection and analysis, among others, serving various end users within banking, financial services, and insurance.

The AI in BFSI market research report is one of a series of new reports that provides AI in BFSI market statistics, including AI in BFSI industry global market size, regional shares, competitors with a AI in BFSI market share, detailed AI in BFSI market segments, market trends and opportunities, and any further data you may need to thrive in the AI in BFSI industry. This AI in BFSI 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 AI in BFSI market consists of revenues earned by entities by providing services such as risk management, customer service automation, and personalized financial solutions. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in BFSI market also includes sales of graphics processing units, high-capacity storage systems, and cloud servers. 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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