Artificial Intelligence (AI) in Lending Market Report 2025

This artificial intelligence (AI) in lending market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The artificial intelligence (AI) in lending market size has grown exponentially in recent years. It will grow from $9.18 billion in 2024 to $11.63 billion in 2025 at a compound annual growth rate (CAGR) of 26.6%. The growth in the historic period can be attributed to consumer demand for digital services, cost reduction, fraud detection, growth of peer-to-peer and online lending platforms using AI, growing demand for real-time data processing.

The artificial intelligence (AI) in lending market size is expected to see exponential growth in the next few years. It will grow to $29.58 billion in 2029 at a compound annual growth rate (CAGR) of 26.3%. The growth in the forecast period can be attributed to rising demand for quick and efficient lending processes, increasing competition pushing lenders to adopt AI, increasing access to credit for underserved populations, growth of cloud-based AI lending platforms, growth of mobile lending apps utilizing AI. Major trends in the forecast period include developments in AI technologies and machine learning algorithms, use of big data for credit risk assessment, integration with fintech, partnerships between tech firms and lenders, combination of AI with blockchain for secure lending transactions.

The growing focus on digital transformation is expected to drive the expansion of the AI in lending market. Digital transformation entails integrating digital technologies throughout a business, fundamentally changing its operations and value delivery to customers. This shift is gaining momentum as it enhances efficiency, improves customer experiences, and helps businesses remain competitive in a rapidly evolving digital landscape. AI in lending is crucial for digital transformation as it streamlines the lending process, refines risk assessment, boosts customer experiences, and enhances operational efficiency through automation and data-driven insights. For example, in November 2023, the UK Cabinet Office reported that the UK government committed an additional $8.68 billion (£8 billion) for digital, data, and technology transformation by 2025 as part of the 2021 Spending Review. This emphasis on digital transformation is fueling the growth of the AI in lending market.

Key players in the AI in lending market are advancing their offerings with sophisticated solutions such as loan lifecycle management systems. These systems manage and automate every stage of a loan's lifecycle, including origination, processing, servicing, and repayment. For instance, in January 2023, Temenos, a Switzerland-based banking software company, introduced an AI-driven corporate lending solution. This next-generation solution enables banks to consolidate global commercial loan portfolios and unify servicing on a single platform. It simplifies complex loan processing and lifecycle management across different lending lines and regions, serving both large tier-one and regional banks. The solution facilitates the efficient servicing of various loan types, from high-volume bilateral loans to complex corporate credits, addressing challenges related to disparate systems and integration issues with advanced automation and best-practice workflows.

In April 2024, Aurionpro Solutions, an India-based software firm, acquired Arya.ai for an undisclosed amount. This acquisition will significantly enhance Aurionpro’s fintech portfolio by accelerating the use of responsible, accurate, and auditable AI, catering to the evolving needs of banks and insurers. The integration will bring new expertise and products in AI, deep learning, intelligent automation, PaaS, autonomous AI platforms, and customized industry solutions, bolstering Aurionpro’s market position. Arya.ai, also based in India, specializes in AI solutions for lending.

Major companies operating in the artificial intelligence (AI) in lending market are Pegasystems Inc., Newgen Software Technology Limited, IBM Corporation, American Express Banking Corp., PayPal Holdings Inc., OnDeck Capital Inc., NVIDIA Corporation, Fiserv Inc., Nucleus Software Exports Limited, SoFi Technologies Inc., Enova International Inc., LendingClub Corporation, Upstart Holdings Inc., Tavant, SymphonyAI LLC, DataRobot Inc., Prosper Funding LLC, Funding Circle Ltd., OakNorth Bank Plc, AlphaSense Inc., Figure Technologies Inc., Avant LLC, Better Mortgage Corporation, Sigma Infosolutions Ltd., Zest AI, LenddoEFL, Ellie Mae Inc., Kavout Corp.

North America was the largest region in the AI in lending market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the artificial intelligence (AI) in lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the artificial intelligence (AI) in lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Artificial intelligence (AI) in lending involves using AI technologies to enhance various aspects of the lending process. AI improves credit scoring accuracy, fraud detection, and risk management, enabling lenders to make more informed decisions. It also supports personalized lending experiences and automates customer service, increasing efficiency and customer satisfaction.

The primary components of AI in lending include software and services. Software refers to applications that use AI to manage lending processes such as loan approval, risk assessment, and customer service. These applications can be deployed both on the cloud and on-premises and utilize technologies such as machine learning, predictive analytics, natural language processing (NLP), and robotic process automation (RPA). The key users of these AI solutions include banks, financial institutions, credit unions, peer-to-peer (P2P) lending platforms, and other lending entities.

The AI in lending market research report is one of a series of new reports that provides AI in lending market statistics, including AI in lending industry global market size, regional shares, competitors with a AI in lending market share, detailed AI in lending market segments, market trends and opportunities, and any further data you may need to thrive in the AI in lending industry. This AI in lending 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 lending market consists of revenues earned by entities by providing services such as automated credit scoring, fraud detection, automated underwriting, loan personalization and document verification. The market value includes the value of related goods sold by the service provider or included within the service offering. The AI in lending market also includes sales of chatbots and virtual assistants, predictive analytics platforms and loan origination systems. 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.

This product will be delivered within 3-5 business days.