How Has the AI In BFSI Market Size Evolved in Recent Years?
The ai in bfsi market has seen considerable growth due to a variety of factors.
• The market size for AI in BFSI has seen a significant increase over the last few years. It is projected to expand from $72.84 billion in 2024 to $101.2 billion in 2025, with a compound annual growth rate (CAGR) of 38.9%.
The upsurge during the historic period is a result of the growing demand for a superior customer experience, the proliferation of digital banking channels, increased automation of everyday tasks, the prevalent use of AI for credit assessment, and a heightened demand for improved investment tactics.
What Are The Predictions for The AI In BFSI Market?
The ai in bfsi market is expected to maintain its strong growth trajectory in upcoming years.
• The market size for AI in BFSI is predicted to undergo significant growth in the forthcoming years. It's set to expand to $374.02 billion by 2029 at a Compound Annual Growth Rate (CAGR) of 38.7%.
The growth in this forecast period can be credited to the increasing need for sophisticated fraud detection systems, heightened attention on cybersecurity, the rising need for automated customer service, an uptick in the use of AI for assessing portfolio risk, and a growing focus on AI in financial forecasting. Key trends in the forecast period encompass technological developments, real-time data analytics, natural language processing, digital payment methods, and systems aimed at preventing fraud.
Which Drivers Are Accelerating Growth In The AI In BFSI Market?
The anticipated growth of AI in the BFSI market is largely attributed to its increasing use for enhancing efficiency. Artificial Intelligence (AI), which encompasses a wide variety of technologies and algorithms, facilitates machines to mimic human intellect, performing tasks like problem-solving, data analysis, and decision-making. The escalated use of AI for efficiency improvement can be traced back to advancements in computing power and cloud technology, paving the way for quicker processing and scalability of AI applications. AI algorithms process huge data sets to detect patterns, automate procedures like ad fraud detection, tailor financial services, and streamline investment decisions. For example, a Stanford University report revealed in April 2024 that the total star ratings for AI-related projects on GitHub saw a dramatic increase in 2023, skyrocketing from 4.0 million in 2022 to 12.2 million. Consequently, this growing application of AI for efficiency enhancement is fueling the growth of AI in the BFSI market.
What Are The Core Segments Of The Global AI In BFSI Market?
The AI in BFSI market covered in this report is segmented –
1) By Component: Hardware, Software, Services
2) By Technology: Machine Learning, Natural Learning Processing, Generative Artificial Intelligence (AI), Computer Vision, Other Technologies
3) By Application: Chatbot, Cyber Security, Risk Management, Predictive Analytics, Data Collection And Analysis, Other Applications
4) By End Use: Banking, Financial Services, Insurance
Subsegments:
1) By Hardware: AI-Specific Servers, GPUs and Accelerators for AI Processing, Data Storage Devices, Networking Equipment for AI Infrastructure
2) By Software: AI-Based Analytics Software, Fraud Detection and Risk Management Software, Chatbots and Virtual Assistants Software, AI-Driven Customer Relationship Management (CRM) Software, Predictive Analytics and Business Intelligence Tools, Robotic Process Automation (RPA) Software
3) By Services: AI Consulting and Integration Services, AI Deployment and Maintenance Services, AI Training and Support Services, Managed Services for AI Solutions, Cloud-Based AI Services
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Which Emerging Trends Are Reshaping The AI In BFSI Market Size?
In the AI in BFSI market, leading businesses are concentrating their efforts on creating groundbreaking technologies like predictive intelligence, designed to offer banks a more profound comprehension of consumer patterns. Predictive intelligence integrates data analysis and machine learning in predicting future occurrences and trends using historical data. Take, for example, Newgen Software, an Indian digital transformation solutions provider, introduced LumYn in May 2024. LumYn is a Generative AI-enabled hyper personalization platform engineered by Newgen Software, specifically for the banking industry. It is designed to boost customer experiences and bank profits by offering in-depth understanding of clients' needs, behaviors, preferences, and intentions. The platform integrates predictive intelligence with cutting-edge conversational AI, enabling banks to effortlessly engage with customer data and promptly devise solutions within a low-code environment.
Who Are the Key Players In The AI In BFSI Market?
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.
What Are The Regional Insights Into The AI In BFSI Market?
North America was the largest region in the AI in BFSI market in 2024. 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.
