What Has Been the Growth of the Generative Artificial Intelligence AI In Financial Services Market So Far?
The generative artificial intelligence ai in financial services market has seen considerable growth due to a variety of factors.
• Recent years have seen a remarkable growth in the market size of generative artificial intelligence (AI) in financial services. The market, which is projected to escalate from $1.44 billion in 2024 to $1.89 billion in 2025, is expected to yield a compound annual growth rate (CAGR) of 31.2%.
The historic surge in growth can be credited to factors such as the rise of digital transformation, amplified data accessibility, the need for personalization, the pursuit of operational efficiency, and advancements in technological investments.
What Are the Future Growth Projections for the Generative Artificial Intelligence AI In Financial Services Market?
The generative artificial intelligence ai in financial services market is expected to maintain its strong growth trajectory in upcoming years.
• There is anticipated to be significant expansion in the generative AI market within the financial services sector in the coming years. The market size is predicted to escalate to $5.54 billion in 2029, with a compound annual growth rate (CAGR) of 30.8%.
Several factors can account for this predicted growth during the forecasted period, including the increased use of generative AI for fraud detection and prevention, enhanced reporting capabilities, the globalization of financial services, partnerships with fintech and a rising understanding of AI. Key market trends during this period are expected to be collaborative AI solutions, personalized financial offerings, the implementation of AI solutions, AI-guided investment tactics and fusion with blockchain technology.
What Are The Core Factors Supporting Growth In The Generative Artificial Intelligence AI In Financial Services Market?
The escalation of financial fraud is predicted to drive the advancement of generative artificial intelligence (AI) in the financial services industry. Financial fraud encompasses deceptive activities designed to secure undue financial benefits or inflict financial harm on individuals or corporations. This surge in financial fraud is triggered by the expansion of digital financial services and online dealings, the widespread usage of digital platforms, and the refinement of fraud schemes. Generative AI can produce synthetic datasets that can mimic real-world situations such as fraud. These datasets can be leveraged to edify and evaluate fraud detection algorithms, thereby enhancing their power to discern new and transforming fraud methods while not jeopardizing accurate customer data. In February 2024, for instance, as per the Federal Trade Commission, an independent agency in the US, financial losses totalling $10.0 billion occurred due to deceptive practices, showing a rise of $1.2 billion compared to 2022. Hence, the proliferating financial fraud is fuelling the expansion of the generative artificial intelligence (AI) in the financial services sector.
What Are The Major Segments Within The Global Generative Artificial Intelligence AI In Financial Services Market?
The generative artificial intelligence (AI) in financial services market covered in this report is segmented –
1) By Type: Solutions, Services
2) By Deployment Mode: Cloud, On-Premises
3) By Application: Credit Scoring, Fraud Detection, Risk Management, Forecasting And Reporting, Other Applications
Subsegments:
1) By Solutions: Fraud Detection And Prevention Solutions, Risk Assessment And Management Tools, Algorithmic Trading Systems, Customer Analytics And Insights Platforms, Automated Reporting And Compliance Solutions, Personalized Financial Advisory Tools, Chatbots For Customer Support
2) By Services: Consulting Services For AI Implementation, Integration Services For Existing Systems, Training And Development For Staff, Ongoing Support And Maintenance Services, Data Management And Analytics Services, Custom AI Model Development Services.
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What Trends Are Shaping The Generative Artificial Intelligence AI In Financial Services Market?
Leading firms in the generative AI for financial services sector are prioritizing the development of cutting-edge technologies like generative AI instruments. These tools deliver precise, creative, and data-driven results, streamline demanding tasks, and swiftly adapt to fresh data. Essentially, a generative AI utility is a software program that uses sophisticated algorithms to generate new, authentic content or data by learning from existing patterns in extensive datasets. As a case in point, in April 2024, Hapax, an American financial service startup, debuted a Generative AI Tool specifically for the Financial Services Industry. The technology was designed to apply generative AI in delivering sector-specific knowledge, decision-making prowess, and valuable assets to banking entities and similar enterprises. It bridges the gap in information access between larger and smaller banking institutions by presenting a cost-efficient and effective solution for smaller to medium-sized banks and credit unions. These entities frequently require additional resources for competent personnel and technology and often depend on consultants and informed estimations to navigate their intricate operations and uphold regulatory compliance. Hapax's tool simplifies the procurement of accurate, verifiable data, thus making it easier and less costly for these institutions to efficiently cater to their needs.
Who Are the Key Players In The Generative Artificial Intelligence AI In Financial Services Market?
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.
What Is The Most Dominant Region In The Generative Artificial Intelligence AI In Financial Services Market?
North America was the largest region in the generative artificial intelligence (AI) in financial services market in 2024. 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.
