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AI in BFSI Market Analysis
- Report ID: GMI2605
- Published Date: Feb 2023
- Report Format: PDF
AI in BFSI Market Analysis
In terms of components, the artificial intelligence in BFSI market share from the solution segment is estimated to witness over 15% CAGR through 2032. Ongoing efforts by financial institutions to integrate AI solutions in order to digitalize their operations through smoother customer interactions, better legal compliance, and reduced fraud, along with the introduction of AI solutions in the BFSI sector. For instance, in June 2022, Kiya.ai, a developer of innovative digital solutions for financial institutions and governments, globally launched India's first-ever Banking Metaverse dubbed ‘Kiyaverse’.
Under solution, the artificial intelligence (AI) in BFSI market from data analytics & visualization segment is anticipated to record significant growth during the forecast timeline, attributed to the proliferation of digital data across financial institutes caused by the increasing usage of digital banking services. Furthermore, the segment growth is likely to be fueled by cutting-edge competition, and prominent risks that are urging banks and other financial institutions to constantly innovate and differentiate by shifting from "customer-focused" to "customer-centric" business models.
The artificial intelligence (AI) in BFSI market from the machine learning segment accounted for 40% revenue share in 2022. Widespread application of ML technology for various use cases, including robo-advising, market impact analysis, financial monitoring, risk management, and process automation. Additionally, this technology benefits banks and financial institutions by accelerating the underwriting process, portfolio composition & optimization, and model validation, which is speculated to positively influence the industry landscape.
As per application, the artificial intelligence in BFSI market share from the customer service segment is predicted to reach USD 60 billion by 2032. The hyper-personalization of user experiences through the integration of AI technology into products and services, including intelligent voice and chatbots, which streamlines communication with customers is anticipated to support the market expansion. For instance, in July 2022, Glia, a digital customer service (DCS) supplier, launched Glia Virtual Assistants (GVAs) to assist businesses by offering seamless customer experiences that combine virtual and human support.
By end-use, the artificial intelligence in BFSI market share from the bank segment will expand at a CAGR of 20% till 2032, as the mounting deployment of AI technology by banks for a variety of new applications owing to the soaring digital engagement led by evolving customer behaviors. Additionally, to generate new value propositions and enhance client experiences, incumbent banks are becoming AI-driven enterprises. For instance, in December 2022, Deutsche Bank and NVIDIA established a multi-year innovation partnership to advance AI and ML adoption in the financial services industry.
According to the report, the Europe artificial intelligence in BFSI market is estimated to hold more than 25% industry share by 2032, credited to favorable government policies that are encouraging AI adoption and promoting digitalization across several sectors. In April 2021, the EU announced the AI Act, which aims to introduce a common legal framework for AI for all sectors. Similarly, in March 2021, the European Investment Bank (EIB) granted €7.5 million (~USD 8 billion) to Cortical.io AG to support the development of AI technology based on NLU strategy that can comprehend and process text in human language.
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Artificial Intelligence (AI) in BFSI Market Scope
