Artificial Intelligence (AI) in BFSI Market Size

AI in BFSI Market Size

Artificial Intelligence in BFSI Market size valued at USD 20 billion in 2022 and is expected to exhibit a CAGR of 20% from 2023 to 2032, owing to increasing investments toward implementing AI solutions and services in the BFSI sector.

Global investments in the fintech sector grew by over 68% in 2021 compared to 2020. Digital enterprises and tech leaders such as Google, Amazon, and Apple are at the forefront of such technological investments. According to a Bank of England survey, in 2022, entities are likely to be interested in investing in AI for both medium and long term. Thus, the increasing acceptance of AI technologies, coupled with advanced financial analytics and ML, has led to massive investments in the development of AI technologies to improve financial operations and enhance user experience.

Data security and safety concerns to hinder product adoption

Banking professionals claim that privacy and security issues are the major barriers to the adoption of AI technologies. Financial institutions are more vulnerable to cyber threats since AI platforms and solutions analyze customer data to derive useful insights that help businesses make decisions and streamline their operations. Data security for deep learning and machine learning algorithms is a key challenge. However, mounting government efforts to implement AI-specific legislation and appoint dedicated AI regulators to oversee AI ethical and security threats are foreseen to counter these limitations in the upcoming period.