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AI in BFSI Market Size

Report ID: GMI2605
Published Date: Feb 2023
Report Format: PDF

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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.

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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.

Artificial Intelligence (AI) in BFSI Market Report Attributes
Report Attribute	Details
Base Year:	2022
Artificial Intelligence (AI) in BFSI Market Size in 2022:	USD 20 billion
Forecast Period:	2023 to 2032
Forecast Period 2023 to 2032 CAGR:	20%
2032 Value Projection:	USD 100 billion
Historical Data for:	2018 to 2022
No. of Pages:	300
Tables, Charts & Figures:	446
Segments covered:	Component, Technology, Application, End-use, and Region
Growth Drivers:	Exponentially growing digital data Rising investment in AI Increasing partnerships between financial institutes and fintech companies Growing need to provide enhanced customer experience Consumer preference shift toward the digital channel
Pitfalls & Challenges:	Privacy and security concerns Lack of consumer trust

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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.

Authors: Preeti Wadhwani

Frequently Asked Questions (FAQ) :

The market of AI in BFSI was worth more than USD 20 billion in 2022 and is anticipated to depict over 20% CAGR through 2032 resulting from increasing investments to implement AI solutions and services in the BFSI sector.

The customer service segment is projected to generate more than USD 60 billion in revenue by 2032 driven by 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.

Europe is projected to account for more than 25% of the market revenue by 2032, attributed to favorable government regulations that are encouraging the adoption of AI solutions and digitalization in a variety of sectors.

ATOS SE, AWS Inc., Cape Analytics LLC, Google LLC (Alphabet, Inc.), IBM Corporation, Lexalytics, Inc., Intel Corporation, Microsoft Corporation, NVIDIA Corporation, Palo Alto Networks, Inc., and Tencent Holdings Limited are some of the major industry participants operating in the market.