Industry Overview of Artificial Intelligence Ai In Bfsi Market
Artificial intelligence (AI) in the BFSI sector involves the deployment of computer systems or robot-controlled machines to execute tasks commonly associated with human capabilities. It encompasses the ability to predict, provide recommendations, and make decisions that impact both real-world and digital scenarios. The integration of AI in the BFSI industry is particularly harnessed for tasks like fraud detection and regulatory adherence. AI systems have the capacity to identify and flag potential instances of fraud, encompassing activities such as money laundering and identity theft. Within the BFSI realm, AI facilitates the implementation of virtual assistants that vigilantly monitor transactions and customer behaviors. These assistants record and analyze data, ensuring alignment with diverse regulatory frameworks. As a result, the widespread application of AI in BFSI is prevalent across various countries.
How big is the Artificial Intelligence Ai In Bfsi Market?
The global artificial intelligence (AI) in BFSI market size reached US$ 14.2 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 94.1 Billion by 2028, exhibiting a growth rate (CAGR) of 33.9% during 2023-2028.
What Are the Growth Prospects and Trends in The Artificial Intelligence Ai In Bfsi Market?
The expansion of the artificial intelligence (AI) in the BFSI market is primarily steered by the increasing digitization and automation within the banking, financial services, and insurance sector. This shift addresses the limitations of traditional credit reporting systems, which may involve errors, incomplete transaction records, and incorrect creditor classifications. Furthermore, the rising demand for AI-driven loan and credit systems is noteworthy. These systems assess customer behavioral patterns, even for those with limited credit histories, to determine creditworthiness. They also offer banks early alerts about behaviors that could signify higher default risks, contributing to market growth. Additionally, the escalating adoption of AI and machine learning (ML) technologies for automating repetitive manual tasks is a key driver. These technologies possess the capability to sense, learn, and enhance performance over time, thereby reducing errors and facilitating risk management and regulatory compliance. This adoption also enhances the overall customer experience, further propelling the global market. Moreover, the increasing reliance on AI for swift data processing, coupled with the expansion of the BFSI sector on a global scale, is expected to drive the artificial intelligence (AI) in BFSI market in the upcoming years.
What Is Included In Market Segmentation?
The report has segmented the market into the following categories:
Breakup by Offering:
- Software
- Hardware
- Services
Breakup by Solution:
- Chatbots
- Fraud Detection and Prevention
- Anti-Money Laundering
- Customer Relationship Management
- Data Analytics and Prediction
- Others
Breakup by End User:
- Banks
- Insurance
- Wealth Management
Breakup by Region:
- North America
- United States
- Canada
- Asia-Pacific
- China
- Japan
- India
- South Korea
- Australia
- Indonesia
- Others
- Europe
- Germany
- France
- United Kingdom
- Italy
- Spain
- Russia
- Others
- Latin America
- Brazil
- Mexico
- Others
- Middle East and Africa
The report provides a comprehensive analysis of the industry key players listed below:
The Major Players in the market are Amelia, Atos SE, Avaamo Inc., CognitiveScale Inc., Inbenta Holdings Inc., Interactions LLC, International Business Machines Corporation, Microsoft Corporation, NVIDIA Corporation, Palantir Technologies Inc., SAP SE and SAS Institute Inc.