USD 20.15 Billion
Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Size, Share, Growth Analysis, By Component(Hardware, Software, Services), By Application(Chatbot, Cyber Security, Risk Management, Predictive Analytics), By Technology(Machine Learning, Natural Learning Processing, Generative AI, Computer Vision), By End Use(Banking, Financial Services, Insurance), By Region - Industry Forecast 2025-2032
Report ID:
SQMIG40A2015 |
Region:
Global |
Published Date: June, 2024
Pages:
197
|Tables:
122
|Figures:
77
Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Insights
Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market size was valued at USD 26.24 Billion in 2023 and is poised to grow from USD 34.77 Billion in 2024 to USD 326 Billion by 2032, growing at a CAGR of 32.5% during the forecast period (2025-2032).
BFSI companies around the world are focusing on enhancing their business operations through deployment of AI solutions and services. High investments in the development of novel AI solutions for BFSI applications coupled with increasing emphasis on improving profitability are also slated to drive artificial intelligence (AI) in BFSI market growth going forward. Increasing demand for better risk and compliance management to avoid frauds is also expected to promote the use of AI solutions in the BFSI industry over the coming years. AI will also allow BFSI companies to make data-driven decisions and provide personalized customer experiences that will help them maximize their business scope on a global level. However, high costs of implementation and data privacy and security concerns are estimated to hinder AI adoption in the BFSI space through 2031 and beyond.
Market snapshot - 2024-2031
Global Market Size
Largest Segment
Risk Management
Fastest Growth
Chatbot
Growth Rate
32.5% CAGR
Global Artificial Intelligence (AI) In Banking, Financial Services, And Insurance (BFSI) Market ($ Bn)
Country Share for North America Region (%)
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Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Segmental Analysis
Global artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market is segmented into component, application, technology, end-use, and region. By component, the market is segmented into hardware, software, and services. By technology, it is segmented into machine learning, natural language processing, generative AI, computer vision, and others. By application, the market is segmented into chatbot, cyber security, risk management, predictive analytics, data collection & analysis, and others. By end use, the market is segmented into banking, financial services, and insurance. By region, the market is segmented into North America, Asia Pacific, Europe, Latin America, and MEA.
Analysis by Application
Risk management takes precedence when it comes to use of AI in BFSI industry allowing this segment to hold a dominant share. Growing sophistication of frauds and attacks on finance organizations has led to a high adoption of AI-powered risk and compliance management solutions that can proactively manage risks and threats. Implementation of stringent data security and privacy regulations for the BFSI industry are also projected to promote the use of AI for risk management applications in the future.
Meanwhile, the use of chatbots to enhance customer experience is projected to increase at a rapid pace over the coming years. Growing deployment of AI-enabled chatbots to provide customer service with faster response times is projected to help this segment expand in the future. AI chatbots can also be trained on individual data to create more personal responses and provide a more fulfilling customer interaction. Low costs and high quality of support are key benefits of AI chatbots that are helping this segment bolster market growth at a notable pace.
Analysis by Technology
Machine learning is estimated to be the most widely used AI sub technology in the BFSI industry. High use of this technology to train AI models and use of the same to derive meaningful insights from raw unstructured data will also contribute to the high market share of this segment. Machine learning can also manage document labelling and tagging to improve document management capabilities of BFSI companies. Investing in this segment can never go wrong for any artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market player.
Use of natural language processing in the BFSI industry is projected to increase at a rapid pace across the study period and beyond. Natural language processing (NLP) can be used to perform sentiment analysis and reduce errors in the BFSI space. The technology is also being used to improve communication of companies with their customers as more and more customer service becomes dependent on chatbots. The technology can also be used to detect fraud in insurance claim processes.
Global Artificial Intelligence (AI) In Banking, Financial Services, And Insurance (BFSI) Market By Technology
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Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Regional Insights
The presence of leading commercial banks and financial institutions in the North American region allow it to emerge as a leader in the global AI in BFSI market. High adoption of AI technologies by multiple BFSI organizations in this region and growing investments in AI integration are helping the region maintain its dominance. Moreover, the presence of strict regulatory framework is also necessitating the use of risk and compliance management solutions powered by advanced technologies in countries such as Canada and the United States.
Rise of digital banking in the Asia Pacific region has helped this region bag the title of the fastest-expanding market for AI in BFSI. Evolving consumer preferences, high use of digital banking solutions, and growing accessibility of people for different BFSI services are all boosting AI in BFSI adoption in this region. Japan, India, China, and South Korea are noteworthy markets for artificial intelligence (AI) in banking, financial services, and insurance (BFSI) companies looking to make a mark in this region. Growing use of mobile banking and demand for more personalized financial services will also create new opportunities for AI in BFSI providers going forward.
Global Artificial Intelligence (AI) In Banking, Financial Services, And Insurance (BFSI) Market By Region
- Largest
- Fastest
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Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Dynamics
Drivers
Growing Demand for Better Customer Experience
- AI-powered tools and solutions are being continuously used to improve the user experience in the BFSI industry. From chatbots to digital assistants, every solution is being backed by AI to give customers a better experience and also provide them round-the-clock support. Faster response and turnaround times can be achieved by deployment of AI thereby improving customer experience.
Maintaining Regulatory Compliance
- Compliance and regulatory standards for the BFSI industry have been becoming increasingly complex. Ensuring compliance through humans is becoming a very resource-intensive task and this is why AI-powered compliance and regulatory management solutions will be highly coveted in the future.
Restraints
Integration with Legacy Infrastructure
- Integrating AI with the current BFSI infrastructure is a very complex and challenging task. Difficulties in migrating from traditional systems to AI-based systems and compatibility issues with traditional hardware are all expected to hinder adoption of AI in the BFSI industry going forward.
Data Privacy and Security Concerns
- The BFSI industry deals with highly crucial and important financial data that is bound with several privacy and security mandates. Lapses in data privacy and security due to use of AI solutions are projected to hamper the global artificial intelligence (AI) in banking, financial services, and insurance (BFSI) demand outlook over the coming years.
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Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Competitive Landscape
The global artificial intelligence in BFSI market is highly opportune as the use of AI in this industry is in its initial stages. New companies have a good chance of penetrating and succeeding in this market provided they come up with unique AI solutions for different BFSI applications. Integration of AI with other advanced technologies such as blockchain will also create new opportunities for AI in BFSI market players. Creating personalized finance recommendations and user experience will be a key trend that all AI in BFSI providers will be targeting in the long run.
Top Player’s Company Profiles
- IBM (US)
- Microsoft (US)
- Google Cloud (US)
- AWS Inc. (US)
- NVIDIA (US)
- H2O.ai (US)
- DataRobot (US)
- Kabbage (US)
- Upstart (US)
- Zest AI (US)
- Ayasdi (US)
- Darktrace (UK)
- Feedzai (Portugal)
- Kensho Technologies (US)
- JPMorgan Chase (US)
- Bank of America (US)
- Wells Fargo (US)
- Lemonade (US)
- Clover Health (US)
- Zego (UK)
Recent Developments
- Temenos, a leading provider of cloud solutions for banking organizations, announced the launch of its generative AI solutions for core banking in May 2024. These new offerings are part of Temenos’s AI infused banking system and helps banks improve their productivity to maximize return on investments.
- India’s first Large Language Model (LLM) specifically created for the BFSI industry was developed and launched by Setu in collaboration with Sarvam AI in May 2024. This launched opened up new windows of opportunities for companies operating in the Indian artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market.
- Newgen Software, a Canadian software organization launched its new generative-AI-powered hyperpersonalization platform for banks in May 2024. The solution is called LumYn and is intended to enhance customer experience for banks’ users. The company intended to capitalize on the growing demand for personalized finance services around the world.
Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Key Market Trends
- Personalization through AI: BFSI companies can deploy AI to generate personalized financial solutions and services for their customers by training AI on their data. This could help BFSI companies improve their business scope and enhance the overall customer experience as well.
- Use of Blockchain: BFSI organizations can also focus on integrating AI with blockchain technology as decentralized gains traction. Growing focus on decentralized finance and rising investments in the same are estimated to create new opportunities for AI in BFSI providers in the future.
Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, artificial intelligence (AI) in banking, financial services, and insurance (BFSI) is projected to be driven by rising demand for better customer experience, a growing need for better risk management, and advancements in AI technology. However, the complexity of AI solutions and data privacy and security concerns are slated to slow down artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market growth in the future. Evolving consumer preferences and the adoption of digital banking services are slated to help Asia Pacific remain the fastest-growing market in the world. AI in BFSI providers should target the personalization trend if they want to stay relevant in the long run.
| Report Metric | Details |
|---|---|
| Market size value in BFSI | USD 20.15 Billion |
| Market size value in 2031 | USD 246.04 Billion |
| Growth Rate | 32.5% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Report Snapshots
- Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Companies
- Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Size
- Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Analysis
- Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Geographic Analysis
- Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market News
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