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 2024-2031

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.