Artificial Intelligence (AI) in BFSI Market Analysis And Forecast To 2031: By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision), By Component (Solution, Service), By Application (Back Office/Operation, Customer Service, Fin

Artificial Intelligence (AI) in BFSI Market Analysis And Forecast To 2031: By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision), By Component (Solution, Service), By Application (Back Office/Operation, Customer Service, Financial Advisory, Risk Management, Compliance & Security), By End-use (Bank, Insurance, Wealth Management), And Region

The global Artificial Intelligence (AI) in BFSI Market was valued at 11.2 billion in 2021 and it is anticipated to grow up to USD 114.6 billion by 2031, at a CAGR of 26.2% during the forecast period.

Artificial intelligence (AI) is a branch of computer science that deals with the creation of intelligent agents, AI in BFSI is used to create systems that can make decisions for themselves, which is important in an industry where there is a lot of data to process and where decisions need to be made quickly. AI can help to automate decision-making processes, making them faster and more accurate. It can also help to identify patterns and trends in data, which can be used to make better decisions.
Global Artificial Intelligence (AI) in BFSI Market Scope and Report Structure

Market Trends and Drivers
The industry is witnessing rapid growth in the adoption of big data and machine learning algorithms as BFSI institutes are preparing themselves for the next wave of digital disruption. In 2021, the fintech sector showcased around 68% increase in investments across the globe compared to 2020. Moreover, the integration of AI into the BFSI toolchain in various digital financial services has also accentuated AI in BFSI market demand.
Market Restraints and Challenges
There are several key restraints and challenges in artificial intelligence (AI) in BFSI market. Firstly, the development of AI is still in its early stages, which means that there is a lack of understanding about how AI works. This lack of understanding can lead to mistrust and hesitation from both financial institutions and consumers. Secondly, AI technology is expensive and requires a lot of investment to develop and implement. This can be a barrier for many financial institutions, especially small and medium-sized ones. Thirdly, AI technology is constantly evolving, which means that financial institutions need to continuously update their systems and processes to keep up with the latest developments. This can be a costly and time-consuming exercise. Finally, AI raises ethical and privacy concerns, as it can be used to collect and process large amounts of data. This raises concerns about how this data will be used and how it will be protected.
Global Artificial Intelligence (AI) in BFSI Market Segmental Overview
The report analyses the global Artificial Intelligence (AI) in BFSI Market based on Technology, Component, Application, End-user, and Region.

Global Artificial Intelligence (AI) in BFSI Market By Technology

Based on the technology, the Artificial Intelligence (AI) in BFSI Market industry is divided into Machine Learning, Natural Language Processing (NLP), and Computer Vision. Of these, the AI in BFSI machine learning segment captured significant market share in 2021. This is attributed to the shifting preference of regional BFSI enterprises toward machine learning algorithms for a wide range of applications including fraud detection, algorithmic trading, and anti-money laundering. Consequently, banks are deploying machine learning-based algorithms to combat illicit transactions. For instance, in March 2021, Mexican neobank Albo partnered with Acuant to incorporate AI-infused KYC and documentation solutions for AML compliance.

Global Artificial Intelligence (AI) in BFSI Market by Component

By component, the industry is bifurcated into solution, and services. In 2021, The solution segment in India held significant share of the Artificial Intelligence (AI) in BFSI Market share in 2021 owing to the growing popularity of Customer Relationship Management (CRM) has accentuated the demand for AI in BFSI solutions. BFSI institutes are heavily relying on CRM solutions to gain a better understanding of the customers, product segmentation, marketing campaign management, appropriate targeting, maintenance of long-term profitability, and mutually beneficial relationships with customers.

Global Artificial Intelligence (AI) in BFSI Market by Application

Based on application, the industry is categorized into Back Office/Operation, Customer Service, Financial Advisory, Risk Management, and Compliance & Security. The financial advisory segment is set to observe around 35% growth rate through 2028 due to the increasing importance of machine learning-based investment algorithms. The wealth management companies are offering robo-advisors that can help their customers better manage their money. Through personalization, chatbots, and customer-specific models, these robo-advisors can provide high-quality guidance on investment decisions and are available whenever the customer needs assistance. The increasing usage of AI in BFSI tools to mitigate investment risks has created new growth opportunities.

Global Artificial Intelligence (AI) in BFSI Market by End-user

Based on end-user, the Artificial Intelligence (AI) in BFSI Market is divided into Bank, Insurance, and Wealth Management. The bank segment generated significant revenue led by rising awareness on the usage of AI in BFSI tools by banks to increase their operational efficiency and provide better customer experience. The increasing competition from fintech companies will promote banks to opt for more advanced and intelligent solutions & services, creating new growth avenues for the AI in BFSI market. Banks in the UK are also focusing on the improvement of their operations through digital solutions and are increasing customer empowerment along with the control of financial matters. They are also exploring new applications in AI, such as financial risk assessment and customer profiling, driving the regional market.
Geographical Analysis of Global Artificial Intelligence (AI) in BFSI Market
Region-wise, it is studied across North America, Europe, Asia Pacific, and the Rest of the World. Europe accounted for nearly 20% of the artificial intelligence in BFSI market share in 2021 impelled by increasing digitalization of the financial sector and growing investments in AI. In addition, the growing penetration of AI for the development of novel technologies, such as robotic software automation, is the primary factor boosting the market share. European SMEs are increasingly developing bespoke artificial intelligence systems in the BFSI sector to introduce digital technologies. For instance, France has approximately 270 AI start-ups and above USD 325 million raised in funding.
Major Players in the Global Artificial Intelligence (AI) in BFSI Market
The key players in the market are Microsoft Corporation, IBM, Oracle Corporation, SAP SE, Baidu, Inc., salesforce.com, Inc., Intel Corporation, Alphabet Inc., Palantir Technologies Inc., and Inbenta Technologies Inc., among others.
COVID-19 Impact
The COVID-19 outbreak has impacted BFSI enterprises severely as economic slump coupled with poor stock market sentiments and ongoing liquidity concerns has hampered business growth. AI in BFSI technologies have emerged as a viable solution to prevent systemic failures, implement fraud detection & prevention techniques, and help BFSI organizations in reducing operational risks amid the ongoing pandemic.
Recent Developments

In January 2022, Cadbury started an initiative to let small business owners create their AD for free using the face and voice of the celebrity with the help of an AI tool.
In July 2020, Zebra Medical Vision collaborated with TELUS Ventures to enhance the availability of the former’s deep learning solutions in North America and expand AI solutions to clinical care settings and new modalities.
In April 2020, Google LLC launched a Rapid Response Virtual Agent for call centers. This new chatbot is built to respond to issues customers might be experiencing due to the coronavirus (COVID-19) outbreak over voice, chat, and other social channels.
In September 2019, IBM Watson Health signed an agreement with Guerbet, a France-based medical imaging company, to develop an AI software solution for cancer diagnostics and monitoring. This partnership has marked an extension of their earlier collaboration with live cancer diagnostics and monitoring.
In February 2019, U.S. President Donald J. Trump launched the American AI Initiative as the nation’s strategy for promoting leadership in artificial intelligence. As part of this initiative, Federal agencies have fostered public trust in AI-based systems by establishing guidelines for its development and real-life implementation across different industrial sectors.



Frequently Asked Questions
Q1. How big is the Corporate eLearning market?

Ans. The global Artificial Intelligence (AI) in BFSI Market was valued at 11.2 billion in 2021 and it is anticipated to grow up to USD 114.6 billion by 2031, at a CAGR of 26.2% during the forecast period.

Q2. What is the Artificial Intelligence (AI) in BFSI Market growth rate?

Ans. The growth rate of the Artificial Intelligence (AI) in BFSI Market is 26.2%.

Q3. Which region holds a major market share for the market?

Ans. North America holds a major market share of the Artificial Intelligence (AI) in BFSI Market in 2021.

Q4. Which segment accounted for the largest Artificial Intelligence (AI) in BFSI Market share?

Ans. By end-user, the bank segment accounted for the largest Artificial Intelligence (AI) in BFSI Market share.

Q5. Who are the key players in the Corporate eLearning market?

Ans. The global Artificial Intelligence (AI) in BFSI Market report includes players such as  s Microsoft Corporation, IBM, Oracle Corporation, SAP SE, Baidu, Inc., salesforce.com, Inc., Intel Corporation, Alphabet Inc., Palantir Technologies Inc., and Inbenta Technologies Inc. among others.

Q6. What are the factors driving the Artificial Intelligence (AI) in BFSI Market growth?

Ans. The major factors driving the growth of the market are the growing demand for AI solutions in BFSI sector.

Q7. What are the key growth strategies of Artificial Intelligence (AI) in BFSI Market players?

Ans. The key growth strategies of Artificial Intelligence (AI) in BFSI Market players are product launch and product approval.

Q8. Which region will provide more business opportunities for the Artificial Intelligence (AI) in BFSI Market during the forecast period?

Ans. The Asia-Pacific region will provide more business opportunities for the Artificial Intelligence (AI) in BFSI Market during the forecast period.

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