Artificial Intelligence (AI) in BFSI Market Size By Component (Solution [Chatbot, Customer Behavior Analytics, Customer Relationship Management (CRM), Data Analytics & Visualization, Fraud Detection], Service [Professional Service, Managed Service]), By T

Artificial Intelligence (AI) in BFSI Market Size By Component (Solution [Chatbot, Customer Behavior Analytics, Customer Relationship Management (CRM), Data Analytics & Visualization, Fraud Detection], Service [Professional Service, Managed Service]), By Technology (Machine Learning, Natural Language Processing (NLP), Computer Vision), By Application (Back Office/Operation, Customer Service, Financial Advisory, Risk Management, Compliance & Security), By End-use (Bank, Insurance, Wealth Management), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2023 - 2032

Artificial Intelligence (AI) in BFSI Market is set to witness significant gains between 2023 and 2032, owing to the exponential growth in the quantity of digital data generation. As per credible reports, digital data is anticipated to grow by 40% each year, during the next ten years.

Overall, AI in BFSI market is segmented in terms of component, technology, application, end-use, and region.

Based on the component, the services segment is set to grow robustly through 2032. The segmental growth will be driven by the increasing integration and deployment of AI-based solutions in insurance firms, banks, and wealth management organizations. Besides, the demand for AI-based professional services would surge further, since organizations operating in the BFSI market are increasingly focusing on core competencies.

In terms of application, the financial advisory segment was valued at more than USD 3.5 billion in 2022. The expansion can be attributed to the rising adoption of ML and AI in wealth management firms. These companies are also offering robo-advisors to help their customers with better financial management. For instance, in February 2023, the Saudi-based technology platform, Madkhol launched its robo-advisory platform, to cater to the requirements of the investments made by the SRB (Shariyah Review Bureau).

As per company claims, the introduction of robo-advisors would enable it to manage investments with less human intervention, making wealth management highly affordable, reliable, and secure for its clients.

In the context of technology, the natural language processing segment is expected to be valued at more than USD 50 billion through 2023-2032. An increasing amount of digital data will mainly drive the demand for NLP technology, especially in financial institutes.

On the basis of end-use, the market is likely to be defined by the wealth management segment, which held more than USD 5.5 billion market share in 2022. The segment’s projected growth by 2032 can be credited to the expansion of the wealth management sector, which is increasingly adopting the usage of AI.

In the regional context, the North America artificial Intelligence in BFSI market was valued at more than USD 5 billion in 2022 and is anticipated to further expand through 2032. The regional market growth will be characterized by the rising investments and presence and adoption of AI by multinational firms such as Facebook and Google.

Moreover, strategic initiatives by wealth management firms to maintain their niche in the market would support the product adoption in North American countries. For instance, in February 2023, Kingswood U.S. announced opening a corporate office in Florida to accommodate a new wealth management group, led by Brian Herman. As per reports, this expansion will strengthen the company’s position as a wealth manager in South Florida.