Artificial Intelligence (AI) in BFSI Market Report by Offering (Software, Hardware, Services), Solution (Chatbots, Fraud Detection and Prevention, Anti-Money Laundering, Customer Relationship Management, Data Analytics and Prediction, and Others), End User (Banks, Insurance, Wealth Management), and Region 2024-2032

Artificial Intelligence (AI) in BFSI Market Report by Offering (Software, Hardware, Services), Solution (Chatbots, Fraud Detection and Prevention, Anti-Money Laundering, Customer Relationship Management, Data Analytics and Prediction, and Others), End User (Banks, Insurance, Wealth Management), and Region 2024-2032

Report Format: PDF+Excel | Report ID: SR112024A5833
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Market Overview:

The global artificial intelligence (AI) in BFSI market size reached US$ 19.5 Billion in 2023. Looking forward, IMARC Group expects the market to reach US$ 224.5 Billion by 2032, exhibiting a growth rate (CAGR) of 30.3% during 2024-2032. The rising utilization of AI to increase efficiency, increasing focus on enhanced customer experience, growing demand for advanced fraud detection, and widespread utilization of AI to meet regulatory compliances are some of the major factors propelling the market.

Report Attribute
Key Statistics
Base Year
2023
Forecast Years
2024-2032
Historical Years
2018-2023
Market Size in 2023 US$ 19.5 Billion
Market Forecast in 2032 US$ 224.5 Billion
Market Growth Rate 2024-2032 30.3%


Artificial intelligence (AI) in banking, financial Services, and Insurance (BFSI) refers to the use of advanced algorithms and computational models to simulate human intelligence in financial operations. It includes machine learning (ML), natural language processing (NLP), and robotic process automation (RPA). AI in BFSI is widely used for fraud detection, credit scoring, personalized banking, algorithmic trading, risk management, customer service bots, predictive analysis in insurance, regulatory compliance, debt collection, and portfolio management. It enhances accuracy, provides greater efficiency, and improves customer experience. It also allows faster processing, real-time decision-making, and the automation of repetitive tasks.

Global Artificial Intelligence (AI) in BFSI Market

The widespread utilization of AI to automate compliance tasks, monitor regulatory changes, and predict future regulatory trends in the BFSI industry is propelling the market growth. Furthermore, the increasing adoption of AI to interpret and process large volumes of structured and unstructured data to enable BFSI entities to make informed decisions on lending, investment, risk management, customer segmentation, and product development is contributing to the market growth. Apart from this, the emerging trends of digitalization in the BFSI sector are facilitating AI demand to enhance digital capabilities, drive innovation, and maintain a competitive edge. Moreover, the growing demand for AI to provide personalized financial services to customers that enhance engagement, increase satisfaction, and improve retention rate is positively influencing the market growth. Along with this, the widespread adoption of AI to handle digital transactions, ensuring secure remote banking, and providing uninterrupted customer service in a contactless environment are strengthening the market growth.

Artificial Intelligence (AI) in BFSI Market Trends/Drivers:

The rising utilization of AI to increase efficiency

Artificial intelligence (AI) has become a significant driver for increased efficiency within the banking, financial services, and insurance (BFSI) sector. The ability of AI to automate mundane, repetitive tasks liberates human capital to focus on complex problem-solving and customer service roles, which boosts operational efficiency, reduces costs, and improves overall service delivery. Furthermore, AI can automate data entry, verification, reconciliation, and report generation processes, which traditionally require significant human resources and are prone to manual errors. Apart from this, AI-based robotic process automation (RPA) tools can handle loan origination, underwriting, and customer onboarding processes, which aids in reducing operational bottlenecks, improving response times, and enhancing the institution's capacity to manage large volumes of transactions. Moreover, it provides around-the-clock services, ensuring that the financial institution remains operational beyond standard business hours.

The increasing focus on enhanced customer experience

Ensuring enhanced customer experience is vital for BFSI entities to differentiate themselves in a highly competitive market. AI plays a central role in achieving this objective through chatbots and virtual assistants, which offer personalized, round-the-clock customer support, answering queries and resolving issues in real time. These tools can understand and respond to natural language queries, learn from past interactions, and even anticipate customer needs, thereby offering a personalized experience. AI is also integral to the development of personalized financial products and services. By analyzing vast amounts of data on customer behavior, preferences, and financial history, AI systems can provide tailored financial advice, recommend suitable products, and even predict future needs. This high degree of personalization not only improves customer satisfaction but also fosters customer loyalty and engagement.

The growing demand for advanced fraud detection

The BFSI sector continually grapples with the threat of fraud, and AI has emerged as a powerful tool in combating this challenge. AI algorithms based on machine learning (ML) are highly proficient at identifying unusual patterns and anomalies in vast amounts of data that may signify fraudulent activities. Furthermore, AI can monitor transactions in real time, flagging suspicious activities based on parameters, such as transaction size, frequency, location, and timing. It can also detect anomalies in customer behavior that might indicate identity theft or account takeover. Moreover, machine learning (ML) models can learn from each fraudulent incident to continually refine their detection capabilities. This ability to promptly detect and alert about potential fraud minimizes financial losses, protects customers, and assists in maintaining the institution's reputation.

Artificial Intelligence (AI) in BFSI Industry Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global artificial intelligence (AI) in BFSI market report, along with forecasts at the global, regional and country levels from 2024-2032. Our report has categorized the market based on offering, solution and end user.

Breakup by Offering:

Artificial Intelligence (AI) in BFSI Market

  • Software
  • Hardware
  • Services


Software dominates the market

The report has provided a detailed breakup and analysis of the market based on the offering. This includes software, hardware, and services. According to the report, software represented the largest market segment.

Software is dominating the market as it allows financial institutions to extract insights from data, automate processes, detect fraud, and provide personalized customer experiences. Furthermore, the growing demand for AI-powered software solutions, such as chatbots, predictive analytics systems, robotic process automation (RPA) tools, and customer relationship management (CRM) systems to enhance operational efficiency, customer service, risk management, and compliance, is boosting the market growth. Additionally, the software can be easily integrated with existing information technology (IT) infrastructure, making it a practical choice for BFSI institutions embarking on their AI journey. Along with this, the widespread availability of AI software as a Service (SaaS), which allows even smaller financial institutions to leverage AI, is acting as another growth-inducing factor. Moreover, the advancements in software, such as neural networks, deep learning models, and natural language processing capabilities, are supporting the market growth.

Breakup by Solution:

  • Chatbots
  • Fraud Detection and Prevention
  • Anti-Money Laundering
  • Customer Relationship Management
  • Data Analytics and Prediction
  • Others


Chatbots dominate the market

The report has provided a detailed breakup and analysis of the market based on the solution. This includes chatbots, fraud detection and prevention, anti-money laundering, customer relationship management, data analytics and prediction, and others. According to the report, chatbots represented the largest market segment.

Chatbots are dominating the market as they offer round-the-clock customer service and can handle queries, resolve issues, and provide information instantly, thus improving customer satisfaction and engagement. Furthermore, they aid in increasing operational efficiency by automating repetitive tasks, such as responding to common customer queries, providing account information, and assisting with transactions, which allows human agents to focus on more complex and high-value tasks, resulting in improved productivity and cost savings. Additionally, chatbots can deliver personalized experiences by analyzing customer data, understanding individual preferences, and providing tailored advice or product recommendations. Moreover, they are scalable and can handle a large number of customer interactions simultaneously. Apart from this, the recent advancements in natural language processing (NLP) and machine learning technologies have led to the development of intelligent chatbots that can understand and respond to natural language queries, learn from interactions, and even handle complex tasks.

Breakup by End User:

  • Banks
  • Insurance
  • Wealth Management


Banks dominate the market

The report has provided a detailed breakup and analysis of the market based on the end user. This includes banks, insurance, and wealth management. According to the report, banks represented the largest market segment.

Banks are dominating the market as they manage a vast amount of data. In line with this, AI can analyze this data to identify patterns, generate insights, and make accurate predictions, thereby facilitating informed decision-making in areas such as credit scoring, risk assessment, and customer segmentation. Furthermore, banks are continually striving to enhance their customer service to stand out in a highly competitive market. AI-powered solutions, such as chatbots and virtual assistants, enable banks to offer personalized, around-the-clock customer service, thus improving customer satisfaction and loyalty. Apart from this, AI assists banks in identifying unusual patterns and anomalies in data that could indicate potential fraudulent activity. By implementing AI, banks can significantly improve their ability to detect and prevent fraud.

Breakup by Region:

Artificial Intelligence (AI) in BFSI Market

  • 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


North America exhibits a clear dominance in the market, accounting for the largest artificial intelligence (AI) in BFSI market share

The report has also provided a comprehensive analysis of all the major regional markets, which includes North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America represented the largest market.

North America is dominating the AI in the BFSI market owing to the presence of various global technology giants and innovative startups, which are leading the development and application of AI technologies. Along with this, banks and financial institutions in the region are early adopters of technology and have been proactive in embracing AI to enhance their services, reduce operational costs, improve risk management, and maintain a competitive edge. Furthermore, North America has a well-established BFSI sector with a high degree of digitization, which provides a conducive environment for the integration and application of AI solutions. Additionally, regulatory bodies in the region have demonstrated a willingness to accommodate AI in the BFSI sector, recognizing its potential to improve operational efficiency and customer service while maintaining the integrity of the financial system.

Competitive Landscape:

The key market players are developing a range of AI-powered solutions for the BFSI sector, including chatbots, predictive analytics systems, fraud detection tools, and automated customer service solutions. These tools aim to improve efficiency, reduce costs, enhance customer experience, and mitigate risks in the BFSI sector. Furthermore, leading companies are forming strategic partnerships and collaborations with BFSI institutions to develop tailored AI-powered tools that meet the unique needs of clients. Additionally, companies are acquiring or merging with other companies that possess unique AI technologies to attract new customers and increase market penetration. Moreover, several key players are offering AI as a Service (AIaaS), which allows BFSI institutions to leverage AI technologies without the need for substantial upfront investment or technical expertise.

The report has provided a comprehensive analysis of the competitive landscape in the market. Detailed profiles of all major companies have also been provided. Some of the key players in the market include:

  • 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
  • SAS Institute Inc.

Recent Developments:

  • In March 2023, Amelia announced that it has entered into a partnership with BuildGroup and Monroe Capital to accelerate the adoption of Amelia’s Trusted AI products in the financial market.
  • In December 2021, Atos SE launched its Outcome-driven AI platform’ (ODAP), which will be able to serve various industries, such as the public sector, financial services, retail, manufacturing, and transport.
  • In September 2022, CognitiveScale Inc. launched TrustStar, a data-driven AI application that will assist loan officers in closing more loans.

Artificial Intelligence (AI) in BFSI Market Report Scope:

Report Features Details
Base Year of the Analysis 2023
Historical Period 2018-2023
Forecast Period 2024-2032
Units US$ Billion
Scope of the Report Exploration of Historical and Forecast Trends, Industry Catalysts and Challenges, Segment-Wise Historical and Predictive Market Assessment:
  • Offering
  • Solution
  • End User
  • Region
Offerings Covered Software, Hardware, Services
Solutions Covered Chatbots, Fraud Detection and Prevention, Anti-Money Laundering, Customer Relationship Management, Data Analytics and Prediction, Others
End Users Covered Banks, Insurance, Wealth Management
Regions Covered Asia Pacific, Europe, North America, Latin America, Middle East and Africa
Countries Covered United States, Canada, Germany, France, United Kingdom, Italy, Spain, Russia, China, Japan, India, South Korea, Australia, Indonesia, Brazil, Mexico
Companies Covered 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, SAS Institute Inc. etc.
Customization Scope 10% Free Customization
Report Price and Purchase Option Single User License: US$ 3899
Five User License: US$ 4899
Corporate License: US$ 5899
Post-Sale Analyst Support 10-12 Weeks
Delivery Format PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request)

Key Benefits for Stakeholders:

  • IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the artificial intelligence (AI) in BFSI market from 2018-2032.
  • The research study provides the latest information on the market drivers, challenges, and opportunities in the global artificial intelligence (AI) in BFSI market.
  • The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
  • Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the artificial intelligence (AI) in BFSI industry and its attractiveness.
  • Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.

Key Questions Answered in This Report

The global Artificial Intelligence (AI) in BFSI market was valued at US$ 19.5 Billion in 2023.

We expect the global Artificial Intelligence (AI) in BFSI market to exhibit a CAGR of 30.3% during 2024-2032.

The emerging trend of digitalization, along with the widespread utilization of Artificial Intelligence (AI) in BFSI to automate compliance tasks, monitor regulatory changes, and predict future regulatory trends, is primarily driving the global Artificial Intelligence (AI) in BFSI market.

The sudden outbreak of the COVID-19 pandemic has led to the growing adoption of AI in the BFSI to handle digital transactions, ensure secure remote banking, and provide uninterrupted customer service in a contactless environment, during the lockdown scenario.

Based on the offering, the global Artificial Intelligence (AI) in BFSI market can be segmented into software, hardware, and services. Currently, software holds the majority of the total market share.

Based on the solution, the global Artificial Intelligence (AI) in BFSI market has been divided into chatbots, fraud detection and prevention, anti-money laundering, customer relationship management, data analytics and prediction, and others. Among these, chatbots currently exhibit a clear dominance in the market.

Based on the end user, the global Artificial Intelligence (AI) in BFSI market can be bifurcated into banks, insurance, and wealth management. Currently, banks account for the largest market share.

On a regional level, the market has been classified into North America, Asia-Pacific, Europe, Latin America, and Middle East and Africa, where North America currently dominates the global market.

Some of the major players in the global Artificial Intelligence (AI) in BFSI market include 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, SAS Institute Inc., etc.

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Artificial Intelligence (AI) in BFSI Market Report by Offering (Software, Hardware, Services), Solution (Chatbots, Fraud Detection and Prevention, Anti-Money Laundering, Customer Relationship Management, Data Analytics and Prediction, and Others), End User (Banks, Insurance, Wealth Management), and Region 2024-2032
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