The India artificial intelligence (AI) in BFSI market size reached USD 830 Million in 2024. Looking forward, IMARC Group expects the market to reach USD 8,090 Million by 2033, exhibiting a growth rate (CAGR) of 28.8% during 2025-2033. The Indian economy is witnessing high growth, spurred by the increasing adoption of AI to drive improved decision-making, individualization of the customer, and enhance operational efficiency. Furthermore, government efforts, such as the Digital India program and AI assimilation are stimulating market growth.
Report Attribute
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Key Statistics
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Base Year
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2024
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Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 830 Million |
Market Forecast in 2033 | USD 8,090 Million |
Market Growth Rate 2025-2033 | 28.8% |
Increased AI Adoption in Financial Services
The Indian BFSI industry is in the midst of a major shift with the growing use of artificial intelligence (AI). AI has been a game-changer, especially in making processes more efficient, decision-making, and customer experience. Besides this, banks and financial institutions can minimize human errors, enhance accuracy, and provide more customized services to customers with the automation of intricate processes like credit underwriting and fraud detection. In line with this, increased use of AI also allows banks and financial institutions to make quicker, data-based decisions so that they can remain competitive in a rapidly digitalized environment. With the increasing need for more sophisticated, customer-oriented solutions, the use of AI in the BFSI sector is a must to satisfy these changing expectations. In May 2024, Setu, in collaboration with Sarvam AI, launched Sesame, a Large Language Model (LLM) tailored for India's BFSI sector. Sesame enhances credit underwriting, fraud detection, and personalized finance services. This technology by AI has enhanced decision-making but also increased adoption of AI throughout the industry, thereby favoring market expansion and allowing institutions to provide more intelligent, more effective financial services. Also, the BFSI industry is poised to leverage the entire potential of AI technology, revamping the delivery and experience of financial services with these developments.
Government Funding Boosts AI-Driven Innovation
The contribution of government funding in driving AI-led innovation in the BFSI industry cannot be overemphasized. As digital banking and fintech are growing at a rapid pace in India, AI has emerged as an essential enabler for financial institutions to optimize operations, enhance customer interactions, and make better decisions. Moreover, government policies encouraging AI adoption are pushing the evolution of solutions capable of transforming the sector with more efficient, secure, and personalized financial services. Strategic investment and regulatory push by the government are creating an ecosystem where AI can flourish, and the BFSI sector can be at the edge of technological transformation. In August 2024, India's Union Budget allocated USD 480 Million for the Digital India initiative, which is focused on fostering AI integration in various sectors, including banking. With AI applications projected to save USD 447 Billion in costs, this funding is expected to drive substantial improvements in efficiency, innovation, and inclusivity within the BFSI sector. The government's commitment to AI integration is likely to accelerate the growth of AI-powered solutions, making financial services more accessible and cost-effective. As the market for AI-driven solutions expands, this investment will undoubtedly fuel further technological advancements in the Indian BFSI sector.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the region/country level for 2025-2033. Our report has categorized the market based on component, technology, application, and end user.
Component Insights:
The report has provided a detailed breakup and analysis of the market based on the component. This includes solution and services.
Technology Insights:
The report has provided a detailed breakup and analysis of the market based on the technology. This includes machine learning, natural processing language, computer vision, and others.
Application Insights:
A detailed breakup and analysis of the market based on the application have also been provided in the report. This includes back office, customer service, financial advisory, risk management and compliance, and others.
End User Insights:
A detailed breakup and analysis of the market based on the end user have also been provided in the report. This includes bank, insurance company, and wealth management institute.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include North India, South India, East India, and West India.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Components Covered | Solution, Services |
Technologies Covered | Machine Learning, Natural Processing Language, Computer Vision, Others |
Applications Covered | Back Office, Customer Service, Financial Advisory, Risk Management and Compliance, Others |
End Users Covered | Bank, Insurance Company, Wealth Management Institute |
Regions Covered | North India, South India, East India, West India |
Customization Scope | 10% Free Customization |
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 Questions Answered in This Report:
Key Benefits for Stakeholders: