Allied Market Research published a report, titled, “Artificial Intelligence in BFSI Market by Offerings (Hardware, Software, and Services), Solution (Chatbots, Fraud Detection & Prevention, Anti-Money Laundering, Customer Relationship Management, Data Analytics & Prediction, and Others), Technology (Deep Learning, Querying Method, Natural Language Processing, and Context-Aware Processing) : Global Opportunity Analysis and Industry Forecast, 2019–2026.” According to the report, the global AI in the BFSI industry was estimated at $17.76 billion in 2018 and is expected to hit $247.36 billion by 2026, registering a CAGR of 38.0% during the estimated period.
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Drivers, restraints & opportunities
An increase in technological advancements, a rise in preferences for personalized financial services, and remarkable business expansion across the world fuel the growth of the global AI in the BFSI market. On the other hand, several security concerns and low adoption of artificial intelligence in businesses curtail down the growth to some extent. Nevertheless, the demand for greater customer experience is expected to create an array of opportunities for the frontrunners in the industry.
The software segment to retain its dominance during the estimated period-
Based on offering, the software segment accounted for the major share in 2018, garnering nearly two-thirds of the global AI in the BFSI market and is expected to dominate during the forecast period. This is attributed to the benefits provided by financial industries immensely to track transactions, verify data, generate reports, and extract information related to customers. At the same time, the hardware segment would cite the fastest CAGR of 39.6% by 2026. This is due to hardware allows machines to process the large unparalleled amount of data for various Banking, financial services, and insurance industries in the market.
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