Latest News- AI In Banking Market: Solution is expected to lead the Component segment during 2025-2029

The AI In Banking Market is being driven by Imperative for enhanced operational efficiency and cost reduction

The AI In Banking Market is expected to grow at a CAGR of 27.7% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 77085.7 million. The global AI in banking market is experiencing a significant shift with the increasing adoption of generative artificial intelligence (AI), driven by advanced large language models (LLMs). Generative AI goes beyond the conventional predictive and analytical capabilities of AI, enabling the creation of original content, synthesis of complex data, and sophisticated human-like dialogue. This technological advancement offers financial institutions the opportunity to innovate, with applications ranging from internal productivity tools to customer personalization. Examples include the generation of marketing copy, summarization of research reports, creation of custom code, and the deployment of hyper-realistic conversational agents. Financial institutions are actively exploring and implementing this technology to enhance employee efficiency and deliver unparalleled customer experiences. 

Get more information on AI In Banking Market by requesting a sample report

Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • Solution
  • Service
• Technology
  • Natural language processing
  • Machine learning and deep learning
  • Computer vision
  • Others
• Application
  • Risk management compliance and security
  • Customer service
  • Back office or operations
  • Financial advisory
  • Others
• Sector
  • Large overseas banks
  • Small and medium sized banks
• Geography
  • North America
    • Canada
    • US
  • APAC
    • China
    • India
    • Japan
    • South Korea
  • Europe
    • Germany
    • UK
    • France
  • South America
    • Brazil
  • Middle East and Africa

According to Technavio, There are several factors that are causing the market to flourish during the forecast period, which are as follows: 

• Imperative for enhanced operational efficiency and cost reduction
• Rising demand for hyper personalization and improved customer experience
• Increasing sophistication of financial crime and need for robust risk management

However, the market also witnesses some limitations, which are as follows:

• Data privacy, security, and regulatory compliance complexities
• Integration with legacy systems
• Scarcity of specialized AI talent and need for cultural transformation

Benefits of Buying Global AI In Banking Market Research Report by Technavio

Rich Experience: 20+ years leading global market research, trusted insights across industries.

Unlock Business Potential with Technavio: Maximize ROI with Technavio's tailored market research: deep dives and actionable insights.

Your Guide to Market Success: Empower your business with Technavio's market research and future-proof your decisions.

Market Scope in AI In Banking Market Research Report

Find out which segment is leading the market by accessing the free PDF report

Research Analysis Overview

AI is revolutionizing the banking industry with its applications in lending, offering AI-driven customer experiences through chatbots, predictive modeling, and natural language understanding. Algorithmic trading, blockchain applications, and cybersecurity solutions are enhancing operational efficiency, security, and regulatory compliance. Personalized banking services, financial inclusion initiatives, and investment portfolio optimization are being optimized through data-driven insights. Transactions are processed faster with AI, and customer behavior analysis leads to improved decision making and enhanced customer loyalty. Digital transformation initiatives, cost reduction strategies, and regulatory reporting automation are other benefits of AI in banking. Enhanced security measures and data privacy regulations are addressed through data governance frameworks.

Market Research Overview

In the vast IT software industry, the application software segment holds significant importance, encompassing firms that create specialized software for businesses and consumers. This sector comprises enterprise and technical software, as well as cloud-based solutions. Notably, machine learning models, fraud detection systems, and risk assessment algorithms are pivotal components within the banking industry's application software domain. Technavio's market analysis calculates the global application software market size based on the consolidated revenue generated by these firms, including those offering cloud-based software solutions.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com/