Latest News- Applied AI In Finance Market: Solutions is expected to lead the Component segment during 2025-2029

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

The Applied AI In Finance Market is expected to grow at a CAGR of 33.2% during 2024 and 2029. During this period, the market is also expected to show a growth of USD 32432.1 million. The financial services industry is experiencing a significant shift in the application of artificial intelligence (AI), with generative AI and large language models (LLMs) evolving from experimental technologies to mission-critical business tools. Following the public emergence of powerful generalist models, there has been an aggressive pivot towards developing and deploying specialized, domain-specific AI solutions. This trend goes beyond using off-the-shelf tools and focuses on fine-tuning models on proprietary financial data or building them from scratch to create a sustainable competitive advantage. These specialized models are trained on curated, multi-modal datasets consisting of decades of market data, earnings call transcripts, corporate filings, broker research, and internal documentation. This strategic approach to AI adoption enables financial institutions to gain a deeper understanding of market trends and make informed decisions based on accurate and timely insights. 

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Which Factors Are Causing a Surge in Market Growth?

The market is segmented based on

• Component
  • Solutions
  • Services
• Deployment
  • Cloud
  • On premises
• Application
  • Fraud detection and prevention
  • Business analytics and reporting
  • Risk management
  • Customer service
  • Others
• 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
• Proliferation of big data and accelerated advancements in AI technologies
• Escalating need for sophisticated fraud detection and risk management

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

• Data privacy, security, and governance complexities
• Black box problem, explainability, and regulatory scrutiny
• High implementation costs, talent scarcity, and legacy system integration

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Market Scope in Applied AI In Finance Market Research Report

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Research Analysis Overview

In the realm of finance, Artificial Intelligence (AI) is revolutionizing various sectors through applications such as Quantitative Finance AI and Computational Finance AI. AI is used for financial forecasting, regulatory compliance, wealth management, algorithmic trading, market microstructure analysis, derivative pricing, insurance underwriting, financial reporting, audit finance, ethics, and more. Cloud computing and data mining are essential technologies facilitating the integration and analysis of vast financial data sets for these AI applications.

Market Research Overview

The Applied Artificial Intelligence (AI) in Finance market falls under the broader global IT software market, specifically the application software segment. This sector encompasses businesses specializing in algorithmic trading strategies and high-frequency trading algorithms. Technavio's market analysis covers revenue generated by companies providing IT software solutions, including cloud-based applications. These firms cater to the business sector, focusing on enterprise and technical software, excluding those engaged in interactive home entertainment or systems software production.. Industries are leveraging the products belonging to the market for customer engagement, transactional notifications, and promotional offers.

Technavio Research
Jesse Maida
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