AI finance market - Forecasts from 2024 to 2029

The AI finance market is expected to grow at a CAGR of 16.50%, reaching a market size of US$32.066 billion in 2029 from US$17.025 billion in 2024.

AI Finance, referred to as AI in Finance or FinTech AI, is the usage of artificial intelligence (AI) technologies in finance to facilitate automation of duties and facts processing, progressed choice making, and customer service, among others. AI Finance employs diverse AI strategies, which include deep learning, herbal language processing, predictive analytics, and robotics system automation. Its extensive applications encompass the subsequent sectors, banking, insurance, asset management, and economic technology companies.

Some notable aspects of AI finance include the automation of financial services, data collection and analysis, and enhancement of customer experiences. Artificial intelligence helps finance increase the effectiveness of concerns by reducing many manual and repetitive tasks and processes - such as entering data, reconciling statements, carrying out compliance procedures, and spotting fraud. Such automation improves operational efficiency, reduces costs, and minimizes errors. AI algorithms analyze very large-scale datasets in a financial context with the aim of identifying relevant patterns, trends, and information to aid in the decision-making processes. Thus, predictive analytics is used to detect emerging trends within markets, customer behaviors, and risks. AI-based conversational agents and virtual personal assistants help customers with offers, queries, and even purchasing. This is made possible through NLP, which enables these systems to understand and respond to customers in real-time, contributing to their overall satisfaction.

Moreover, AI Finance is a guiding concept in the new era of the development of financial technologies and services since it introduces considerable transformations in the business practices of economic entities. It is expected that advancing AI Tools in the coming years will result in the finance sector adopting more AI tools. This will, in turn, lead to more growth and change dynamics in providing financial services.

AI finance market drivers

• Rising technological advancements are contributing to the AI finance market growth

Improvements in artificial intelligence, machine learning, and natural language processing have enhanced the functionality of AI within financial services. Improved algorithms and models allow for more accurate forecasts, risk assessments, and personalized client experiences. Among various services available in the market, SAP Business AI is incorporated into finance applications, which improves productivity, business insight, and security. It automates activities, increases reporting accuracy, and lowers fraud risk. It also aids in anomaly discovery and prevention, freeing finance professionals to concentrate on strategic objectives.

Innovation and transitions in the finance sector continue to be propelled by technological advancements, making AI solutions available for improved decision-making, operational processes, and customer experiences. With the evolution of artificial intelligence, it's expected that banking's future will depend on these technologies even more.

AI finance market geographical outlook

• North America is witnessing exponential growth during the forecast period

Apart from Silicon Valley, Boston, and Seattle, many more centers of technological innovation are located in the North American region, most of which are in the US. It is understandable that these regions experience significant activity due to the emphasis on developing AI. This includes startups, major IT companies, research centers, and venture capital firms like IBM, Oracle, Simplifai.ai, and SAP, all focused on creating AI solutions for the finance sector.

North America has a diverse and well-regulated financial services sector that includes banking, investments, insurance, fintech, and various regulatory authorities, including traditional and automated bodies. The region's well-developed financial structure and ecosystem are favorable to embracing AI technology across various industries within the finance sector.

Moreover, the tools and other guiding factors proving the most beneficial in the field of AI finance in North America will be applicable for a long time owing to the continuous advancement in technology and investment, favorable policies, and the large pool of innovative companies and talent within reach.

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Report Coverage:

• Historical data & forecasts from 2022 to 2029
• Growth Opportunities, Challenges, Supply Chain Outlook, Regulatory Framework, Customer Behaviour, and Trend Analysis
• Competitive Positioning, Strategies, and Market Share Analysis
• Revenue Growth and Forecast Assessment of segments and regions including countries
• Company Profiling (Strategies, Products, Financial Information, and Key Developments among others)

The AI finance market is analyzed into the following segments:

By Application

• Back Office
• Middle office
• Front Office

By Users

• Personal Finance
• Consumer Finance
• Corporate Finance

By Type

• Natural Language Processing
• Large Language Models
• Sentiment analysis
• Image recognition
• Others

By Geography

• North America
• USA
• Canada
• Mexico
• South America
• Brazil
• Argentina
• Others
• Europe
• Germany
• France
• UK
• Spain
• Others
• Middle East and Africa
• Saudi Arabia
• UAE
• Israel
• Others
• Asia Pacific
• China
• Japan
• India
• South Korea
• Indonesia
• Taiwan
• Others