Analytics Insight predicts that the Global Artificial Intelligence market revenue in the Banking sector will touch a whopping USD48.3 billion by 2025 compared to USD13.7 billion in 2019 growing at a CAGR of 28.6% during the forecast period, 2019-2024. The BFSI sector has always been resistant to changes, especially concerning technologies. However, there has been a surge in AI adoption across the financial sector in recent years, which has redefined the operations and processes in the industry.
The financial and banking industry is highly customer-based and in the current scenario consumers desperately look for personalized, easier, and digital services.
People have shifted to the digital space, which has given rise to digital banking and open banking. Artificial intelligence has enabled the BFSI sector to meet the demands of a smarter consumer base. In a post-pandemic world, this drastic growth of AI in banking will attract more audiences and will pave the way for innovations. The emergence of fintech players has positively impacted the banking industry's growth by providing digital assistance and compliance. AI has effectively led the BFSI market to enhanced operational efficiency, intelligent automation, and customization.
Conversational AI has been a great addition to the banking sector. It improves customer experience, enables cost optimization, and unburdens the employees from mundane tasks. Another positive aspect of AI adoption in the financial industry is fraud detection. AI has been widely accepted and appreciated in precise, real-time fraud prediction and detection. A Business Today report quotes RBI's annual report, which revealed a massive increase in banking frauds in the 2019-20 fiscal year. We should not forget the cyberattacks have also become sophisticated with the advent of disruptive techs. Hence, AI is a necessary step towards preventing more data breaches and fraud in the financial sector.
The future of the banking sector with AI is intelligent and innovative. With an AI infrastructure, the banking sector will be able to serve a larger audience with minimal human intervention and maximum efficiency.
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