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The global Artificial Intelligence (AI) market size was valued at $68.1 billion in 2021. The market is expected to grow at a CAGR of 14.8% during the forecast period (2021-2026), according to a new report by GlobalData Plc. The BFSI sector is the largest end-use market for AI globally, estimated to grow at a CAGR of 14.7% over the forecast period. 

The major factor driving demand for AI products and services in the BFSI sector is the need for enterprises to streamline customers’ digital experience across multiple channels from dealing with everyday transactions to solving customer queries through automation. Incumbent retail banks still have millions of manual processes requiring entry, validation, and manipulation of data, as well as the creation, uploading, and exporting of data files. There are massive cost reductions in play here, alongside efficiency increases and a clear reduction in operational risk. Much early bank digital transformation was about the front-end – shiny new apps and online banking features – but without doing the heavy lifting on the back-end, to digitize processes end-to-end, none of the anticipated cost reduction, customer experience, and efficiency improvements can happen. 

Deploying AI can help financial institutions prevent data breaches, withstand cyberattacks and ensure security of their operations. In the last decade, cyber threats have become more sophisticated and difficult to track causing severe impact to bank’s reputation and customer loyalty. AI enables BFSI enterprises to predict risk breaches by analyzing the records of users, apps and devices and use the data to detect and raise flags against potential vulnerabilities. Further, AI automates the threat hunting process enabling review of fund-flows, transaction history, customer history, behavioral patterns and credit scores which otherwise is difficult to detect via traditional human processes and prevent these threats, resulting in increased demand for AI in BFSI sector for cybersecurity. 

AI learns from previous patterns and uses the data to identify threats at an early stage that can range from identity theft, email phishing, to fraudulent transactions, loan scams, etc. The growing use mobile banking service has also increased the sharing of financial data with apps and remote devices. To safeguard this data from cyberattacks, banks need to enhance their endpoint detection. ML-based apps implement algorithms that are repeatedly trained to flag unusual user behavior and actions and notify IT teams. 

Need more information? GlobalData's new report covers each of these companies in much more detail, providing an analysis of the following:  


  • Region wise analysis of Artificial intelligence challenges and opportunities  
  • Country specific market figures in terms of market revenues  
  • Bifurcation of market figures by product & services, Enterprise size,  and Vertical  
  • Comprehensive qualitative insights  
  • The comprehensive report provides global market size estimates, revenue numbers, and coverage of key drivers and challenges  


For more insights on the Artificial intelligence market, Download a FREE sample 


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