Artificial Intelligence (AI) and automation sales in the banking market are projected to reach US$ 182 Bn, exhibiting growth at a CAGR of 22.8% during the forecast period, 2022-2032.
Per the study, the global AI and automation in banking market is anticipated to reach a valuation of US$ 23.3 Bn in 2022, going up from US$ 16.5 Bn in 2021. Growing preference for personalized financial services is increasing the adoption of advanced services in banking sector.
In effect, leading financial institutions such as JP Morgan, Morgan Stanley, and others are integrating technologies such as artificial intelligence (AI) and big data analytics in their systems. This is boosting the adoption of AI and automation in banking over the coming years.
Requirement for real-time data for stock market and to identify money laundering techniques in the banking sector will also drive the demand for automated AI banking systems over the forthcoming decade.
Subsequently, proliferation of work from home trend is augmenting the implementation of technological advancements such as AL and ML across financial institutions. The adoption of such technologies is expected to fuel sales in the market.
Also, rising use of mobile banking activities is simplifying the transaction processes. However, the generation of massive amount of data in the process is encouraging the usage of AI and automation in banking.
Besides this, funding offered by financial institutions and governments for the enhancement of security systems and data management services is likely to create lucrative opportunities for the market.
According to the Australian Government Productivity Commission, around 5 terabytes of digital data was generated globally in 2002, but it is now generated in almost 2 days. Hence, almost 90% of the world’s data is generated in just 2 years.
Thus, as per Institute for Development and Communication (IDC), nearly 44 trillion gigabytes of data were generated in 2020. The generation of such a massive amount of data in the financial sector is anticipated to fuel the demand for AI and automation in banking.