- The AI banking market is expected to experience significant growth up to 2028.
- North America will continue its dominance in the AI banking market.
Integrating AI in the banking sector reshapes traditional banking models and profoundly transforms the entire industry. According to BanklessTimes.com projections, AI in the banking market will grow by 306% to reach $59 billion by 2028.
BanklessTimes CEO Jonathan Merry commented:
Banks are looking for ways to improve operations while reducing expenses, and AI offers that solution. There is no doubt that more banks will enter the market to acquire them. Banks also leverage AI to automate repetitive tasks, accelerating tasks like document verification and data entry, leaving staff to focus on more strategic tasks.
Current Market Landscape
As of 2023, the value of global AI in banking was approximately US$13.34 billion, with North America dominating the market. This dominance is projected to persist until 2028, fueled by Canada's impressive 33.3% growth rate from 2023 to 2030. Meanwhile, Mexico is expected to grow slightly slower, with a 32.1% compound annual growth rate (CAGR).
The AI market in banking is projected to grow at a CAGR of 32.41% from 2023 to 2028. There is a high demand for AI-driven solutions to address banking challenges such as financial crimes and enhance the customer experience.
Several banks are using AI in customer service through virtual assistance and chatbots. However, due to its analytic skills, most financial institutions have begun using it for risk management, wealth management, and fraud detection.
Future of AI Banking Market
The future of AI in the banking sector looks promising as every industry recognizes its potential, particularly financial institutions. AI's effectiveness ensures banks can enhance profitability while minimizing costs.
AI is expected to remain steadfast in the market as banks continue to depend on its capabilities. Currently, almost 60% of banks use it for data analysis. 59% believe it increases productivity, and for this reason, they prefer it. Additionally, 54% believe using AI reduces operation costs and is ideal for savings.
The convergence of human expertise and AI capabilities will redefine the role of banking professionals. Augmented intelligence empowers employees with AI-driven insights, enabling them to make data-driven decisions, personalize customer interactions, and focus on high-value tasks that require human judgment and creativity.
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