Artificial Intelligence (AI) and Advanced Machine Learning (ML) in BFSI Market
Artificial Intelligence (AI) & Advanced Machine Learning (ML) in BFSI Market Size, Share & Trends Analysis Report by Component (Solution and Services), by Deployment (Cloud and On-Premises), and by Application (Chatbots, Credit Scoring, Quantitative and Asset Management, Fraud Detection, and Others), Forecast Period (2025-2035)
Industry outlook
AI & advanced ML in the BFSI market is anticipated to grow at a CAGR of 15.5% during the forecast period (2025-2035). The growth of the AI and advanced machine learning market in the Banking, Financial Services, and Insurance (BFSI) sector is driven by the increasing demand for intelligent automation, enhanced risk management, and data-driven decision-making processes. Financial institutions are rapidly adopting AI technologies to streamline operations, improve customer service, and gain competitive advantages through advanced analytics and predictive modeling. The integration of AI enables banks and insurance companies to automate complex tasks, detect fraudulent activities, personalize customer interactions, and improve credit scoring and underwriting accuracy.
Segmental Outlook
- Based on the component, the market is segmented into solutions and services.
- Based on the deployment, the market is segmented into cloud and on-premises.
- Based on the application, the market is segmented into chatbots, credit scoring, quantitative and asset management, fraud detection, and others.
Fraud Detection Segment Holds Considerable Share of the Market
The global AI and advanced machine learning market in the BFSI sector is experiencing significant growth, primarily driven by the increasing need for fraud detection. Financial institutions are leveraging AI technologies to analyze vast datasets in real time, enabling the early identification of suspicious activities. Advanced machine learning algorithms enhance the accuracy and efficiency of fraud prevention systems. According to a new poll conducted by Certified Fraud Examiners (ACFE) and analytics pioneer SAS in 2022, the use of artificial intelligence (AI) and machine learning (ML) for fraud detection increased internationally. Department of Financial Services in a social media post stated that banks were directed to adopt advanced technologies, including AI/ML Solutions. According to the poll, fraud examiners identified this and other anti-fraud tech developments in a cross-industry that are extensively spreading. In 2024, data breaches in the financial sector and the cost of a breach soared to $4.88 million, and also affected customers.
Global AI & Advanced ML in BFSI Market Share By Deployment, 2024 (%)
Regional Outlook
The global AI & advanced ML in BFSI market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, Russia and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, ASEAN economies, Australia and New Zealand and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America. Among these, Asia-Pacific is estimated to be the fastest-growing region owing to the growing adoption of AI & ML in banks of emerging economies of the region, such as India & China. In August 2023, the central bank (RBI) selected McKinsey and Company India LLP and Accenture Solutions Pvt Ltd India to develop systems that use AI and ML for supervisory functions.
The North American region held a Considerable Share in the Global AI & Advanced ML in BFSI Market
The North American market for AI & advanced ML in BFSI is growing owing to the implementation of AI and superior machine learning (ML) solutions in the BFSI industry. This expansion is largely fostered by enhanced operational efficiency, better customer experience, and enhanced fraud detection powers. The convergence of AI and ML into critical segments of credit scoring, risk management, customized financial services, and robotic customer care is revolutionizing the BFSI industry in North America. The pace of uptake of AI-powered technology by US and Canadian banks is driven by the region's high technological backbone, high digitalization levels, and pro-innovation regulatory landscape in financial services.
Market Players Outlook
The major companies serving global AI & advanced ML in BFSI market include Amazon Web Services Inc., Betterment Holdings, ComplyAdvantage.com, DataToBiz, Google Cloud, and Intel Corp. The market players are considerably contributing to the market growth by the adoption of various strategies, including mergers and acquisitions, partnerships, collaborations, funding, and new product launches, to stay competitive in the market.
Recent Development
- In April 2025, Lloyds Banking Group took a significant step in its strategic transformation, leveraging the artificial intelligence (AI) and data science capabilities of Google Cloud to transform customer and colleague experience. Lloyds Banking Group migration has also unlocked new capabilities and is also tooling across the Group’s business areas, allowing it to further develop ML and AI capability and deploy advanced AI models.
The Report Covers
- Market value data analysis of 2024 and forecast to 2035.
- Annualized market revenues ($ million) for each market segment.
- Country-wise analysis of major geographical regions.
- Key companies operating in the global AI & advanced ML in BFSI market. Based on the availability of data, information related to new products and relevant news is also available in the report.
- Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.
- Analysis of market-entry and market expansion strategies.
- Competitive strategies by identifying ‘who-stands-where’ in the market.
1. Report Summary
• Current Industry Analysis and Growth Potential Outlook
• Global AI & Advanced Machine Learning in BFSI Market Sales Analysis – Component | Deployment | Application ($ Million)
1.1. Research Methodology
• Primary Research Approach
• Secondary Research Approach
1.2. Market Snapshot
2. Market Overview and Insights
2.1. Scope of the Study
2.2. Analyst Insight & Current Market Trends
2.2.1. Key Global AI & Advanced Machine Learning in BFSI Industry Trends
2.2.2. Market Recommendations
2.2.3. Conclusion
3. Market Determinants
3.1. Market Drivers
3.1.1. Drivers For Global AI & Advanced Machine Learning in BFSI Market: Impact Analysis
3.2. Market Pain Points and Challenges
3.2.1. Restraints For Global AI & Advanced Machine Learning in BFSI Market: Impact Analysis
3.3. Market Opportunities
4. Competitive Landscape
4.1. Competitive Dashboard – AI & Advanced Machine Learning in BFSI Market Revenue by Manufacturers
4.2. Key Company Analysis
4.2.1. Overview
4.2.2. Product Portfolio
4.2.3. Financial Analysis (Subject to Data Availability)
4.2.4. SWOT Analysis
4.2.5. Business Strategy
4.3. Top Winning Strategies by Market Players
4.3.1. Merger and Acquisition
4.3.2. Product Launch
4.3.3. Partnership And Collaboration
5. Global AI & Advanced Machine Learning in BFSI Market by Component ($ Million)
5.1. Solution
5.2. Services
6. Global AI & Advanced Machine Learning in BFSI Market by Deployment ($ Million)
6.1. On-Premises
6.2. Cloud-Based
7. Global AI & Advanced Machine Learning in BFSI Market by Application ($ Million)
7.1. Chatbots
7.2. Credit Scoring
7.3. Quantitative & Asset Management
7.4. Fraud Detection
7.5. Others (Digital Assistance, Sales & Marketing, Customer Segmentation)
8. Regional Analysis
8.1. North American AI & Advanced Machine Learning in BFSI Market Sales Analysis – Component| Deployment | Application | Country ($ Million)
8.1.1. United States
8.1.2. Canada
8.2. European AI & Advanced Machine Learning in BFSI Market Sales Analysis – Component | Deployment| Application | Country ($ Million)
8.2.1. UK
8.2.2. Germany
8.2.3. Italy
8.2.4. Spain
8.2.5. France
8.2.6. Russia
8.2.7. Rest of Europe
8.3. Asia-Pacific AI & Advanced Machine Learning in BFSI Market Sales Analysis – Component| Deployment | Application | Country ($ Million)
8.3.1. China
8.3.2. Japan
8.3.3. South Korea
8.3.4. India
8.3.5. Australia & New Zealand
8.3.6. ASEAN Countries (Thailand, Indonesia, Vietnam, Singapore, And others)
8.3.7. Rest of Asia-Pacific
8.4. Rest of the World AI & Advanced Machine Learning in BFSI Market Sales Analysis – Component| Deployment | Application | Country ($ Million)
8.4.1. Latin America
8.4.2. Middle East and Africa
9. Company Profiles
9.1. Accenture plc
9.2. Altair Engineering Inc.
9.3. Capgemini SE
9.4. Cognizant Technology Solutions Corp.
9.5. DataRobot, Inc.
9.6. Fair Isaac Corp.
9.7. Finastra Ltd.
9.8. IBM Corp.
9.9. Infosys Ltd.
9.10. JPMorgan Chase & Co.
9.11. Kyndryl Inc.
9.12. NVIDIA Corp.
9.13. Mastercard Inc.
9.14. Oracle Corp.
9.15. PricewaterhouseCoopers International Ltd.
9.16. SAS Institute Inc.
9.17. Tata Consultancy Services Ltd.
9.18. ThoughtWorks Inc.
9.19. Visa Inc.
9.20. ZestFinance Inc
1. Global AI & Advanced Machine Learning In BFSI Market Research And Analysis By Component, 2024-2035 ($ Million)
2. Global AI & Advanced Machine Learning In BFSI Solution Market Research And Analysis By Region, 2024-2035 ($ Million)
3. Global AI & Advanced Machine Learning In BFSI Services Market Research And Analysis By Region, 2024-2035 ($ Million)
4. Global AI & Advanced Machine Learning In BFSI Market Research And Analysis By Deployment, 2024-2035 ($ Million)
5. Global On-Premises AI & Advanced Machine Learning In BFSI Market Research And Analysis By Region, 2024-2035 ($ Million)
6. Global Cloud-Based AI & Advanced Machine Learning In BFSI Market Research And Analysis By Region, 2024-2035 ($ Million)
7. Global AI & Advanced Machine Learning In BFSI Market Research And Analysis By Application, 2024-2035 ($ Million)
8. Global AI & Advanced Machine Learning In BFSI For Chatbots Market Research And Analysis By Region, 2024-2035 ($ Million)
9. Global AI & Advanced Machine Learning In BFSI For Credit Scoring Market Research And Analysis By Region, 2024-2035 ($ Million)
10. Global AI & Advanced Machine Learning in BFSI For Quantitative & Asset Management Market Research And Analysis By Region, 2024-2035 ($ Million)
11. Global AI & Advanced Machine Learning In BFSI For Fraud Detection Market Research And Analysis By Region, 2024-2035 ($ Million)
12. Global AI & Advanced Machine Learning In BFSI For Other Application Market Research And Analysis By Region, 2024-2035 ($ Million)
13. Global AI & Advanced Machine Learning In BFSI Market Research And Analysis By Region, 2024-2035 ($ Million)
14. North America AI & Advanced Machine Learning In BFSI Market Research And Analysis By Country, 2024-2035 ($ Million)
15. North American AI & Advanced Machine Learning In BFSI Market Research And Analysis By Component, 2024-2035 ($ Million)
16. North American AI & Advanced Machine Learning In BFSI Market Research And Analysis By Deployment, 2024-2035 ($ Million)
17. North American AI & Advanced Machine Learning In BFSI Market Research And Analysis By Application, 2024-2035 ($ Million)
18. European AI & Advanced Machine Learning In BFSI Market Research And Analysis By Country, 2024-2035 ($ Million)
19. European AI & Advanced Machine Learning In BFSI Market Research And Analysis By Component, 2024-2035 ($ Million)
20. European AI & Advanced Machine Learning In BFSI Market Research And Analysis By Deployment, 2024-2035 ($ Million)
21. European AI & Advanced Machine Learning In BFSI Market Research And Analysis By Application, 2024-2035 ($ Million)
22. Asia-Pacific AI & Advanced Machine Learning In BFSI Market Research And Analysis By Country, 2024-2035 ($ Million)
23. Asia-Pacific AI & Advanced Machine Learning In BFSI Market Research And Analysis By Component, 2024-2035 ($ Million)
24. Asia-Pacific AI & Advanced Machine Learning In BFSI Market Research And Analysis By Deployment, 2024-2035 ($ Million)
25. Asia-Pacific AI & Advanced Machine Learning In BFSI Market Research And Analysis By Application, 2024-2035 ($ Million)
26. Rest Of The World AI & Advanced Machine Learning In BFSI Market Research And Analysis By Region, 2024-2035 ($ Million)
27. Rest Of The World AI & Advanced Machine Learning In BFSI Market Research And Analysis By Component, 2024-2035 ($ Million)
28. Rest Of The World AI & Advanced Machine Learning In BFSI Market Research And Analysis By Deployment, 2024-2035 ($ Million)
29. Rest Of The World AI & Advanced Machine Learning in BFSI Market Research And Analysis By Application, 2024-2035 ($ Million)
1. Global AI & Advanced Machine Learning In BFSI Market Share By Component, 2024 Vs 2035 (%)
2. Global AI & Advanced Machine Learning In BFSI Solution Market Research And Analysis By Region, 2024-2035 ($ Million)
3. Global AI & Advanced Machine Learning In BFSI Services Market Research And Analysis By Region, 2024-2035 ($ Million)
4. Global AI & Advanced Machine Learning In BFSI Market Share By Deployment, 2024 Vs 2035 (%)
5. Global On-premises AI & Advanced Machine Learning In BFSI Market Share By Region, 2024 Vs 2035 (%)
6. Global Cloud-Based AI & Advanced Machine Learning In BFSI Market Share By Region, 2024 Vs 2035 (%)
7. Global AI & Advanced Machine Learning In BFSI Market Share By Application, 2024 Vs 2035 (%)
8. Global AI & Advanced Machine Learning In BFSI For Chatbots Market Share By Region, 2024 Vs 2035 (%)
9. Global AI & Advanced Machine Learning In BFSI For Credit Scoring Market Share By Region, 2024 Vs 2035 (%)
10. Global AI & Advanced Machine Learning In BFSI For Quantitative & Asset Management Market Share By Region, 2024 Vs 2035 (%)
11. Global AI & Advanced Machine Learning In BFSI For Fraud Detection Market Share By Region, 2024 Vs 2035 (%)
12. Global AI & Advanced Machine Learning In BFSI For Power & Energy Market Share By Region, 2024 Vs 2035 (%)
13. Global AI & Advanced Machine Learning In BFSI For Other Application Market Share By Region, 2024 Vs 2035 (%)
14. Global AI & Advanced Machine Learning In BFSI Market Share By Region, 2024 Vs 2035 (%)
15. US AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
16. Canada AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
17. UK AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
18. France AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
19. Germany AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
20. Italy AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
21. Spain AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
22. Russia AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
23. Rest of Europe AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
24. India AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
25. China AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
26. Japan AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
27. South Korea AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
28. Australia and New Zealand AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
29. ASEAN AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
30. Rest of Asia-Pacific AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
31. Rest Of The World AI & Advanced Machine Learning In BFSI Market Size, 2024-2035 ($ Million)
FAQS
The size of the Artificial Intelligence (AI) and Advanced Machine Learning (ML) in BFSI market in 2024 is estimated to be around USD 25.4 billion.
North America holds the largest share in the Artificial Intelligence (AI) and Advanced Machine Learning (ML) in BFSI market.
Leading players in the Artificial Intelligence (AI) and Advanced Machine Learning (ML) in BFSI market include Amazon Web Services Inc., Betterment Holdings, ComplyAdvantage.com, DataToBiz, Google Cloud, and Intel Corp.
Artificial Intelligence (AI) and Advanced Machine Learning (ML) in BFSI market is expected to grow at a CAGR of 15.5% from 2025 to 2035.
Increasing automation, fraud detection, and demand for personalized financial services drive AI and ML growth in the BFSI market.