A report by SNS Insider projects that the AI in fintech market, valued at $12.2 billion in 2023, is expected to grow to $61.6 billion by 2032, expanding at a compound annual growth rate (CAGR) of 19.72%. The growth is driven by increasing adoption of AI for fraud detection and risk management.
AI technologies, such as machine learning algorithms for fraud detection and AI-based chatbots for customer support, are reshaping traditional financial models, enhancing customer experience, reducing risks, and improving decision-making in real time. AI’s ability to process large volumes of data allows for more precise risk assessments, predictions, and personalized services, enhancing both customer satisfaction and operational efficiency. Early adopters gain a competitive advantage in the rapidly evolving market. AI also plays a crucial role in enhancing cybersecurity across financial systems by detecting patterns and anomalies in real-time, pivotal in identifying and preventing fraudulent activities. Furthermore, AI-powered chatbots streamline customer service operations, allowing users to resolve issues anytime, anywhere, boosting both efficiency and user experience