- A new study by Research & Markets revealed that AI is being increasingly implemented for data analysis and other tasks in fintech companies.
- The AI in fintech will be worth circa $22.6bn by 2025 with a CAGR of 23.37%.
- Highlighting the benefits of AI, ML and blockchain technology in fintech, the report said tech companies and those in other sectors investing in them are witnessing massive benefits.
If you think machines will take over the world, you might be right. In the last decade, the use of artificial intelligence in companies has skyrocketed with most of the tasks being unmanned and automated. From healthcare to food delivery, no sector is untouched by the power of robots.
The study specified that the growth rate of the technology is expected to be 23.37% between 2020 and 2025. From improving customer support and data analysis to fraud detection and compliance, AI has a host of benefits for fintech startups as well as established businesses.
“AI improves results by applying methods derived from the aspects of human intelligence but beyond human scale. The computational arms race since the past few years has revolutionized the Fintech companies. Further, data and the near-endless amounts of information are transforming AI to unprecedented levels where smart contracts will merely continue the market trend,” the report detailed.
Indeed, capitalizing on AI systems can help companies perform complex automation processes and tasks therefore ensuring humans to focus on business growth. For instance, the report mentioned a deal between Traydstream, which scans trade documents by using AI technology and Infosys Finacle to automate trade finance. Per the partnership which took place last month, Finacle’s blockchain tech deemed Finacle TradeConnect would now be integrated with Traydstream’s platform reducing time and mistakes when monitoring trade rules.
The report said that alongside AI market players are also using ML-based fraud detection solutions therefore boosting transparency between businesses. Naming a few giants which will drive the future include IBM, Intel and Microsoft Corporation.
Highlighting the upcoming trends in AI and Fintech, the report said:
“Asset management companies can gain substantial benefits through the adoption of AI and ML.
“These technologies can help provide real-time actionable insights and facilitate portfolio management decisions. Subsets of AI can empower asset managers to streamline processes to optimize investment decisions and processes.”
Businesses in all sectors embrace AI
In addition to tech companies investing in AI and ML, businesses in other sectors have started to realize the benefits of going digital. After the global pandemic impacted brick and mortar retailers which inevitably were forced to shut shop, the drive to implement contactless payments and using AI to assess customer behavior has escalated.
Concluding on the future of AI, the report suggested that the market is moving towards “fragmented owing to the presence of many global players in the market.”
“Further various acquisitions and collaboration of large companies are expected to take place shortly, which focuses on innovation,” it said.