India Artificial Intelligence (AI) in BFSI Market Size Zooming More Than 5.6X to Touch USD 4.2 Billion by 2029

Published | 07 September 2023

India artificial intelligence (AI) in BFSI market is flourishing because of increasing customer expectations for personalized and seamless banking experiences and rising adoption of AI technologies by banks and financial institutions to improve their operations and services.

BlueWeave Consulting, a leading strategic consulting and market research firm, in its recent study, estimated the India artificial intelligence (AI) in BFSI market size at USD 739.59 million in 2022. During the forecast period between 2023 and 2029, BlueWeave expects India artificial intelligence (AI) in BFSI market size to grow at a robust CAGR of 28.2% reaching a value of USD 4,209.25 million by 2029. Major growth drivers for the India artificial intelligence (AI) in BFSI market include an increasing customer service, rising fraud detection, and growing personalized financial services. AI-driven chatbots and virtual assistants elevate customer support by delivering tailored recommendations and expedited issue resolution, culminating in heightened satisfaction and swift responses. Additionally, the pivotal emphasis on upholding data privacy and security emerges as a critical driving force. Organizations prioritize these elements throughout AI integration to forge and sustain customer confidence while adhering to regulatory stipulations. Furthermore, AI algorithms assume a central role in identifying and preventing fraudulent activities within the BFSI domain, reinforcing financial stability and trust. Notably, Machine Learning (ML) algorithms adeptly evaluate risks, ascertain insurance premiums, and streamline informed underwriting decisions, particularly advantageous for the insurance sector. The prevalence of AI-powered robo-advisory platforms further simplifies investment choices for clients, aligning with their financial objectives and risk profiles. Consequently, these core elements are anticipated to propel India's AI in BFSI market throughout the forecast period. However, lack of skilled professionals in AI and data privacy and security concerns are expected to restrain the growth of the overall market.

India Artificial Intelligence in BFSI Market – Overview

India artificial intelligence in BFSI market refers to the sector-specific application of artificial intelligence (AI) technologies within India's Banking, Financial Services, and Insurance (BFSI) industry. In this context, AI encompasses various machine learning (ML) algorithms, natural language processing (NLP), and other AI-driven tools and solutions designed to improve and optimize operations and services within the BFSI sector. The market involves the integration and deployment of AI-powered systems, including chatbots, virtual assistants, recommendation engines, and fraud detection algorithms, to enhance customer experiences, streamline processes, assess risks, offer personalized financial services, and ensure regulatory compliance within the BFSI domain. The primary objectives of the India artificial intelligence in BFSI Market are to boost efficiency, mitigate risks, meet rising customer expectations for personalized services, and maintain data privacy and security while complying with relevant regulatory guidelines. Also, the market reflects the growing trend of leveraging AI technologies to revolutionize customer service, risk management, and financial product offerings in the BFSI sector in India. It addresses the evolving needs of financial institutions and insurance companies to stay competitive and deliver advanced, efficient, and secure services in the rapidly changing digital landscape.

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Impact of COVID-19 on India Artificial Intelligence (AI) in BFSI Market

Covid-19 pandemic had a positive impact on the India artificial intelligence (AI) in BFSI market. Social distancing measures and remote work necessitated a heightened reliance on digital channels and AI-driven solutions in banking and financial services. AI was employed for customer support, fraud detection, and risk assessment to address evolving challenges. However, the pandemic also underscored the importance of data security and privacy in an increasingly digital landscape. As the BFSI sector adapted to the "new normal," AI played a pivotal role in enhancing operational resilience and customer experiences while ensuring stringent security measures were in place.

India Artificial Intelligence in BFSI Market – By Technology

Based on technology, the India artificial intelligence (AI) in BFSI market is divided into Machine Learning (ML), Natural Language Processing (NLP), Computer Vision, and Speech Recognition segments. The machine learning (ML) segment is expected to hold the highest share in the India artificial intelligence (AI) in BFSI market by technology during the forecast period by technology. Machine learning algorithms excel in analyzing vast datasets to uncover patterns, optimize risk assessment, and enhance fraud detection—critical functions in the BFSI sector. They also power chatbots, robo-advisors, and personalization engines, enhancing customer experiences and operational efficiency. Additionally, as data volumes continue to grow, BFSI institutions increasingly rely on ML for predictive analytics, aiding in informed decision-making. Overall, ML's adaptability and proven results position it as the primary technology driver for the India AI in BFSI market.

Competitive Landscape

Major players operating in the India artificial intelligence in BFSI market include Razorpay, CreditMate, LendingKart, MSwipe, CogNext, Capital Float, Credgenics, HighRadius, INDmoney, and INDWealth. To further enhance their market share, these companies employ various strategies, including mergers and acquisitions, partnerships, joint ventures, license agreements, and new product launches.

Don’t miss the business opportunity in the India Artificial Intelligence (AI) in BFSI Market. Consult our analysts to gain crucial insights and facilitate your business growth.

The in-depth analysis of the report provides information about growth potential, upcoming trends, and statistics of India Artificial Intelligence (AI) in BFSI Market. It also highlights the factors driving forecasts of total market size. The report promises to provide recent technology trends in India Artificial Intelligence (AI) in BFSI Market and industry insights to help decision-makers make sound strategic decisions. Furthermore, the report also analyzes the growth drivers, challenges, and competitive dynamics of the market.

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