Generative Artificial Intelligence (AI) in Lending Market Report 2025

This Generative Artificial Intelligence (AI) in Lending market report delivers an in-depth analysis of the market’s key characteristics, including size, growth potential, and segmentation. It provides a detailed breakdown of the market across major regions and leading countries, highlighting historical data and future growth projections. The report also examines the competitive landscape, market share insights, emerging trends, and strategic developments shaping the market.

The generative artificial intelligence (AI) in lending market size has grown exponentially in recent years. It will grow from $3.21 billion in 2024 to $3.88 billion in 2025 at a compound annual growth rate (CAGR) of 20.8%. The growth in the historic period can be attributed to increasing computing power, increasing availability of data, increasing financial corporations, increasing retail investors, and increasing consumer interest.

The generative artificial intelligence (AI) in lending market size is expected to see exponential growth in the next few years. It will grow to $8.17 billion in 2029 at a compound annual growth rate (CAGR) of 20.5%. The growth in the forecast period can be attributed to expanding lending options, expanding the finance sector, expanding neobanks, the growth of real-time payments, and expanding the digital ecosystem. Major trends in the forecast period include voice and speech recognition integration, integration with blockchain technology, smart contract integration, augmented reality (AR) for loan visualization, and cross-channel AI integration.

The rise in financial transactions is anticipated to boost the growth of generative artificial intelligence (AI) in the lending market moving forward. Financial transactions refer to exchanges of value between two parties, involving the transfer of money or financial assets through payments, purchases, or investments. This increase in financial transactions is attributed to technological advancements in online banking and digital currencies, expanded credit availability, and the emergence of various financial instruments. Generative AI in lending enhances financial transactions by automating and personalizing the loan application process, improving risk assessment, and streamlining decision-making, resulting in faster approvals, more accurate credit evaluations, and a more efficient lending experience. For instance, in September 2023, UK Finance, a trade association for the banking and finance industry in the UK, reported that in 2022, the country experienced 45.7 billion payments, an increase from 40.4 billion in 2021. Notably, debit cards accounted for 50% of all transactions for the first time, while cash payments rose to 6.4 billion. Furthermore, contactless payments surged by 30%, reaching 17 billion, with business transactions making up 13% of the total. Hence, the growing number of financial transactions is driving the expansion of generative AI in the lending market.

Key players in the generative AI lending market are focusing on developing advanced solutions, such as AI-driven lending intelligence companions, to enhance various aspects of the lending process. An AI lending intelligence companion is a tool or platform that assists lenders throughout the loan lifecycle by offering insights, recommendations, and automation. For instance, in February 2024, Zest AI, a US-based financial platform developer, introduced LuLu, an AI-powered lending intelligence companion designed to improve the efficiency and effectiveness of lending organizations. This tool allows users to ask questions in natural language and receive tailored, accurate responses almost instantly, thus streamlining access to critical lending insights and performance metrics.

In July 2022, Zest AI partnered with Origence to enhance automated underwriting processes for credit unions. This collaboration aims to enable more equitable credit decisions by utilizing a broader range of data points compared to traditional methods. Origence, a US-based company, is involved in providing generative AI solutions in lending.

Major companies operating in the generative artificial intelligence in lending market are Google LLC, Microsoft Corporation, JPMorgan Chase & Co., Morgan Stanley, Adobe Inc., Experian plc, Equifax Inc., Fair Isaac Corporation, Upstart Network Inc., Credit Karma Inc., Zycus Inc., C3.ai Inc., DataRobot Inc., Tink AB, Kiva Microfunds, Kabbage Inc., Zest AI Inc., Scienaptic AI Inc., Provenir Inc., Underwrite.ai Inc., Mihup Communications Pvt. Ltd., nimbusnext, Kavout Corporation.

North America was the largest region in the generative artificial intelligence in lending market in 2024. The regions covered in the generative artificial intelligence in lending market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative artificial intelligence in lending market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in lending involves using advanced AI techniques to create, improve, or optimize different facets of the lending process. Generative AI in lending employs sophisticated algorithms to analyze and synthesize borrower data, allowing lenders to develop personalized loan offers, automate decision-making processes, and enhance risk assessment models for more precise and efficient lending practices.

The primary deployment modes for generative AI in lending are cloud-based and on-premises. Cloud-based deployment provides scalable and on-demand access to AI resources, enabling flexible and cost-effective implementation of AI-driven solutions for various tasks. This mode is used for applications such as credit scoring, loan origination, risk assessment, fraud detection, and customer service. These solutions are utilized by a range of end users, including banks, credit unions, fintech companies, and others.

The generative artificial intelligence in lending market research report is one of a series of new reports that provides generative artificial intelligence in lending market statistics, including generative artificial intelligence in lending industry global market size, regional shares, competitors with a generative artificial intelligence in lending market share, detailed generative artificial intelligence in lending market segments, market trends and opportunities, and any further data you may need to thrive in the generative artificial intelligence in lending industry. This generative artificial intelligence in lending market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The generative artificial intelligence in lending market includes revenues earned by entities by providing services such as automated loan processing, customer service and chatbots, and document generation and management. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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