Generative Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) Market Report 2025

This Generative Artificial Intelligence (AI) in Banking, Financial Services, and Insurance (BFSI) 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 banking, financial services, and insurance (bfsi) market size has grown exponentially in recent years. It will grow from $1.88 billion in 2024 to $2.37 billion in 2025 at a compound annual growth rate (CAGR) of 26.3%. The growth in the historic period can be attributed to increasing utilization of generative artificial intelligence (AI) in fraud detection, rise in personalized customer experiences, increasing focus on adoption of chatbots and virtual assistants in banks, regulatory compliance, and risk management, and operational efficiency and cost reduction.

The generative artificial intelligence (AI) in banking, financial services, and insurance (bfsi) market size is expected to see exponential growth in the next few years. It will grow to $6.01 billion in 2029 at a compound annual growth rate (CAGR) of 26.1%. The growth in the forecast period can be attributed to growing demand for enhanced customer service, generative models to provide personalized customer interactions, artificial intelligence (AI) being used to design personalized financial products, growing need for real-time fraud detection in the banking sector, and rising investments in artificial intelligence (AI). Major trends in the forecast period include advanced artificial intelligence techniques, developing new products, integrating machine learning, blockchain technologies, and predictive analysis.

The increase in financial fraud is expected to drive the growth of generative artificial intelligence (AI) in the banking, financial services, and insurance (BFSI) market in the future. Financial fraud involves intentional deception or misrepresentation to unlawfully obtain money, assets, or other financial benefits. This rise in fraud is attributed to the surge in digital transactions, sophisticated cybercrime techniques, the increasing complexity of the financial system, and insufficient security measures. AI plays a critical role in improving financial fraud management within the BFSI sector by offering advanced tools and techniques to detect, prevent, and mitigate fraudulent activities. For example, in May 2023, UK Finance reported that authorized fraud losses in the UK totaled £485.2 million ($616 million) in 2022, with 207,372 cases, marking a 6% increase from 2021. Thus, the growth of financial fraud is a key driver for the expansion of generative AI in the BFSI market.

Leading companies in the generative artificial intelligence (AI) sector for banking, financial services, and insurance (BFSI) are concentrating on technological innovations such as GenAI-powered virtual relationship managers (VRMs) to enhance customer experience and optimize banking operations. These advanced digital assistants utilize generative AI technology to interact with customers and manage relationships, handling tasks such as account management, financial advice, transaction support, and customer service to boost efficiency and improve the customer experience. For example, in July 2024, the Bank of Baroda (BoB), a banking institution based in India, introduced its Generative AI-powered Virtual Relationship Managers (VRMs). These VRMs offer real-time information about BoB's products and services and assist with everyday banking needs such as account statements, checkbook requests, and debit card requests. The multilingual VRM is available through video, audio, and chat interfaces.

In July 2024, Nubank, a neobank based in Brazil, acquired Hyperplane for an undisclosed sum. This acquisition is intended to enhance the personalization of financial products and improve decision-making in areas such as risk assessment and marketing. Hyperplane, a US-based data intelligence company, provides advancements in banking and financial services through its cutting-edge generative AI technologies.

Major companies operating in the generative artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market are Amazon Web Services Inc., Alphabet Inc., Microsoft Corporation, Accenture PLC, IBM Corporation, The Allstate Corporation, Salesforce Inc., NVIDIA Corporation, Intuit Inc., SAS Institute Inc., DeepMind Technologies Limited, DataRobot Inc., C3.ai Inc., AlphaSense Inc., Marqeta Inc., Upstart Holdings Inc., Hugging Face Inc., Kensho Technologies Inc., ZestFinance Inc., TrueLayer Limited, Numerai Inc.

North America was the largest region in the generative artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market in 2024. Asia-Pacific is expected to be the fastest growing region in the market going forward. The regions covered in the generative artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the generative artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in the banking, financial services, and insurance (BFSI) sector involves utilizing advanced AI models that create new content such as text, images, audio, or synthetic data rather than solely analyzing or recognizing patterns in existing data. This type of AI employs techniques such as deep learning and natural language processing (NLP) to generate realistic and valuable outputs, which can improve various functions within the BFSI industry.

The primary deployment methods for generative AI in the BFSI sector include on-premise and cloud-based solutions. On-premise deployment involves installing and running software or systems on the organization's own servers and infrastructure at their physical location. These AI systems are applied in areas such as fraud detection, risk assessment, customer experience enhancement, and algorithmic trading. They are utilized by various end-users, including banks, insurance companies, and financial service providers.

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

The generative artificial intelligence (AI) in banking, financial services, and insurance (BFSI) market consists of revenue earned by entities by providing fraud detection and prevention, predictive analysis, and anomaly detection services and risk management tools, chatbots, and virtual assistant tools. 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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