Generative Artificial Intelligence (AI) in Banking Market Report 2025

This Generative Artificial Intelligence (AI) in Banking 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 market size has grown exponentially in recent years. It will grow from $1.16 billion in 2024 to $1.44 billion in 2025 at a compound annual growth rate (CAGR) of 24.1%. The growth in the historic period can be attributed to increasing data availability, cloud computing adoption, customer personalization demand, regulatory pressure for compliance, and the rise of fintech disruptors.

The generative artificial intelligence (AI) in banking market size is expected to see exponential growth in the next few years. It will grow to $3.39 billion in 2029 at a compound annual growth rate (CAGR) of 23.9%. The growth in the forecast period can be attributed to automation of banking processes, demand for fraud detection, expansion of digital banking, rising operational efficiency needs, and enhanced customer experience focus. Major trends in the forecast period include AI-driven chatbots, AI-based risk management, personalized financial services, AI-powered investment tools, and the integration of AI in mobile banking apps.

The growth of the generative artificial intelligence market in banking is anticipated to be fueled by the increasing demand for fraud detection and prevention. Fraud detection and prevention involve strategies and technologies designed to identify, prevent, and manage fraudulent activities. The rising need for these measures is driven by the growing sophistication of fraud tactics and the increasing volume of financial transactions. Generative AI in banking addresses these issues by analyzing extensive data patterns to detect unusual transactions and prevent fraud in real time. For instance, a March 2024 report from the Australian Bureau of Statistics noted that approximately 8.7% of individuals (1.8 million) experienced card fraud during 2022-23, up from 8.1% in 2021-22. Consequently, the growing need for fraud detection and prevention is propelling the expansion of the generative AI market in banking.

Companies in the generative AI banking sector are focusing on creating advanced solutions, such as responsible generative AI, to ensure ethical, transparent, and secure financial processes while enhancing fraud detection and customer service. Responsible generative AI involves the development and use of AI systems that adhere to ethical standards, fairness, transparency, and accountability. For example, in May 2024, Temenos AG, a Swiss software company, introduced Responsible Generative AI solutions for core banking. This advancement represents a significant step in integrating AI within the financial services sector. Temenos' AI-infused banking platform aims to improve data handling for banks, boosting productivity and profitability while maintaining compliance and security. The system allows users to generate unique insights and reports through natural language queries, thus reducing the time needed to access critical data, such as identifying the most profitable customer segments based on demographics.

In July 2024, Nubank, a Brazil-based digital banking platform provider, acquired Hyperplane for an undisclosed amount. This acquisition is expected to enhance Nubank's ability to personalize banking services, generate valuable customer insights, and advance its AI-first strategy, reinforcing its position as a leader in digital banking. Hyperplane, a US-based data company, offers generative AI capabilities specifically designed for the banking sector.

Major companies operating in the generative artificial intelligence in banking market are Google LLC, Microsoft Corporation, Amazon Web Services (AWS) Inc., Accenture plc, International Business Machines Corporation (IBM), Oracle Corporation, SAP SE, Tata Consultancy Services (TCS) Ltd., Nvidia Corporation, Salesforce Inc., Capgemini SE, Cognizant Technology Solutions Corporation, Infosys Limited, Finastra Group Holdings Limited, Pegasystems Inc., Temenos AG, C3.ai Inc., Clari Inc, DataRobot Inc., Aisera, Kasisto Inc.

North America was the largest region in the generative artificial intelligence in banking market in 2024. The regions covered in the generative artificial intelligence in banking 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 banking market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Generative artificial intelligence (AI) in banking involves the use of sophisticated AI algorithms to create personalized content, automate processes, and improve customer interactions. This technology is applied in areas such as fraud detection, customer service, and financial forecasting by generating valuable insights from large datasets. It enhances efficiency, lowers operational costs, and improves decision-making within banking operations.

Key technologies in generative AI for banking include natural language processing (NLP), deep learning, reinforcement learning, generative adversarial networks, computer vision, and predictive analytics. NLP in this context allows AI systems to understand, interpret, and respond to human language, which helps banks automate customer interactions, analyze documents, and improve fraud detection. Generative AI can be deployed through cloud, on-premises, or hybrid models, and is used by various stakeholders including retail banking customers, small and medium enterprises, investment professionals, compliance and risk management teams, operations and process optimization teams, and executives.

The generative artificial intelligence in banking market research report is one of a series of new reports that provides generative artificial intelligence in banking market statistics, including the generative artificial intelligence in banking industry's global market size, regional shares, competitors with a generative artificial intelligence in banking market share, detailed generative artificial intelligence in banking market segments, market trends and opportunities, and any further data you may need to thrive in the generative artificial intelligence in banking industry. This generative artificial intelligence in banking market 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 in banking market includes revenues earned by entities by providing services such as personalized financial advice, risk assessment, customer service automation, and document processing. 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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