According to a new report, published by KBV research, The Global Generative AI In Financial Services Market size is expected to reach $21.1 billion by 2031, rising at a market growth of 38.8% CAGR during the forecast period.
Generative AI revolutionizes financial services by enabling innovative applications that enhance efficiency, personalization, and decision-making. Furthermore, Generative AI can create synthetic data that mimics real-world financial data without compromising customer privacy. This synthetic data is valuable for training machine learning models, especially in areas with limited real-world data. It allows financial institutions to improve the accuracy of predictive models while adhering to data privacy regulations.
The Cloud-based segment is registering a CAGR of 38.5 % during the forecast period. Scalability is a significant advantage, as cloud-based solutions allow financial institutions to adjust their resources dynamically based on demand without the burden of substantial upfront investments in physical infrastructure.
The Retail Banking segment led the Global Generative AI In Financial Services Market by End User in 2023; thereby, achieving a market value of $6.2 billion by 2031. This dominance is largely due to the increasing adoption of AI technologies within retail banking to enhance customer experiences and streamline operations. Retail banks utilize Generative AI for various applications, including personalized customer service, automated chatbots, and tailored financial product recommendations.
The Risk Management segment is growing at a CAGR of 37.7 % during the forecast period. This is primarily due to the increasing need for financial institutions to identify, assess, and mitigate various risks. Generative AI enhances predictive modelling, scenario analysis, and risk assessment processes, enabling organizations to make informed decisions and improve risk management frameworks.
Full Report: https://www.kbvresearch.com/generative-ai-in-financial-services-market/
The North America region dominated the Global Generative AI In Financial Services Market by Region in 2023, and would continue to be a dominant market till 2031; thereby, achieving a market value of $8.5 billion by 2031. The Europe region is anticipated to grow at a CAGR of 38.3% during (2024 - 2031). Additionally, The Asia Pacific region would witness a CAGR of 40% during (2024 - 2031).
By Deployment
By End User
By Application
Unique Offerings 
