IHS Markit Projects Industry AI Investment to Grow to $300 Billion

Artificial intelligence (AI) is revolutionizing the banking sector by detecting fraud in financial transactions based on a pre-defined set of rules. In 2018, the banking industry alone invested $41.1 billion in AI, which includes the cost savings and efficiencies of introducing AI technology compared to keeping existing infrastructures and processes. With the projected increase in the number of AI projects that are launched and become commercially deployed, the business value of AI in banking is projected to reach $300 billion by 2030, according to global business information provider IHS Markit. According to the Artificial Intelligence in Banking Report by IHS Markit, North America is projected to be the largest market for AI in banking between 2018 and 2023. AI in the region will increase from a business value of $14.7 billion in 2018 to nearly $79 billion by 2030. However, the proportional importance of the North American region is likely to decline between 2024 and 2030 as Asia Pacific, Europe and other global regions roll out more AI solutions in the banking sector.