Strategic Intelligence: Artificial Intelligence in Financial Services 2025
Description
Strategic Intelligence: Artificial Intelligence in Financial Services 2025
Summary
This report provides an overview of the current state of artificial intelligence (AI) innovation in the financial services industry. It examines the forecasted size of the AI market, delving into specific types of AI spend (such as generative AI, computer vision, and agentic AI). The report lists different ways of utilizing AI to combat fraud, cyberattacks, evolving regulation, bad user experience, growing volumes of transactional data, and new attack vectors. It provides new case studies of innovative uses of AI within the industry, while providing company profiles of the leading AI adopters and specialist vendors across the insurance, banking, payments, and wealth management industries.
AI adoption in financial services has ramped up significantly in the last few years. Financial services firms have long adopted generative AI tools for customer service and improved decision making, yet sustained direct profitability remains far off. The recent boom of agentic AI investment has necessitated financial services companies to reconsider all of their AI pilots, to govern deployments like product launches: require return on investment gates, scale what demonstrably pays, and sunset what does not. Financial services firms must adopt AI to improve cybersecurity and fraud prevention in the face of adaptive cyberattacks, new attack vectors, and rising insider threats.
Scope
Summary
This report provides an overview of the current state of artificial intelligence (AI) innovation in the financial services industry. It examines the forecasted size of the AI market, delving into specific types of AI spend (such as generative AI, computer vision, and agentic AI). The report lists different ways of utilizing AI to combat fraud, cyberattacks, evolving regulation, bad user experience, growing volumes of transactional data, and new attack vectors. It provides new case studies of innovative uses of AI within the industry, while providing company profiles of the leading AI adopters and specialist vendors across the insurance, banking, payments, and wealth management industries.
AI adoption in financial services has ramped up significantly in the last few years. Financial services firms have long adopted generative AI tools for customer service and improved decision making, yet sustained direct profitability remains far off. The recent boom of agentic AI investment has necessitated financial services companies to reconsider all of their AI pilots, to govern deployments like product launches: require return on investment gates, scale what demonstrably pays, and sunset what does not. Financial services firms must adopt AI to improve cybersecurity and fraud prevention in the face of adaptive cyberattacks, new attack vectors, and rising insider threats.
Scope
- GlobalData estimates the total artificial intelligence (AI) market will be worth $642 billion by 2029, up from $131 billion in 2024 at a compound annual growth rate of 37.4%. Insurers, banks, and financial markets are expected to spend over $87 billion in 2029, up from just over $18 billion in 2024.
- According to the Bank of England, 75% of UK financial firms use AI, with 33% of adopters using the technology specifically for fraud detection. AI fraud detection systems have intercepted up to 92% of fraudulent activities before transaction approval in some cases, while Mastercard claims it has improved fraud detection rates by up to 300% using AI.
- After years of machine learning and a recent generative AI surge, autonomous agents promise the end-to-end automation that finally turns AI into a scalable profit engine for the FS industry. By automating complex workflows (including onboarding, compliance checks, data pipeline creation, fraud detection, and real-time risk scoring), agentic systems cut costs and free talent for higher-value work.
- Understand key developments in the AI space.
- Identify the strategies of industry leaders and competitors.
- See the impact of using AI to combat cyberattacks and new fraud attempts.
- Learn how banks are using AI to comply with evolving regulations.
- Find specialist vendors for specific AI needs.
- See the next steps for your AI strategy.
- Develop an understanding of how to get return on investment from AI pilots.
Table of Contents
- Executive Summary
- Players
- Value Chain
- Advanced AI capabilities
- The Impact of AI on Financial Services
- Banking and payments
- Insurance
- How AI helps tackle the challenge of cybersecurity
- How AI helps tackle the challenge of real-time threat detection and response
- How AI helps tackle the challenge of insider threats and human error
- How AI helps tackle the challenge of customer experience
- How AI helps tackle the challenge of the growing volume of transactional data
- How AI helps tackle the challenge of new attack vectors
- How AI helps tackle the challenge of compliance with evolving regulations
- Industry Analysis
- Agentic AI is the next step
- Case Studies
- Visa acquires Featurespace to reduce fraudulent transactions
- Cytora launches an agentic AI concierge
- Mastercard releases AI-driven “agents” that can execute payments
- Nvidia unveils blueprint for AI in fraud detection
- Covéa to use AI to re-enter the electric vehicle insurance market
- Eltropy launches agentic AI voice agents
- HSBC uses AI to fight financial crime
- Floodbase uses AI to map floods in near real-time
- ZestyAI launches AI agent for regulatory automation
- BlackRock unveils Asimov, an AI-powered investment decision-making platform
- In June 2025,
- Fenergo uses agentic AI for its FinCrime platform
- Companies
- Leading AI adopters in financial services
- Specialist AI vendors in financial services
- Sector Scorecards
- Retail banking sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Non-life insurance sector scorecard
- Who’s who
- Thematic screen
- Valuation screen
- Risk screen
- Glossary
- Further Reading
- GlobalData reports
- Our Thematic Research Methodology
- About GlobalData
- Contact Us
- List of Tables
- Table 1 Leading AI adopters in financial services
- Table 2 Specialist AI vendors in financial services
- Table 3 Glossary
- Table 4 GlobalData reports
- List of Figures
- Figure 1: Key players in AI
- Figure 2: The AI value chain
- Figure 3: There are five categories of advanced AI capabilities
- Figure 4: Banks, payment facilitators, and wealth managers should invest in all areas of the AI value chain
- Figure 5: Thematic investment matrix for insurers
- Figure 6: Insurance customers are largely in favor of AI being used to resolve claims
- Figure 7: Insurance customers, on the whole, support AI being used in their claims processes
- Figure 8: Impersonation fraud continues to dominate fraud types.
- Figure 9: FS companies have already spent billions on AI
- Figure 10: Agentic AI will likely play a supportive role in insurance
- Figure 11: Visa’s new AI fraud detection has reduced fraud
- Figure 12: Nvidia released its blueprint at Money 20/20
- Figure 13: Floodbase can predict floods before they happen
- Figure 14: Who does what in the retail banking space?
- Figure 15: Thematic screen - Retail banking sector scorecard
- Figure 16: Valuation screen - Retail banking sector scorecard
- Figure 17: Risk screen - Retail banking sector scorecard
- Figure 18: Who does what in the non-life insurance space?
- Figure 19: Thematic screen - Non-life insurance sector scorecard
- Figure 20: Valuation screen - Non-life insurance sector scorecard
- Figure 21: Risk screen - Non-life insurance sector scorecard
- Figure 22: Our five-step approach for generating a sector scorecard
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