Global generative AI market size in financial services 2022-2033

The generative AI market in finance is poised for significant growth, with projections indicating a surge from 1.09 billion U.S. dollars in 2023 to over 12 billion U.S. dollars by 2033. This remarkable expansion, driven by a compound annual growth rate of 28.1 percent, underscores the increasing importance of AI technologies in the financial sector. As companies recognize the potential of generative AI to transform their operations, the industry is witnessing a rapid adoption of these innovative solutions.

AI readiness and investment trends

Financial institutions are actively preparing for the AI revolution, with some leading the pack in terms of readiness. Capital One topped the AI readiness index among major banks in the Americas and Europe, scoring 90.91 out of 100. This readiness is reflected in the broader financial sector's investment patterns, as the industry's AI spending is expected to grow from 35 billion U.S. dollars in 2023 to 97 billion U.S. dollars by 2027, representing a 29 percent CAGR. The banking sector, in particular, has emerged as a front-runner in AI investments, allocating 20.6 billion U.S. dollars in 2023 alone.

Widening adoption and future outlook

The finance sector is set to experience widespread AI adoption in the coming years. In 2022, nearly half of executives anticipated their companies would achieve widescale AI implementation by 2025. This trend aligns with the projected growth in generative AI market size, indicating a shift towards more critical and extensive AI applications in finance. As the industry continues to invest heavily in AI technologies, companies are positioning themselves to leverage these advancements for improved efficiency, customer service, and decision-making processes. The rapid expansion of the generative AI market in finance reflects the sector's commitment to embracing innovative technologies to maintain a competitive edge in an increasingly digital landscape.