IHS Markit Report Predicts Value Of AI In Banking To Hit $300b By 2030

As the banking industry continues to find applications (for more on this, visit my article on AI in banking) for AI, firms are putting more funds into research and development in this area. IHS Markits latest report on AI in banking has predicted that the value of AI in banking will grow from $41.1b last year to $300b in 2030.

The report, described as “first fully comprehensive market report on artificial intelligence in banking from IHS Markit”, has some interesting predictions on which regions will contribute the most to this rise in value, with Asia and the Middle East ending up having the fastest rate of growth of the AI sector in banking, with the value of China’s banking AI sector predicted to be $98.6bn, however in the near future North America (the United States in particular) will have put the most funds into banking AI, with the value increasing from  $14.7b (2018) to around $79b in 2030.

AI is poised to challenge and blur our concepts of computing and the ‘natural’ human. This sea change will require both businesses and governments to develop expansive foresight and critical understanding of the full effects of digitization and emerging technologies.
— Don tait, principal analyst at IHS Markit.
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Although AI will bring huge increases in productivity to the banking sector its also predicted to cause 1.3 million job losses/changes in the US alone by 2030 and similar numbers in Europe.

Banking employees potentially impacted by the introduction of AI includes tellers, customer service reps, loan interviewers and clerks, financial managers, compliance officers and loan officers, all in all, AI technology will reconfigure the financial industry’s structure, making the banking sector more humane and intelligent.
— Don tait, principal analyst at IHS Markit.

We can definitely expect to see this sector within banking continue to expand as firms, firstly in the western world and later all over the world, realise the potential AI has within their firms and research,develop and implement the latest AI systems.

Arturo Dezon