AI to Contribute $301 Billion to Banking Revenue by 2030
This significant revenue rise is partly attributable to banks' improved desirability as a result of AI's gains in productivity and customer experience.
The use of artificial intelligence (AI) in banks has rapidly evolved, moving beyond simple automation tasks to enhancing personalized client experiences. This accelerated adoption of AI has proven to be a lucrative venture, with banks experiencing a significant rise in revenue. According to Stocklytics.com, AI is projected to augment banking revenues by a staggering $301 billion by 2030.
AI’s Contribution to Banking Revenue by Region
In 2023, the banking industry saw a substantial increase in earnings, with AI contributing $143 billion. The momentum is expected to continue, with 2024 projected to bring in approximately $164 billion in AI-driven revenue. North America stands to benefit the most, with an estimated $49 billion in AI revenue for 2024. Similarly, Asia Pacific is forecasted to earn $49 billion, while Europe’s banking sector is expected to gain an additional $47 billion.
Stocklytics’s financial analyst, Edith Reads, comments: “Banks’ trial run with AI have proven successful, signalling a growing trend of AI adoption across the banking sector. The improvements in productivity and customer experience brought about by AI have increased the attractiveness of banks, contributing to this substantial revenue growth.”
Future Projections for AI Revenue in Banking
Looking ahead to 2027, Asia Pacific is poised to lead in AI-generated banking revenue, projected to reach an impressive $71 billion. This marks a 45% increase from 2024. North America and Europe are each expected to contribute around $63 billion in AI revenue by the same year.
By 2030, the banking industry is set to generate over $300 billion, with Asia Pacific contributing $99 billion and Europe following closely with $86 billion. North America ranks third, with $76 billion in AI revenue, while the Middle East and Africa are projected to add $20 billion. South America rounds out the top five, with a forecast of $18 billion.
AI's Impact on the Banking Industry in 2024
In 2024, AI will continue to make a significant impact on the banking industry by enhancing both customer experiences and operational efficiency. For instance, Bank of America’s AI-driven chatbot, Erica, provides 24/7 customer support, handling queries and transactions with ease. Since its launch in 2018, Erica has facilitated over 1.5 billion customer interactions.
Barclays Bank is also leveraging AI technology to detect and prevent real-time fraud, ensuring meticulous monitoring of all payment transactions. Additionally, Bank of America has introduced an AI platform called Glass, which analyzes market trends and anticipates customer needs, enabling the bank to deliver personalized investment advice.
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