Artificial intelligence has not only transformed how people relate to technology but has also significantly impacted the business sector.
While some fear AI could replace 300 million full-time jobs in the next six years, companies across sectors continue investing heavily in AI solutions to improve their business processes and customer feedback. One of the biggest spenders on AI technology is the financial sector.
According to data presented by Stocklytics.com, the financial sector’s spending on artificial intelligence is expected to hit $45.2 billion in 2024. This figure will continue growing by 30% per year and hit $97 billion by 2027.
Financial Sector to Spend $275 Billion on Artificial intelligence in Just Four Years
Artificial intelligence has been quite a game changer in the financial industry. AI-driven financial forecasts help companies get much more accurate projections of their future revenues and profitability.
Also, AI technology like machine learning can analyze large volumes of financial data, allowing them to recognize fraudulent behavior. Many companies use technology to analyze contracts and invoices, reducing decision-making time and improving the entire process.
The widespread use of AI across the sector has pushed total spending on this technology to new heights. Statista, IMF, and IDC data show financial companies are expected to spend $45.2 billion on AI solutions this year. By the end of 2025, this figure will grow to $58.3 billion.
The financial market’s heavy spending on AI will continue in the coming years as more and more companies embrace the technology. In 2026, companies in the market are forecast to splash out almost $75.2 billion on AI solutions, or $30 billion more than this year. By 2027, this figure will jump to a massive $97 billion, showing a huge 177% increase in just four years.
The financial sector’s cumulative spending on AI technology and solutions is even more impressive. Statistics show companies in this market will spend a whopping $275 billion on AI in the next four years.
AI Has the Potential to Increase the Growth rate of the Financial Industry by 4.3%
Besides saving time and improving business processes and security, artificial intelligence can also boost the financial market’s growth rate. According to a study by Accenture and Frontier Economics, AI can potentially increase economic growth rates by a weighted average of 1.7% points across 16 industries by 2035.
Moreover, companies that successfully implement AI strategies can increase their profitability by an average of 38% in this period. Information and communications, manufacturing, and financial services are the top three gainers in annual GVA growth rates, with 4.8%, 4.4%, and 4.3%, respectively.
The same study revealed that AI can also raise the economic output of industries. For financial services alone, AI can boost gross value added by $1.2 trillion in 2035.
