Insights

Harnessing AI: Insights and Innovation in Financial Services

Written by GFTN | Oct 21, 2024 2:06:15 PM

This report comprehensively reviews Artificial Intelligence (AI), particularly in financial services.

October 2024 

As of August 2024, the global AI market was valued at approximately US$638.2 billion and projected to grow to US$3.6 trillion by 2034, i.e., a compound annual growth rate of 19.1%.

The United States leads the market with a 37% share by revenue, followed by Europe and the Asia-Pacific region.

AI patent activity has increased notably, with global grants up nearly 63% from 2021 to 2022. The Asia-Pacific accounted for over 75% of these patents, with China as the primary contributor.

Private investments in AI declined overall in 2023, trends reveal; however, generative AI surged, attracting

US$25.2 billion, nearly nine times the previous year's investment. The United States remains at the forefront of

private investments, totalling US$67.2 billion.

The report also discusses varying regulatory approaches to AI across major regions: the European Union has

established the AI Act to ensure ethical standards; the United States employs a decentralised approach focusing on innovation; and China is implementing regulations specifically targeting generative AI.

Overall, the report underscores the critical balance between fostering innovation and ensuring responsible

development within the rapidly evolving AI landscape in finance.

 

FutureMatters is a platform for thought leaders, practitioners, and industry players to share their insights on emerging opportunities and challenges in today's world. Apply to be a contributor here.