AI Expected to Boost Banking Revenue by $301 Billion by 2030

The use of artificial intelligence (AI) in banks has quickly expanded from simple automation tasks to personalized client experience. This escalated use of AI has proven lucrative, with banks seeing a rise in revenue. According to Stocklytics.com, AI will augment banking revenues by $301 billion by 2030. 

The site’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.

Stocklytics’ financial analyst, Edith Reads

AI’s Contribution to Banking Revenue per Region

In 2023, the banking industry saw a massive $143 billion added to its earnings belt due to AI’s contribution. By the end of 2024, the banking industry is expected to earn even more revenue, roughly $164 billion, from AI’s value addition. North America’s financial hub will benefit the most from the revenue spike, with $49 billion earned from AI in 2024. Asia Pacific will also earn $49 billion, while  Europe’s banking sector is projected to gain an additional $47 billion.

By 2027,  Asia Pacific’s banks will rake in the most—an impressive 71 billion. This projected rise in 2027 for the region represents a 45% surge from 2024. North America and Europe are each expected to contribute around $63 billion in AI revenue.

By 2030, the banking industry will generate over $300 billion, with Asia Pacific having $99 billion and Europe trailing with a remarkable $86 billion.

North America ranks third in artificial intelligence banking revenue contribution, with $76 billion in 2030, while the Middle East and Africa follow with $20 billion added. South America takes the fifth slot with a projection of $18 billion.

AI Use in the Banking Industry in 2024

In 2024, artificial intelligence will significantly impact the banking industry by enhancing customer experiences and operational efficiency. For instance, Bank of America’s AI-driven chatbot, Erica, provides round-the-clock customer support and handles queries and transactions adeptly. Since its launch in 2018, Erica has facilitated over 1.5 billion customer interactions.

Barclays Bank also leverages AI technology to detect and prevent real-time fraud, ensuring that all payment transactions are meticulously monitored. Additionally, Bank of America has introduced an AI platform called Glass, which analyzes market trends and anticipates customer needs, allowing the bank to deliver personalized investment advice.